This 1 Stock is a Gold MINE ‼️

This has probably been the best earning season ever. And in this video, I want to talk about a stock that is now massively undervalued given what we know from those earnings. Also, Nvidia just got its next catalyst in my opinion. We know that Nvidia's been stuck in this sideways pattern for the longest time, but I think this catalyst for the long term could be the thing that starts propelling it towards the $300 valuation that we talked about. My actual valuation for next year is actually 364. More on that later. And Bloom Energy and Hood made our entire month so far and it's only the third day of September. Here was the very last video talking about BE. In terms of swing trades, as I said, I'm looking at some of the energy stocks. Bloom Energy looks like it could have an extremely nice setup. It's down 41% from highs, but if we break this trend line here, then I will definitely be looking at this for a swing trade. This was a textbook setup. Opened above the trend line, alerted the calls, closed that for 60%. And I'm not going to belabor you with Hood. If you're a fan of this channel, you know I've been pounding the table on Hood. Finally got to those equal highs and beyond. I will discuss what my price targets are for Bloom and Hood and go over some trade setups that I'm looking right now as well. And all of this in the backdrop of September seasonality. Things are scary when volatility is this compressed going into September. Believe it or not, I would be a lot more comfortable if we're going into September and we already had a VIX spike. But not only do we have CPI and PPI, we also have the Fed meeting on September 18th. Obviously, all of this while oil is inching towards $92. So, I'm going to give you my prediction on what I think is going to happen with the Fed meeting and with inflation. Let's get right into it. If you don't know who I am, my name is Z. I have a professional background in finance and in tech. I cover the markets on a weekly basis. Try to do more than one video a week and I do it from a trading and an investing perspective because my audience does fill both of those roles. And let's talk about the stock that I think right now is massively undervalued and that stock is Broadcom. So Broadcom reported earnings and absolutely merked it. Now, it fell by as much as almost 7% and has since recovered and is only down 2.74% the day after earnings. However, from highs, the stock is still down 28% trading at a discount. Let's dive into it a little bit more. Now, like most of the mega caps, the stock beat on revenue and earnings per share. Revenue is up 86% year-over-year. It beat earnings per share at 332. 325 was expected. Operating income is up 92% year-over-year. Free cash flow is 13.7 billion. Now, here's the kicker. AI semiconductor revenue is up 221% year-over-year at $16.7 billion. And here was the most impressive part of the earnings call in my opinion. On the call, Hawk 10, who was the CEO said that they are guiding revenue to approximately 115 billion. sorry AI semiconductor revenue specifically to 115 billion. So that is double what they did in the prior year and the prior year was double what they did in the year prior. So revenue doubled from 25 to 26 and now revenue is expected to double again as it relates to AI semiconductor revenue from 26 to 27. They have a backlog of 164 billion with 78% of that recognized in fiscal year 27 and 28. So, if you don't know what Broadcom does, it does basically two main things and why it's a $ 1.75 trillion company. And the two main things are semiconductor solutions. So, they build custom silicon for outside vendors such as Apple, such as Google. So, the Wi-Fi and Bluetooth chips that are in your phone, for instance, were designed and supplied by Broadcom. And the other side of their business which is the higher margin side of the business but also the one that is declining in relation to the custom silicon is the infrastructure software. As you know software is the highest margin business in the tech world. And if you guys are in the techware you might have used VMware before which is a company that Broadcom acquired and built upon and is basically its crown jewel in the infrastructure software. Now, an ancillary business, you can think of it as beneath the custom silicon umbrella that Broadcom is now getting into, which could open up a whole new total addressable market, is custom silicon for frontier models. So, OpenAI's Jalapeno chip for instance, Broadcom is the one designing the chip. So, let's go into Alphascope and take a look at Broadcom's numbers here. Forward PE of 18. Now, check this out. Return on invested capital is 24%. 10-year revenue keer 25% balance sheet rock solid debt to equities at 0.59 price earnings growth is at point4. The lower the better remember all-time high revenue all-time high by far not even close. All-time high gross profit all-time high net income. And this is important because it is entering the or it has entered the hardware business in a major fashion. And so a lot of analysts thought that hey Broadcom switching or pivoting towards AI hardware is going to have a huge hit on their margins but it really hasn't. All-time high cash from operations all-time high free cash flows at 13.7 billion just this quarter. All-time high earnings per share. Even though we have an all-time high capex, look at their free cash flows in relation to their capex. And one of the things that I love about Alphascope is you can check out the separation of revenue by segment. So you could see here infrastructure software and semiconductor solutions being its two main segments. So basically you have earnings per share trending this way and price trending this way. Now, Broadcom's forward year EPS for 2027 is about $18. And if we take a look at its current valuation, it's currently trading at a 44P. So, the way that we calculate what its stock price would be if it traded at the same valuation and delivers on that $18 EPS, you multiply the PE by the EPS for next year. So let's do 44 * 18 and you get $792 for its share price. And if you look at since 2024, Broadcom has really been trading in this 40 to 80x multiple. So I took a conservative multiple based on the fact that its stock price is down 28%. Let's say you even use a more conservative multiple of say 25. 