Hi Multis
It’s the 15th of the month and that means that you get the Best Buys Now.
Before we dive in, I just want to set the record straight, as there are some newer Multis who might not know this. The Best Buys Now are not short-term opportunities. In other words, this is not for traders.
That doesn’t mean that I sometimes don’t add stocks that I think have short-term potential. I added BE Semiconductor Industries to my 10 Stocks For 2026, for example. The stock is up about 140% year-to-date.
AMD was in the Best Buy Now in March 2023, and it’s up almost 500% since then. Nvidia was a Best Buys Now in June 2022 and it’s up a whopping 1,155% since then.
But sometimes, it can take years before a stock takes off. In April 2023, I picked Datadog at $67.32. For more than 3 years, it underperformed but then it shot up like a rocket in the last few months. That pick is more than a three-bagger now. That’s just sometimes how the market works.
There are many more big winners, like CrowdStrike (up 587% since the Best Buys Now of January 2023), Cloudflare (up 420% since that same Best Buys Now), ASML (more than a threebagger since the Best Buys Now of October 2023), and many others.
There have been misses as well, of course. There were stocks like Fiverr, which was in the Best Buys Now a few times and which I ended up selling. The same goes for Paycom and other stocks. But one Nvidia, AMD or CrowdStrike wipes out the losers and then some. That’s how I invest.
And then there’s a category that underperforms but that I still believe in strongly for the long term and I’m convinced they will have their Datadog moment, that moment that made it worth waiting for.
But enough introduction, let’s go to the picks of this month. Just one remark, while the picks are numbered, this is completely random, not a choice of one above the other.
1. Broadcom
Broadcom (AVGO) was a Best Buys Now in February 2025 and it’s up 62% since then, but I think it’s attractive again.
After the Q2 earnings on June 3, the stock fell 20%.
There could be a few extra reasons (like the SpaceX IPO sucking up money), but I think there were two main reasons for the drop. The first was that guidance was not raised for the year, the second was that guidance for Q3 gross margin was 74%, down from from 77.1%.
But the margin guidance was lower because the mix changed. Broadcom sells high-margin software and lower-margin custom chips, and when chips grow faster than software, the margin will drop. It’s that simple.
There was a single $10 billion custom-chip order that will be in Q3. CEO Hock Tan already announced that last year.
Revenue was up 48% to $22.2 billion, AI chip revenue up 143% to $10.8 billion. The problem is not demand, but TSMC capacity. You can see this in the booking, orders for later delivery. They were above $30 billion, while only $10.8 billion was shipped. Customers don’t do a one-time order but are making reservations for the next few years.
But Broadcom is more than a chipmaker now. Almost 40% of AI revenue comes from networking, the switches and optics that move data between chips. And that’s one of the bottlenecks in data centers.
Broadcom launched a new platform with Apollo and Blackstone that will finance over 20 gigawatts of compute capacity through 2028. In other words, Broadcom helps finance the buildout.
I think the valuation looks good after the drop. Just look at the forward PEG.
That’s a 2026 PEG of 0.47, a 2027 PEG of 0.30 and a 2028 PEG of 0.45. That’s all very cheap.
As you can see, I added the number of analysts, because the more analysts, the higher the reliability of the consensus. Beware, it’s still an estimate and it could be quite wrong. And don’t forget that Broadcom has a history of consistent outperformance versus the consensus.
Here’s where the free part ends. If you are a paid sub, keep reading, as there’s much more.
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