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Paramount Chairman David Ellison’s latest offer to buy Warner Bros. Discovery contained a twist:

Should Paramount, backed by tech billionaire Larry Ellison, pull off the purchase, Warner Bros. Discovery Chief Executive David Zaslav could stay on to help lead the combined enterprise.

“They’re sweetening the pot,” Paul Hardart, a professor at New York University’s Stern School of Business, said of the Ellison family. “It just shows all the little arrows in their quiver they’re using to try to push this deal.”

David Ellison’ unexpected olive branch to Zaslav was contained in a letter this month to Warner Bros. Discovery’s board that offered $58 billion in cash and stock for the entire company. The move underscores the family’s determination to win the entertainment company that includes HBO, CNN and Warner Bros. film and television studios — and an obstacle in their path.

After hustling for decades to get to the big stage, Zaslav, 65, isn’t ready to relinquish the reins. He’s eager to prove critics wrong and complete a turnaround after three painful years of setbacks and cost cuts to reduce the company’s mountain of debt.

Warner Bros. Discovery board members, including Zaslav, have unanimously voted to reject Paramount’s three bids, viewing them as too low and not in the best interest of shareholders, according to two people close to the company who were not authorized to comment.

The board supports Zaslav’s desire to forge ahead with a planned split of the company next spring. But it also has opened the auction to other potential suitors, which is expected to lead to the firm changing hands for the third time in a decade.

Representatives of Zaslav, Warner Bros. Discovery and Paramount declined to comment.

David Ellison’s audacious offer is being guaranteed by his father, Larry Ellison, the world’s second richest man with a net worth that exceeds $340 billion. The Ellisons’ proposal includes paying 80% cash to Warner shareholders and the rest in stock, according to two people familiar with the matter who weren’t authorized to comment. The most recent offer was $23.50 a share.

The Ellisons began their campaign last month, just weeks after David Ellison’s Skydance Media, along with RedBird Capital Partners, picked up the keys to Paramount, which includes CBS, MTV, Nickelodeon and the Melrose Avenue film studio, which has been depleted by decades of underinvestment.

Since then, the 42-year-old Ellison has led Paramount on a buying bonanza, paying $7.7 billion for UFC media rights and $1.25 billion over five years to Matt Stone and Trey Parker to continue creating their cartoon “South Park.” It also wooed Matt and Ross Duffer, the duo behind “Stranger Things,” away from Netflix with an exclusive four-year deal. This week, it announced a planned East Coast expansion, signing a 10-year lease for a film and TV production center under construction in New Jersey.

The proposed addition of the more vibrant Warner Bros. would give the Ellisons an unparalleled entertainment portfolio with DC Comics including Superman, “Top Gun,” Scooby-Doo, Harry Potter, “The Matrix” and “The Gilded Age.”

The family would control streaming services HBO Max and Paramount+, nearly three dozen cable channels, including HGTV, Food Network and TBS, and two legacy news operations — CNN and CBS News.

It would also accelerate the trend of uber billionaires, including Amazon’s Jeff Bezos and SpaceX’s Elon Musk, of owning prominent news, entertainment and social media platforms. Larry Ellison also is part of a U.S.-based consortium lined up by President Trump to buy TikTok from its Chinese owners.

“If a trade deal with China is imminent, and TikTok would be aligned, then it would create a new media colossus, the likes of which we haven’t seen,” said veteran executive Jonathan Miller, chief executive of the investment firm Integrated Media Co.

Paramount is in talks to merge with Warner Bros. Discovery.

(Al Seib / Los Angeles Times; Dania Maxwell / Los Angeles Times)

The drama is unfolding as Paramount on Wednesday slashed 1,000 workers in the first round of cuts since Ellison took over. A second wave of layoffs — affecting another 1,000 workers — is expected in the coming weeks, helping fulfill a promise made to Wall Street by Ellison and Redbird to reduce expenses by more than $2 billion.

Combining with Warner Bros. would bring more layoffs, analysts said, and a potential hollowing out of a historic studio.

“Merger after merger in the media industry has harmed workers, diminished competition and free speech, and wasted hundreds of billions of dollars better invested in organic growth,” the Writers Guild of America West, said last week in a statement in opposition to the proposed unification. “Combining Warner Bros. with Paramount or another major studio or streamer would be a disaster for writers, for consumers, and for competition.”

Critics point to a long list of media merger misfires, including the disastrous AOL Time Warner merger a quarter century ago. Some critics contend Walt Disney Co.’s $71-billion purchase of much of Rupert Murdoch’s entertainment holdings didn’t live up to expectations, and AT&T whiffed its $85-billion deal for Time Warner, handing it to Zaslav’s Discovery four years later for $43 billion.

The New York native, a descendant of Jewish immigrants from Poland and Ukraine, had spent 16 years running the Discovery cable channel group, a respectable business, but one that lacked Hollywood flash.

Zaslav grew up on the fringe of New York City, in Ramapo, N.Y., where he’d been a promising tennis player who proudly wore his athletic gear to middle school. Tennis was his identity — until he started getting beat by players he used to whip.

Zaslav’s coach sat him down, bluntly saying he wasn’t putting in the work.

“I vowed that day I would never be outworked again,” Zaslav said during a 2023 commencement address to Boston University graduates. Underlings have long marveled at his indefatigable work ethic.

The speech was meant to be his triumphant return to his alma mater. Zaslav had finally made it to Hollywood, where he was now holding court in an exquisite corner office that had belonged to studio founder Jack Warner.

Zaslav had big plans to turn around Warner Bros. But, in Boston, he suffered a beatdown.

The Writers Guild of America had just gone on strike against his and other Hollywood studios. Protesters heckled Zaslav. Students booed. A plane flew overhead, waving a banner that read: “David Zaslav Pay Your Writers.”

He had assumed control a year earlier, in April 2022, just as Wall Street soured on media companies that were spending wildly to build streaming services to compete with Netflix.

Zaslav inherited a venture bleeding billions of dollars to get into streaming. The merger itself saddled the company with $55 billion of debt. Warner’s stock plummeted.

