We're Raising Price Targets on 5 Portfolio Holdings

We are doing some catch-up work following the aggregate developments over the last two weeks. By that we are referring to another step up in hyperscaler capital spending, strong AI and data center demand at Hon Hai, Lumentum (LITE) and Super Micro (SMCI) and last night’s announcement that Anthropic has committed to spend $200 billion on Google’s (GOOGL) Cloud and chips.

To that we can add Advanced Micro Devices' (AMD) vibrant outlook for AI and data center demand through 2030, and growing signs of the need to expand chip manufacturing capacity. On that last note, we can also add soon-to-be public SpaceX filing an initial investment plan of $55 billion to build its “Terafab” fab in Texas. Depending on potential other phases of that project, SpaceX’s total bill could balloon to $119 billion. At least now we have a grasp on what some of the proceeds from SpaceX’s targeted $1.75 trillion June IPO will be earmarked for.

Based on those developments, we are making the following price target adjustments:

Alphabet to $410 from $365

Applied Materials (AMAT) to $465 from $425

Amazon (AMZN) to $310 from $275

Broadcom (AVGO) to $475 from $445

Marvell Technology (MRVL) to $175 from $160

As information arrives, be it industry data, corporate earnings or other signals we collect, we will continue to revisit existing price targets for the Portfolio’s holdings. Marvell will report its quarterly results on May 27 with Broadcom to follow on June 3.

In another Alert likely to be published in the coming days, we will revisit existing panic points for our holdings and potentially rechristen “panic points” with a more fitting moniker.

As a reminder, we do not have price targets for positions tied to our EPS Diplomats strategy. That basket is up more than 47% quarter to date, led by the significant gains in Bloom Energy (BE) , Credo Technology (CRDO) , Micron Technology (MU) and Lumentum. The model’s discipline is to hold the positions until the next quarterly reconstitution that will occur on June 30 and July 1. We understand if folks opt to lock in gains where appropriate, but we will stick to the strategy’s discipline.

My question to you is should we rename the basket “EPS All-Stars” or stick with “EPS Diplomats”? Cast your vote in the comments section below.

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At the time of publication, TheStreet Pro was long AMAT, AMZN, AVGO, BE, CRDO, LITE, MU, and MRVL.