Three buys for the sell-off, including an AI play, from Nancy Tengler
Broadcom may still be positioned for gains in 2025 despite its latest pullback, according to money manager Nancy Tengler of Laffer Tengler Investments. The firm’s chief executive officer and chief investment officer joined CNBC’s ” Power Lunch ” on Monday to offer her take on the chipmaker, as well as a pair of other market movers. Here is what Tengler, a professional investor since the late 1980s, said during the segment’s “Three-Stock Lunch.” Broadcom Broadcom shares slumped 17% Monday on the heels of Chinese startup DeepSeek raising concern over U.S. leadership in artificial intelligence . But Tengler is sticking with Broadcom in 2025, saying the company has “had a very powerful capital allocation plan.” Notably, she also cited CEO Hock Tan’s recent remarks that the total market opportunity for Broadcom’s AI chips and parts for AI networking could bring in $60 billion to $90 billion a year by 2027. “I don’t think DeepSeek changes that,” Tengler said. “I think you’re getting an opportunity to buy in at much lower levels and then get paid to wait.” On top of that, Broadcom raised its quarterly dividend 11% to 59 cents per share last month. “You’re just going to continue to get paid to wait as the company continues to evolve,” Tengler added. Goldman Sachs Fewer regulations of business under President Donald Trump’s administration could benefit Goldman Sachs , Tengler said. “Even if the Trump administration 2.0 doesn’t get to 15% corporate tax rates, at 18% it adds 4% to S & P earnings,” she continued. In the absence of an aggressive Federal Trade Commission challenging deals, Goldman will benefit from a rise in mergers and acquisition activity, Tengler said. Tengler also believes Goldman is in its “early innings,” given that it’s incorporating the use of AI in areas of investment banking. Last week, the bank officially rolled out its generative AI assistant to bankers, traders and asset managers. While Goldman shares moved about 1% lower Monday, they’ve risen more than 10% this month, putting the stock on pace for its third monthly advance in the past four. Spotify Spotify , which Tengler called a “recession-proof name,” pared early losses to move marginally higher Monday. That led the stock to extend its latest advance to five consecutive days. “[CEO] Daniel Ek said 2024 was the year of monetization – they did just that, generated earnings, and now we’ve got 58% earnings growth off of albeit low numbers this year,” Tengler said. Spotify is on pace to rise more than 14% in January.
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