He and his team spent the first few years slashing divisions, canceling TV programs and contracts, and shelving movies. To further reduce expenses, the company laid off thousands of workers. Hollywood soon viewed Zaslav with derision.

It didn’t help that Zaslav has long been one of the most handsomely compensated executives in America.

There were high-profile stumbles, including jettisoning staff of the tiny Turner Classic Movies channel and an ill-conceived rebrand of its streamer to “Max” before changing the name back to HBO Max.

“The Warner Bros. Discovery merger was a well-intended failure,” Hardart said. “The cable subscriber base shrank at a faster rate than most people had forecast. … Thousands have lost their jobs, the HBO brand has been reimagined and reimagined, films have been mothballed and the future of the Warner Bros. studio is today uncertain.”

Warner Bros. Discovery paid down $20 billion in debt, but $35 billion remains. The debt load has nearly suffocated the company, making it a vulnerable target.

“There was a lot of fixing that David Zaslav and his team had to do,” Bank of America media analyst Jessica Reif Ehrlich said in a recent interview. “It’s been three years of incredibly heavy lifting — but that’s pretty much done now.”

In a note to investors last week, Ehrlich wrote Warner’s strong franchises, including DC Comics, and its voluminous library make it “an extremely attractive potential acquisition target,” one that could fetch $30 a share. Her firm carries a “buy” rating on the stock.

Warner Bros. Discovery Chief Executive David Zaslav and AT&T Chief Executive John Stankey shake hands on May 17, 2021, in New York City.

(Preston Bradford / Discovery)

Last summer, Zaslav announced plans to split the company in two halves.

Zaslav would run Warner Bros., which would consist of the Burbank studios, HBO and the HBO Max streaming service. Longtime lieutenant Gunnar Wiedenfels would helm Discovery Global, made up of the firm’s international businesses and basic cable channels, which face an uncertain future in the streaming era.

Those who know Zaslav believe he’s working to stave off the Ellison takeover, in part, because he wants the chance to bring the company back to its glory, which would ultimately make it more valuable for its investors and prospective buyers.

For Warner management, that’s part of the rub. The Ellisons showed up just as the company was displaying signs of a turnaround, including a hot streak by Warner Bros. that includes “A Minecraft Movie,” Ryan Coogler’s “Sinners,” James Gunn’s “Superman,” Formula One adventure “F1: The Movie,” and horror flick “Weapons.”

In addition, HBO returned to its winning ways at last month’s Emmys, collecting an industry-leading 30 awards, tied with Netflix.

Larry, from left, Megan and David Ellison attend the premiere of Paramount Pictures’ “Terminator Genisys” at Dolby Theatre on June 28, 2015.

(Lester Cohen / WireImage)

Ellison’s bidding was designed to thwart Warner’s planned corporate breakup.

For now, analysts said, Zaslav and the Warner board’s current strategy is solid because they have effectively driven up the stock price, which has doubled to $21 a share since the Ellison’s interest became known in mid-September.

“They are doing the right thing,” Hardart said. “In any sale, you try to beat the bushes and get as many people interested. But at some point the board is going to have to make a decision.”

Added one investor: “They’ve gotten Paramount-Skydance to bid against itself, and that only goes so far.”

Analysts expect Philadelphia giant Comcast, owner of NBCUniversal, and potentially Netflix, Apple or Amazon to take a look at the company’s studio, library and streaming assets.

But many see the Ellison’s Skydance as having the edge.

Paramount, in its recent letter to the Warner board, argued that it was the best and most logical buyer.

“What Skydance offers WBD, in many ways, is what it offered Paramount: The ability to be aggressive and push all aspects of the business in a way that most people or companies that have less capital just can’t do,” Miller said. “They are deploying real capital, and they are being the most aggressive folks in the industry right now.”

Shares of Crown Holdings (CCK +0.04%), the maker of aluminum cans and other packaging supplies, reported better-than-expected results in its third-quarter earnings report, sporting solid growth on the top and bottom lines. It also raised its guidance for the full year.

As of 11:48 a.m. ET, the stock was up 3.7% on the news.

Image source: Getty Images.

Crown Holdings raises the bar

In a fluid environment where tariffs have roiled global manufacturers like Crown Holdings, the company is still managing to deliver growth. In the third quarter, revenue rose 4.2% to $3.2 billion, topping estimates at $3.14 billion.

The company experienced strong growth in Europe, with volume growth up 12% in the European beverage segment, which drove a 27% increase in segment income. Other regions were mixed.

Overall, segment income, which adjusts operating income for one-time charges and intangibles amortization, was up 4% to $490 million, and adjusted earnings per share (EPS) increased 13% to $2.24, which beat the consensus at $1.99.

Today’s Change

(0.04%) $3.93

Current Price

$98.34

Key Data Points

Market Cap

$11B

Day’s Range

$97.47 – $102.85

52wk Range

$75.98 – $109.48

Volume

1.4M

Avg Vol

1.3M

Gross Margin

18.55%

Dividend Yield

0.01%

Crown lifts its guidance

Management said it was raising its full-year forecast based on its performance through the first three quarters of the year. The company now expects adjusted earnings per share of $7.70 to $7.80, up from a previous forecast of $7.10 to $7.50. For the fourth quarter, it sees adjusted EPS of $1.65 to $1.75, which compares to the consensus at $1.58.

Following the report, Jefferies reiterated a buy rating on the stock, calling it “undervalued.”

At a price-to-earnings ratio of less than 13, Crown looks well priced for a category leader that’s growing in a challenging environment.

When Jerome Powell speaks, markets listen. As well they should. Powell serves as the chair of the Federal Reserve Board. As part of this role, he also leads the Federal Reserve Open Market Committee (FOMC), which sets the monetary policy of the U.S.

Powell recently hinted at a monetary policy change that seems positive for the stock market. But should investors actually be worried?

Federal Reserve Chair Jerome Powell answers reporters’ questions at the FOMC press conference on Sept.17, 2025. Official Federal Reserve Photo.