25 * 18 is 450 I believe. So even if you use a conservative multiple of 25, you still come out to a share price of 450 and it's currently trading at 358. So if they deliver on their earnings and they have for quarter after quarter, I think Broadcom is starting to look pretty undervalued here. Now from a technical perspective, all I would like is for Broadcom to get above this range. You could see here the this is previous resistance that became support. So this right here is a very important level around the 360 level. So I would want Broadcom to get above this. If it starts dropping below, then I will add to my position. But to me, starting a dollar cost a even though we do own Broadcom for less than 300 bucks because we picked it up earlier this year. But if you're establishing a new position, I don't mind dollar cost averaging here with the intention of potentially adding more if we get to this pivot. And by the way, we're just talking about guide for 2027. Their guide for 2028 is 230 billion, which is another double up from 27. All right, Nvidia just got its next catalyst in my opinion, and it's the biggest catalyst that Nvidia has had in a very long time. Nvidia is also undervalued in my opinion. You can pause this. This is the write up that I did for the academy after Nvidia earnings and see what kind of detail we actually put into this stuff. But aside from the fact that Nvidia expects Q3 revenue to hit $18 billion dollar, mind-blowing, that's not the catalyst that I'm talking about. The agreement was just announced today, as of the time of this recording, that Nvidia is going to acquire Hugging Face. And that's a very funny name, I know, but if you don't know what Hugging Face is, it's sort of like the GitHub for AI models. It hosts over three million models and serves as the hub for 18 million developers. Now, this is the ultimate chess move here and for only 12.9 billion, which obviously represents a fraction of the money that Nvidia generates. But Nvidia's really been hitching its wagon to frontier models. So the models that are hyperscaler dependent, open AAI, Anthropic, Microsoft, and these are the companies that have been basically buying its chips and driving its revenue. But what happens if those companies slow down or what happens if those companies won't be able to pay its commitments? Not Microsoft, but like Anthropic or Open AI. Well, then Nvidia's kind of partially at least. So in this case what happens is they investing in an openw weight model when companies start implementing these openw weight models all across the world they are going to rely on Nvidia GPUs to do so as opposed to Nvidia GPUs just being sold to no it's not just being sold but largely being sold to Frontier models. Now it opens up the door to all of these companies that are more interested in hosting openw weight models. And to be honest, this might have been a slight dig at Sam Alman, too, who basically came out and said that they were going to produce their own chip to compete with Nvidia, even though they would not exist without Nvidia's money. So, could be all right. Bloom Energy and Hood. So, aside from the technical reasons that I took this trade, there was a lot more that went into it. I discussed that there was a recent catalyst with Nancy Pelosi picking up shares. What the hell is wrong with my trading view? So, you have the technical analysis, obviously. You have the fundamental analysis of the stock itself, which I discussed in my previous video. You can go back and watch that. But then you also have the momentum catalyst which is Nancy Pelosi buying shares and the rumor that Bloom Energy is a contestant for being added to the S&P 500 or included in the S&P 500 which rebalances on Friday September 4th after the close. Now, if it does, there might be a sell the news effect, but the run-up to that excitement in conjunction with the technicals, the fundamentals, and the other momentum catalysts sort of was a perfect storm for this in my opinion. Not only that, but when I sent out the alert and I sent I send out all my alerts are in full detail. One of the things that I pointed out was all of the gamma that was sitting at 250 as well. And at that time, you could see Bloom was trading at 216. So started making a move towards 250 today and it could continue to go up. I don't know. But we already closed the trade because you want to take advantage of a 9% candle when you're in calls. And Friday we also have non-farm payrolls. But I am very bullish on Bloom Energy going forward as a stock aside from this trade. And some of the other energy stocks I talked about that were necessary for AI. Vertive and CEG also broke out today, but I did not have a an options trade on CEG. You can go back and check my last video for my fundamental thesis on these