Good news for investors?

Powell spoke last week at the National Association for Business Economics conference held in Philadelphia, Pennsylvania. One of his key points in his address was an update on the status of the Fed’s “quantitative tightening” approach.

Quantitative tightening is the term used to describe when the Federal Reserve reduces the size of its balance sheet. To accomplish this goal, the Fed allows assets such as government-issued bonds to mature, or it actively sells those assets. This usually results in higher long-term interest rates, lower inflation, and a cooling down of an overheated economy.

The opposite of quantitative tightening is quantitative easing. With this approach, the Fed increases the size of its balance sheet. Quantitative easing is an expansionary policy that’s usually associated with a rising stock market.

In his recent remarks, Powell hinted that the Fed is close to ending its program of quantitative tightening. He said:

Our long-stated plan is to stop balance sheet runoff when reserves are somewhat above the level we judge consistent with ample reserve conditions. We may approach that point in coming months, and we are closely monitoring a wide range of indicators to inform this decision.

Powell always chooses his words deliberately and can often be somewhat ambiguous. However, the takeaway from his comments is that the Fed’s quantitative tightening policies could be almost over. This would seem to be good news for investors.

A more complicated picture

I chose those words deliberately and left room for ambiguity just as Powell likes to do. Why? Because there’s a more complicated picture if the Fed stops its quantitative tightening policies.

For one thing, the end of quantitative tightening doesn’t necessarily mean a return of robust quantitative easing. Some saw quantitative easing as something akin to steroids for the economy and stock market, while quantitative tightening was like a depressant. Using that analogy, discontinuing taking a depressant doesn’t boost strength in the same way as frequently taking a steroid might.

It’s also important to understand that the end of quantitative tightening could be a warning sign about the economy, and by extension, corporate earnings. The Fed doesn’t reduce the size of its balance sheet when the economy is weak. Powell’s remarks, indicating that quantitative tightening could soon taper off, might reflect significant underlying concerns by the Fed about the health of the U.S. economy, despite his seemingly positive statement last week that the economy “may be on a somewhat firmer trajectory than expected.” As the economy goes, so goes the stock market — usually.

Finally, there is a real risk that ending quantitative tightening could backfire. One of the main goals of the policy is to fight inflation. If the Fed returns to expanding its balance sheet, inflation could roar back. The effects of the Trump administration’s tariffs could add fuel to the fire, at least initially. Powell acknowledged in his speech at the National Association for Business Economics conference, “There is no risk-free path for policy as we navigate the tension between our employment and inflation goals.”

The Fed could find itself in a situation where it has to reverse tactics, which would likely create significant uncertainty for the stock market. If there’s anything investors hate, it’s uncertainty.

Should investors worry?

I think celebrating the Fed bringing its quantitative tightening policies to a halt is premature. However, it’s also too soon to worry about the potential impact on stocks from the decision.

We don’t know yet how quickly the Fed will begin increasing the size of its balance sheet. We don’t know how aggressively it will move if and when quantitative tightening comes to an end. We don’t know what else will be happening with the economy or the stock market.

What we do know, though, is that the stock market rises over the long term. Anyone with an investing time horizon measured in decades shouldn’t have anything to worry about, regardless of what the Fed does or doesn’t do in the near term.

American Express (AXP 0.70%) is a global payments company with a different model from the card networks most investors know. Unlike Visa and Mastercard, which mainly run transaction networks and avoid lending, American Express issues cards, extends credit, and earns meaningful fee income from premium customers. That difference mattered on Friday, when shares jumped after the company posted strong third-quarter results and lifted its full-year outlook.

Is this move noise or the start of a repricing toward peer-like valuations? I think the latter. With spending and fee income looking good and credit holding steady, it wouldn’t be surprising to see the stock’s valuation multiple expand significantly over time, catching up with the valuation multiples of Visa and Mastercard.

Image source: Getty Images.

Impressive results

It wasn’t surprising to see shares jump following the release of the company’s latest financial results. Third-quarter revenue rose 11% year over year to $18.4 billion, and earnings per share increased 19% to $4.14. Card member spend growth accelerated to 9% (up from 7% growth in Q2). Management also raised full-year guidance, saying it expects 9% to 10% revenue growth and earnings per share of $15.20 to $15.50.

Driving the quarter, the company’s cardmember fee income climbed 18% year over year as more customers adopted its premium cards, which offer travel and lifestyle perks in exchange for annual fees. Additionally, net interest income rose 12%.

Credit metrics look good, too. American Express’s provision for credit losses declined year over year on a lower reserve build. And the company’s net write-off rate held at 1.9%, flat from a year ago and from the prior quarter. For a credit card issuer that keeps credit risk on its own balance sheet, steady write-offs and a lighter reserve build point to disciplined underwriting even as spend grows rapidly.

What makes American Express different

Of course, American Express doesn’t differentiate itself from Visa and Mastercard just by extending credit and charging substantial card fees across its flagship products. The company’s value proposition in the premium space is perhaps the company’s greatest edge. This is fresh on investors’ minds because American Express recently refreshed its U.S. consumer and business Platinum products — and it’s working; new U.S. Platinum account acquisitions in the three weeks following the refresh doubled versus pre-refresh levels, management said in its third-quarter update. Considering that the refresh came with a substantially higher annual fee, that kind of customer response suggests pricing power with the customers who spend the most, use travel benefits, and stay loyal.

Driving home just how premium American Express’s cardmembers are, they spend an average of three times more on their cards than the average spend per card on other networks.

Valuation still trails far behind Visa and Mastercard

Even after the rally, American Express trades at a lower price-to-earnings multiple than the pure networks Visa and Mastercard. The two peers earn higher valuations for their capital-light models, which carry less credit risk and produce steady cash flow. That premium makes sense.

Depending on how you look at it, however, there are also reasons that American Express may deserve a premium. Visa and Mastercard may take on less risk, but American Express participates in more of the profit pool per dollar of spend and has more control over the customer’s overall experience — an advantage that is likely key to helping the company cater to higher spenders.

Ultimately, if American Express can show that its approach is leading to a better customer experience, including higher engagement and greater lifetime customer spend while maintaining good credit metrics, investors may be willing to narrow the gap between American Express’s valuation multiple and its pure network peers.

Of course, being an integrated payments company requires carefully balancing underwriting and incentives to bolster cardmember spending. A surprise rise in delinquencies would pressure earnings. Likewise, a slowdown in the macroeconomic environment could hit discount revenue, customer acquisition trends, and even lending. These factors could keep the valuation discount in place longer than bulls expect.

Still, there’s a lot to like — especially given the stock’s fair price-to-earnings multiple of about 23. This compares to Visa and Mastercard’s price-to-earnings ratios of 34 and 38, respectively. With strong financials in the context of its valuation, American Express stock looks compelling. Revenue is growing at double-digit rates, spend is accelerating, and fee income tied to its premium cards is doing the heavy lifting. Management’s playbook of regularly refreshing its products and deepening engagement while broadening acceptance shows up in the numbers and in guidance.

If American Express’s momentum persists, a narrower valuation gap with Visa and Mastercard makes sense. Friday’s surge looks less like a spike and more like the start of a reset in how investors price this franchise. After years of consistent growth and strong credit metrics, investors might start seeing the company’s integrated payment model as a key competitive advantage worthy of a significantly higher premium.

Nvidia (NVDA -0.31%) stock has been a fantastic performer over the short and long terms. Shares of the artificial intelligence (AI) chip and infrastructure leader have returned 1,440% and 26,960% over the last three years and decade, respectively, as of Friday, Oct. 17. These performances have transformed a $1,000 investment into $15,400 and $270,600, respectively. By comparison, one grand invested in the S&P 500 index has turned into $1,894 in three years and $3,910 in 10 years.

With Nvidia stock’s eye-popping gains, it’s easy to wonder if you missed your chance at buying shares. The answer is no, in my view, as Nvidia stock has many years of great performance left.

There are two reasons for my optimism. First, the AI revolution is still in its early stages. Second, Nvidia’s graphics processing units (GPUs) are the gold standard for processing AI workloads, and there is no indication that they’re in danger of losing that status, at least not for some time.

Below are my prediction ranges (a best case and a base case) for Nvidia stock’s price in about five years, or by the end of 2030. My estimates are built upon data provided by Nvidia’s CEO and CFO on the company’s most recent quarterly earnings call. (Nvidia’s earnings calls are chock-full of valuable data — and listening to them is worth the time.)

Image source: Getty Images.

Nvidia CFO: “We see $3 [trillion] to $4 trillion in AI infrastructure spend by the end of the decade.”

From CFO Colette Kress’ remarks on Nvidia’s fiscal second-quarter earnings call in late August:

We are at the beginning of an industrial revolution that will transform every industry. We see $3 [trillion] to $4 trillion in AI infrastructure spend by the end of the decade. The scale and scope of these [AI infrastructure] buildouts present significant long-term growth opportunities for Nvidia Corporation. [Emphasis mine.]

Numbers from CEO: 58% to 70% of an AI faciility’s cost goes to Nvidia

From CEO Jensen Huang’s remarks on the fiscal Q2 earnings call:

And so our contribution … is a large part of the AI infrastructure. Out of a gigawatt AI factory, which can go [cost] anywhere from … $50 to $60 billion, we represent about $35 [billion] plus or minus of that.

Huang is saying that a typical 1-gigawatt AI data center or other AI facility costs about $50 billion to $60 billion to build, and that about $35 billion of that cost is for Nvidia’s AI technology.

So, about 58% ($35 billion divided by $60 billion) to 70% ($35 billion divided by $50 billion) of the total cost of an AI facility is the cost of buying Nvidia’s tech.

Putting together the data provided by Nvidia’s CFO and CEO

Kress said the company expects total global AI infrastructure spending to be $3 trillion to $4 trillion annually by the end of the decade. (It’s not clear whether she meant by 2029 or 2030, but I’m using 2030 to be conservative. Moreover, Nvidia just published a presentation that uses the $3 trillion to $4 trillion projection by 2030.)

Of that $3 trillion to $4 trillion, Nvidia stands to take in 58% to 70% of it, according to Huang. This assumes that percentage range remains about the same. This will be part of my “best-case estimate,” but I am also going to calculate a “base-case estimate” that assumes Nvidia’s percentage of total AI infrastructure spend declines moderately, by 20%. This will account for the potential for increased competition by chipmaker Advanced Micro Devices (AMD) and others.

Revenue from AI infrastructure spend that Nvidia should generate in about five years:

• Best-case estimate: 58% to 70% of $3 trillion to $4 trillion = $1.74 trillion to $2.8 trillion.
• Base-case estimate: 46% to 56% (I chopped 20% off the percentages in the best-case range) of $3 trillion to $4 trillion = $1.38 trillion to $2.24 trillion.

Calculating my Nvidia stock price target ranges for 2030

Now, I’ll use the numbers calculated above to come up with price target ranges for Nvidia stock in about five years. Two additional data points needed:

• Nvidia stock’s closing price on Oct. 17: $183.22.
• Nvidia’s AI-driven data center revenue was $41.1 billion (of its total revenue of $46.7 billion) in its most recently reported quarter (fiscal Q2, ended July 27). This equates to an annual run rate of $164.4 billion ($41.4 billion X 4).

Nvidia stock best-case price target in five years: $1,942 to $3,115.

1. Nvidia’s projected AI infrastructure revenue in five years: $1.74 trillion to $2.8 trillion.
2. Nvidia’s AI infrastructure revenue currently: annual revenue run rate of $164.4 billion.
3. Step 1 numbers divided by Step 2 number: 10.6 to 17.0. This means Nvidia’s annual data center revenue should increase by 10.6 to 17.0 times in 5 years.
4. Nvidia stock price at market close on Oct. 17: $183.22.
5. Valuation assumption: I am assuming that Nvidia stock’s earnings-based valuation will remain the same in five years. That’s because its valuation is reasonable now given its growth and projected growth dynamics, in my view. (Trailing and forward price-to-earnings (P/E) ratios are 51.5 and 28.7, respectively.)
6. The above assumption means the conversion from revenue growth (Step 3 numbers) to stock price growth will be straightforward.
7. $183.22 X 10.6 to 17.0.
8. Stock price target in five years: $1,942 to $3,115.