stocks. Now, here are some trade setups that I'm currently looking at. The obvious obvious obvious one is memory. I love when we get these coiled type of setups here and I will take this trade every single time. And memory really has been following this blueprint where we rally, consolidate rally consolidate rally consolidate, rally, consolidate. And until we truly break market structure, then once this sets up, again, in my opinion, you have to take this trade. It's a very lowrisk, highreward setup. And here I'm talking about trading, not investing. Obviously, there is a thesis for investing in memory, but I think the days of gaining thousands of percentage points in these names is long gone. Another stock that I'm looking at here is Google. I want to see if we can break this little downtrend here. I think that Google might have started basing around this level. And riding on the back of crypto plus data centers is Cipher. I was looking for Cipher to break this downtrend. It kind of did a little bit, but if we get a break and a retest, then I think that there is a violent move for Cipher coming in the near term, and I think there's a no-brainer potential breakout on data centers. This right here is a textbook setup on iron as well. Obviously, you want to see it confirm. And as I told you from my video after Nvidia earnings saying that if we do get a retest of the earnings gap, I will likely start doubling up on my LEAPS. If we can get above this 236 level, I think that will likely start setting up a move towards 300 in the coming months. I don't know what happened to my camera there, but this does not come without a cautionary signal in my opinion. Right, we do have a ton of nice potential setups. Some of them need confirmation. However, things do tend to get volatile when we have volatility this compressed going into September. Now, oil prices are still are heading back towards 92 $92. There is there doesn't seem to be a resolution in Iran, although there are rumors that Trump is looking for a quick out, which I don't doubt, especially with the midterms coming up. And there's all this talk that the Fed is going to raise rates. I don't know how people think this. I absolutely do not think that in on September 16th the Fed is going to raise rates. Now, yesterday this was up to 63% that the Fed was going to raise rates. And I actually thought about putting a bet on Khi, but 63% that the Fed was going to raise rates back down to 50%. And it was all after the Fed governor Chris Waller, who was known as a hawk, has fundamentally changed his mind and said that actually he favors a hold for September 16th. And here's why I don't think the Fed is going to raise rates. We have CPI, PPI coming up the week of September 6th, right? So we have PPI September 10th, CPI September 11th. Taking a look at the inflation report, the last inflation report, it's pretty clear that energy, if you take a look at energy here, it's pretty clear that energy dominates the inflation for this report. Yes, other things have gone up as well, maybe a byproduct of fuel costs, but nothing even comes close to energy. So, what is a rate hike going to do? Is a rate hike going to lower the cost of oil? No. an end to the conflict in the Middle East is going to lower the cost of oil. Plus, yields are going up and they're skyhigh. 30 years at 5.25%, if we take a look at the 2-year, which follows much more closely the Fed funds rate, it's at 4.34%. The 2-year was down here before the conflict in Iran started. So, the bond market is doing a lot of the tightening for the Fed. The stock market does look set up nicely here for at least a nice beginning to September, bouncing off of previous all-time high on the S&P 500. I could see this start, you know, edging towards that 79 or that 8,000. September opex, which is September 18th, is always going to be a scary proposition, especially in a midterm year. I showed you guys the last three midterms after OPEX. we've had at least a 10% drop in 2022, in 2018, and also in 2014. So, I'm going to be going over an investing plan in more so in the in the Sunday video that I usually do for you guys, the longer one. But, I am probably looking to start selling into strength this September, positioning myself for some volatility, and then definitely loading the boat if we do get a nice drop. And guys, if you're interested in trading with me every single day at Market Open, I run through the market. We go over potential day trades as well as stocks that I'm looking at for swings and you want access to the swings in full detail. I know I talk about them a lot in the videos, but giving my actual thesis as to what I'm looking at, when I'm taking it, what strike price am I picking, if it's an option, what expiration, how am I mitigating the risk if it's a losing position. These are all invaluable things. And right now, if you're watching, depending on when you're watching this, there could be a Labor Day coupon for the full academy membership. I think it's 30% off the annual, 20% off the monthly, just check the link in the description. And if you're only a long-term investor and you're only interested in macro analysis, you're interested in post earnings reports, you're interested in my fundamental analysis on stocks, what I'm adding to the long-term portfolio, there is a more affordable membership as well. That link is also in the description. Get yourself an Alphas Scope membership. It's a free trial, 7 days. Subscribe to the channel. Hit that notification bell. Until the next video, stay safe out there, traders. base.