Nvidia stock base-case price target in five years: $1,300 to $2,125.

1. Nvidia’s projected AI infrastructure revenue in five years: $1.38 trillion to $2.24 trillion.
2. Nvidia’s AI infrastructure revenue currently: annual run rate of $164.4 billion.
3. Step 1 numbers divided by Step 2 number: 8.4 to 13.6. So, Nvidia’s annual data center revenue should increase by 8.4 to 13.6 times in five years.
4. Nvidia stock price at market close on Oct. 17: $183.22.
5. Valuation assumption: I am assuming that Nvidia stock’s earnings-based valuation remains the same in five years.
6. The above assumption means the conversion from revenue growth (Step 3 numbers) to stock price growth would be straightforward.
7. BUT, I’m going to assume that the data center platform’s profitability declines modestly due to the possibility of increased competition. I can adjust the factors in Step 3 down by 15% to account for this since I had been assuming a straightforward relationship between revenue, earnings, and price target growth.
8. [8.4 to 13.6] x [85%] = 7.1 to 11.6.
9. $183.22 X 7.1 to 11.6.
10. Stock price target in five years: $1,300 to $2,125.

Why there is upside to both these target ranges

I only considered Nvidia’s data center market platform growth when calculating my price targets. That’s because this AI-driven platform accounts for the vast majority of the company’s revenue and earnings — and stock price gains are usually driven by earnings growth.

In the first half of the current fiscal year, the data center platform accounted for 88% of Nvidia’s total revenue. And it accounted for an even higher percentage of total earnings. That percentage is unknown because management does not break out earnings or other profitability metric by platform. But management has said that its data center platform is more profitable than its overall business. So, the data center platform probably accounts for in the mid-90% of total earnings.

If one or more of the company’s other market platforms (gaming, professional visualization, and auto) grows revenue and earnings tremendously over the next five years, that should be upside for my price targets. The auto platform has the potential to be a big winner over the next five years due to driverless vehicles steadily progressing toward legality. Nvidia’s end-to-end AI-powered driverless tech platform is widely adopted.

Caveat about the economy and overall stock market performance

My estimates assume the U.S. economy remains in at least a minimal growth mode and the stock market remains in a bull market for much of the next five years.

I don’t think a mild and relatively brief recession would derail my Nvidia stock price targets, at least not by much, but a deep or long-lasting recession and long-lasting bear market would almost surely derail them.

My wrap-up

Nvidia stock best-case price target in five years: $1,942 to $3,115. (Of course, the stock would most likely split before it reached these levels, but the underlying growth remains the same.) This equates to Nvidia’s stock price increasing by 10.6 to 17.0 times. It also equates to a compound annual growth rate (CAGR) of 60% to 76%.

Nvidia stock base-case price target in five years: $1,300 to $2,125. This equates to Nvidia’s stock price increasing by 7.1 to 11.6 times. It also equates to a CAGR of 48% to 63%.

Taken together, the Nvidia stock price target range in five years is $1,300 to $3,115.

Planet Labs (PL 3.58%) stock had a good start to the trading week on Monday. That’ll happen when an analyst increases their price target by more than 30%, which is what occurred before the market opened that morning. Planet Labs enjoyed an over 3% lift to its share price as a result, which outpaced the 1.1% rise of the bellwether S&P 500 (^GSPC 1.07%).

A 33% boost

The pundit responsible for the raise was Needham’s Ryan Koontz, who now feels Planet Labs is worth $16 per share; he previously placed a $12 price target on the stock. In making the change, Koontz maintained his buy recommendation on the shares.

Image source: Getty Images.

According to reports, the analyst made his change on the basis of presentations made during the company’s investor day. He wrote that management emphasized its strategic focus on satellite services arrangements. The company is also encouraged by what it expects to be rising defense budgets from governments around the world.

Given all that, Koontz raised his estimates modestly for Planet Labs’ fiscal 2027, which begins early in calendar year 2026.

Growth in the ether

Planet Labs’ main activity is the provision of detailed geographic data on Earth from a network of satellites. It’s still consistently loss-making, however, despite some impressive revenue growth. It’s therefore a risky investment, and should only be considered by investors comfortable with such plays.

Bank holding company HBT Financial (HBT 4.15%) published its latest set of quarterly figures Monday morning, and investors were clearly impressed by the results. They pushed up the company’s stock price by a bit over 4% in the trading session, a rate that was several times the 1.1% gain of the benchmark S&P 500 index.

Growth where it counts

For HBT’s third quarter, the company earned $59.8 million in total revenue, which was up from the $56.4 million in the same period of 2024. Non-GAAP (adjusted) net income also saw a rise, advancing by 6% year over year to just under $20.5 million, or $0.65 per share.

Image source: Getty Images.

On average, analysts tracking HBT’s stock were modeling $0.62 per share for profitability. It wasn’t clear what they were estimating for revenue.

In the earnings release, HBT pointed to its asset quality as being a key factor in its growth during the period. The company’s ratio of non-performing assets to total assets was less than 0.2% for the period.

A boost in borrowing

The growth of loans also helped drive those fundamentals higher. On an annualized basis HBT’s loans rose by more than 6%, which the company attributed to what it describes as “higher loan pipelines.”

HBT showed discipline during the quarter, and that loan growth figure indicates it knows how to advance that crucial part of its business. The bullish investor response to its performance seems justified.

It seems as if all eyes are on Oklo (OKLO 1.39%) right now. Shares have surged in value by more than 700% since April. But when you look closer, Oklo’s entire industry is skyrocketing. Nuscale Power, another company focused on small modular nuclear reactors, has seen its valuation nearly quadruple since April.

Why are stocks like Oklo and Nuscale rising exponentially? There’s one primary factor to be aware of now for investors to consider.

Small-scale nuclear power may soon be a reality

For decades, small modular nuclear reactors have been relegated only to science fiction. In theory, the technology makes a lot of sense. Small modular reactors, commonly referred to as SMRs, can be deployed anywhere in the world, even in remote locations without any road access. Once built, they can produce fairly affordable power with minimal carbon emissions. And they don’t have as many issues with generation intermittency as other renewable energy sources like wind or solar.

Companies like Oklo and Nuscale, however, claim that they are just a handful of years away from constructing the world’s first commercial SMRs. Nuscale is already certified by the Nuclear Regulatory Council in the U.S. Oklo is currently in the application process. If successful, this industry could upend the global energy paradigm, delivering low-cost, low-carbon fuel at any scale, anywhere in the world.

Image source: Getty Images.

Here’s the problem: We still don’t know if what these companies are promising is even possible. Neither Oklo nor Nuscale has any existing orders from customers. And analysts are ready to point out the industry’s consistent failures over the years.

Many of these failures weren’t technological, but simply a matter of cost, with huge cost overruns the norm throughout history. “The technical and extreme cost challenges of SMRs has been known and widely reported on for years, raising the question of why the hype continues to grow,” observes Jim Green, a member of the Nuclear Consulting Group.

As one of the leading semiconductor companies, Broadcom (AVGO -1.24%) has handily outperformed the market recently. It’s up 51% year to date (as of Oct. 17), while the S&P 500 index has risen 13%.

Following such a rally, this might not seem like the ideal time to invest in Broadcom — the stock is trading near its all-time high. Given the tech giant’s growth, however, its stock can continue to climb. Here’s one reason why.

Image source: Getty Images.

A growing list of high-value partnerships

On Oct. 13, Broadcom and OpenAI, the developer of ChatGPT, announced a partnership on 10 gigawatts of custom artificial intelligence (AI) accelerators. Broadcom will be helping OpenAI design its own custom chips, and this is just the latest of several AI companies that are working with Broadcom for that purpose.

Broadcom makes custom AI chips for three major hyperscalers, believed to be Alphabet, Meta Platforms, and ByteDance, the parent company of TikTok. It’s seeing increasing chip demand from these companies, and CEO Hock Tan has also mentioned a fourth major customer that has placed $10 billion worth of orders. While there was speculation this mystery customer was OpenAI, Broadcom has now said that’s not the case.

Broadcom’s share price has been soaring, but it’s not fueled by hype. Revenue is on the rise, particularly its AI revenue, which increased 63% year over year to $5.2 billion in Q3 2025. Tech companies are increasingly turning to Broadcom for custom chips that better fit their needs and to avoid being overly reliant on graphics processing units (GPUs) from Nvidia.

During Broadcom’s last earning call, Tan mentioned that the company has an order backlog of over $110 billion, an indicator that its excellent revenue growth should continue. Don’t let the valuation deter you — Broadcom’s crucial role in AI development makes it one of the stronger tech companies to invest in.

Earnings season is upon us, and it’s possible that some stocks could make some large movements following their quarterly announcements. One that I’ve got my eye on that has significant momentum is Alphabet (GOOG 0.86%) (GOOGL 0.82%). Since reporting Q2 earnings on July 23, Alphabet has received several positive developments, including a judge’s decision not to seek a breakup of Alphabet’s core business.

The good news sent shares soaring, with the stock up over 30% since reporting Q2 earnings. That’s a monstrous move for a large company like Alphabet (it’s currently the fourth-largest company in the world and recently crossed the $3 trillion valuation mark for the first time), but can it continue?

I think management’s Q3 outlook could be another catalyst for the stock to go higher, and buying it before it reports earnings on Oct. 29 is a smart move.

1. Persistent advertising growth

Throughout most of 2025, the consensus is that Alphabet’s primary property, the Google Search engine, was in trouble. Everyone was worried about how it would fare against generative AI competition, but it turns out it will be just fine. Google’s revenue growth has been resilient even in the face of rising competition from generative AI models, with its revenue growing at a 12% pace in Q2.

Part of the reason for this growth is that Google has incorporated AI search overviews into every Google search. This results in a hybrid search experience, combining traditional search with a generative AI-powered one. Management also commented that the AI search overview has about the same monetization as a standard search, so it’s not losing any money on this switch either.

If Alphabet reports growing Google Search revenue during this quarter, it will confirm that Google is continuing to excel even when everyone assumed that it couldn’t. With Alphabet’s core business doing well, I think it makes the stock a great buy.

2. Rising cloud computing demand

Another exciting area for Alphabet is its cloud computing division, Google Cloud. Cloud computing is one of the fastest-growing industries around, and is benefiting from a general migration to the cloud alongside rising AI demand. Google Cloud has become a great partner in this realm and has won business from OpenAI (the makers of ChatGPT) and Meta Platforms (META 0.82%).

While Google Cloud isn’t as large as some of its competitors, it’s growing at a healthy rate, with revenue rising 32% year over year in Q2. It’s also dramatically improving its operating margin, increasing from 11% last year to 21% this year. Investors are going to want to see this trend continue, and if it does, the stock could respond positively as a result.

3. Alphabet has a reasonable valuation

Lastly, Alphabet is still valued at a discount to its peers. Despite having an impressive run over the past few months, Alphabet still trades at a discount to all of its big tech peers from a forward price-to-earnings (P/E) standpoint.

AMZN PE Ratio (Forward) data by YCharts

However, after its monstrous run, it’s extremely close to swapping places with Meta Platforms. Still, Alphabet is trading at a discount to others like Microsoft (MSFT 0.50%) and Apple (AAPL 2.04%). If all companies had an equal valuation, Alphabet would actually be the world’s largest because it generates the most net income out of all of them.

AMZN Net Income (TTM) data by YCharts

However, that’s not the way the stock market works, but it does give Alphabet an edge in future investments, as it has significant cash flows that it can buy back stock with, invest in AI, or potentially acquire a business.

Regardless, Alphabet is a highly profitable business with a reasonable valuation that’s growing at a healthy pace. I still think there’s plenty of room for the stock to run, and another catalyst could arrive when it reports earnings on Oct. 29. By buying now, investors can ensure that they get in on a potential pop following the earnings announcement.

Quantum computing pure-play stocks have been on an unbelievable run over the past few weeks. One year ago, Rigetti Computing (RGTI -3.01%) was essentially a penny stock, trading for less than $1 per share. Now, it’s worth nearly $50 per share. A huge chunk of that growth has come recently, as Rigetti Computing traded for about $15 at the start of September.

There have been numerous headlines that have driven Rigetti Computing’s stock higher over the past few weeks, and after these unbelievable returns, some may be wondering if it’s time to take some profits and move on. However, should Rigetti Computing continue going higher, investors will miss out on some lucrative returns.

So, which course of action is the best?

Image source: Getty Images.

Rigetti Computing has soared on a few pieces of news recently

Rigetti Computing is a quantum computing pure play and has no backup business. For Rigetti, it’s quantum computing supremacy or bust. This is no easy feat, as the quantum computing space is filled with other strong competition like Alphabet and International Business Machines (IBM). Both have nearly unlimited resources compared to Rigetti, which makes this uphill climb even more challenging.

However, there are signs that Rigetti will be just fine. Just recently, it announced that it has sold quantum computing systems to two customers for about $5.7 million. One was to an Asian manufacturing company, while the other was a California physics and AI start-up. This shows Rigetti Computing already has a competitive offering for clients, as these two likely shopped around for other options before settling on Rigetti’s Novera quantum computer.

Another headline that caused Rigetti’s stock to pop was JPMorgan‘s announcement that it was investing up to $10 billion in four areas, one of which is quantum computing. This caused shares across the sector to pop, which has me worried that the quantum computing sector may be getting too hot.

In addition to quantum computing, JPMorgan was also planning on investing in supply chains and advanced manufacturing, defense and aerospace, and energy. There are a lot of mouths to feed in those investment sectors, and it’s not like JPMorgan is going to dump all $10 billion into quantum computing stocks. Furthermore, there was no specific announcement that JPMorgan would invest in Rigetti Computing; it was just that it was interested in investing in the sector.

After the pop, Rigetti is a $15 billion company, so even if it received a $1 billion investment from JPMorgan (which is extremely unlikely for JPMorgan to spend 10% of its funds on one company), it would only amount to a small stake in the business.

I think this displays how overheated the quantum computing investment market is getting, as we’re still a ways away from quantum computing being adopted at a widespread scale.

Rigetti Computing thinks we’re still years away from a large quantum computing market

Most quantum computing competitors point toward 2030 as the year when quantum computing will start to become a viable technology. Before 2030, Rigetti estimates that the annual value for quantum computing providers is about $1 billion to $2 billion, mostly fueled by government labs and other research institutions. From 2030 to 2040, the market heats up quite a bit, with Rigetti Computing estimating $15 billion to $30 billion.

If we estimate that the market will reach $30 billion in annual value by 2035, Rigetti captures a 90% market share (similar to what Nvidia has done in the AI world), and it can deliver a 50% profit margin (what Nvidia has accomplished), that would give Rigetti $6.75 billion in annual profits. If we apply a 40 times earnings multiple on that, it would indicate Rigetti would be valued as a $270 billion company. That’s more than a 10-bagger from today’s levels, so if Rigetti wins the quantum computing arms race and takes significant market share, there is still plenty of upside left in the stock.

However, there’s likely to be a large market drawdown sometime between now and 2035, and I’ll likely stay patient with investing in quantum computing stocks until then. I wouldn’t be surprised to see this upward trend continue for the stocks, but that means a bubble could be forming. I don’t think it’s a bad idea to trim some of your quantum computing stocks to take a quick win, as it is a good combination of letting your winners run while also being prudent about the rapid rise of these stocks that are still years away from profitability and viability.

Shares of SoFi Technologies (SOFI -0.24%) have been on an unbelievable run. During the past year, they have soared 166% (as of Oct. 17). The tech heavy Nasdaq Composite is up 24% during the same period.

SoFi has been putting up strong financial results. And the market has noticed, viewing the business in a much more optimistic light.

This fintech stock is now trading not far from record territory, so investors might think it’s too late to put some money to work. But that’s a flawed perspective. Here’s one reason now is a great time to buy SoFi.

SoFi should benefit as rates start to come down

Last month, the Federal Reserve lowered its benchmark fed funds rate. This was the first reduction since December 2024.

Market watchers have been waiting for such a move, as the central bank aims to boost the labor market. Investors expect the Fed will lower the rate two more times before the year is over.

Generally speaking, lower interest rates are good for the economy. They can drive consumer spending and business investment since it becomes cheaper to borrow capital. Consequently, a bank like SoFi can benefit greatly.

It is already growing rapidly. During the second quarter, its revenue surged 43%, with the business adding 846,000 net new customers. Despite a prolonged period of above-average interest rates, SoFi has still been expanding at a brisk pace. The potential for lower interest rates can supercharge that growth.

In the second quarter, the bank originated $8.8 billion worth of loans (combined among personal, student, and home). That figure was up 64% year over year. Besides interest income, the business collects fees for originations. And lower interest rates, unsurprisingly, can jump-start loan originations, which have already been growing at a fantastic clip.

This same situation can help the banking industry as a whole. On the flip side, though, investors need to pay attention to risks. Lower interest rates might spur demand from borrowers to take out loans. However, this can increase default risk on a lender’s balance sheet.

To its credit, SoFi has done a good job targeting a more affluent demographic. For instance, the company’s personal-loan borrowers have a weighted-average income of $161,000 and a weighted-average Fair Isaac FICO score of 743. They should be better able to make their loan payments.

“The health of our consumer remains strong, and we’re not seeing any signs of weakness,” Chief Financial Officer Chris Lapointe said during the second-quarter earnings call.

The business is poised to continue growing its profits

A reduction in interest rates can not only help SoFi generate more revenue, but it can also increase the company’s profits. It first became profitable on the basis of generally accepted accounting principles (GAAP) in the fourth quarter of 2023. Since then, the bottom line has expanded in an impressive fashion.

In 2024, SoFi reported $227 million in adjusted net income; management expects the company will post $370 million in 2025. And Wall Street analysts on average anticipate earnings per share will increase 77% in 2026 and 36% in 2027.

This is a very exciting outlook for shareholders. It highlights that SoFi operates with a very scalable business model, which is helped by the fact that it doesn’t carry the overhead of physical bank branches. It would make sense that SoFi’s earnings would grow at a faster clip than the top line.

And that can continue driving the stock higher. Value investors might hesitate, with the shares trading at a forward price-to-earnings (P/E) ratio of 47. However, don’t ignore the incredible trajectory that SoFi is on. It’s easy to be confident that the stock will do well over the long run given a more accommodative interest-rate environment that can push profits up.

The American dream is something like owning your own home, living comfortably, and seeing your children live happy and productive lives. That dream is even better if you can pass on your wealth to your children, which is basically what’s called generational wealth.

What if you don’t just pass on some money but instead pass on a reliable income stream? That’s what Realty Income (O 1.13%) could let you do. Here’s what you need to know about this unstoppable dividend stock.

The big number is, currently, 30

What does an unstoppable dividend stock look like? That’s pretty easy. It’s a company that manages to increase its dividend every year for decades on end. Real estate investment trust (REIT) Realty Income’s dividend streak is up to 30 years and counting at this point.

Image source: Getty Images.

What’s notable about that streak is that it includes some of the worst economic periods of recent history. And some of the worst bear markets. Realty Income’s dividend grew through the Dot.com crash, the Great Recession (and associated bear market) between 2007 and 2009, and the COVID-19 pandemic. What’s notable is that the Great Recession was particularly difficult for the real estate sector, and the pandemic was devastating to retailers, which make up over 70% of Realty Income’s tenants.

Basically, Realty Income has proven that it has what it takes to survive over the long term while continuing to reward investors with a progressive dividend. But that’s not all. It also happens to have an investment-grade-rated balance sheet, so it is financially strong. And it is geographically diversified, with properties in both the U.S. market and across Europe. While the portfolio is tilted toward retail properties, they tend to be easy to buy, sell, and release if needed. The rest of the portfolio, meanwhile, adds some diversification. All in all, it is a well structured REIT.

Plenty of generational opportunity ahead

The big draw for Realty Income is going to be the dividend yield, which sits at 5.4% or so. That’s well above the 1.2% the S&P 500 index is offering today and the 3.8% or so yield of the average REIT. But, as highlighted above, this isn’t exactly a high-risk investment. Why is the yield so high?

The answer is that Realty Income is a boring, slow-growth business. Over the three decades of dividend growth, the dividend has increased at a compound annual rate of 4.2%. That’s above the historical growth rate of inflation, so the buying power of the dividend has increased over time. But all in all, this is not an exciting stock to own and, frankly, isn’t meant to be. The company trademarked the nickname “The Monthly Dividend Company” for a reason: The REIT’s goal is specifically to be a reliable dividend stock.

There’s no reason to believe it will be anything but reliable in the future. Notably, it is the largest net-lease REIT, giving it an edge on its competitors when it comes to costs and deal making. Management has also been diversifying the business with the goal of increasing the number of levers it has to pull to support its slow and steady growth. None of its efforts involve undue risk, either. Slow and steady is the goal, but so far that’s worked out very well for dividend investors.

A simple and generational proposition

What you are getting when you buy Realty Income is a boring dividend stock that will pay you well to own it. And when the time comes, you can pass that income stream on to the next generation. Building generational wealth is a great thing, but just handing on a pile of money isn’t the only way to do it.

Imagine living a comfortable retirement with the monthly dividends you collect from Realty Income. And while you do that, you can think about how much easier the lives of your children will be when they collect that income instead of you.

Nvidia (NVDA 0.86%) has been one of the most successful stocks in the artificial intelligence (AI) arms race, rising 1,130% since it began at the start of 2023. This has delivered long-term investors phenomenal returns, but there’s a new, exciting investment trend in town that could disrupt how investors view Nvidia’s success.

Quantum computing is one of the most popular industries to invest in, and its stocks have surged over the past few months as investor sentiment surrounding the industry has improved. One of the most popular options is IonQ (IONQ -3.92%), which is no stranger to success. If you’d invested in IonQ instead of Nvidia at the start of 2023, you’d be up 2,150% (at the time of this writing)!

That may have some investors thinking they’ve backed the wrong horse in the computing race. So, is it time to move on from Nvidia and scoop up shares of IonQ? Let’s find out.

Image source: Getty Images.

Nvidia and IonQ are similar businesses

At their core, Nvidia and IonQ are quite close in terms of business pursuit. Nvidia makes graphics processing units (GPUs) alongside other equipment to optimize their performance. GPUs have become the gold standard in high-performance computing applications such as artificial intelligence, drug discovery, engineering simulations, and cryptocurrency mining. Their unique ability to process multiple calculations in parallel makes them a computing powerhouse, and AI hyperscalers have widely deployed them to train and run generative AI models.

IonQ appears to be a much earlier version of Nvidia, focusing on quantum computing rather than traditional computing methods. It’s developing a full-stack solution that provides clients with everything they need to run a quantum computer. Once quantum computing becomes mainstream, many believe it can have widespread use cases in applications like AI training and logistics network improvements. This could lead to a massive market opportunity, similar to what Nvidia experienced at the start of the AI arms race.

However, we’re still a ways away from quantum computing becoming relevant. IonQ and many other quantum computing companies point toward 2030 as the year when quantum computing will become a commercially viable technology. That’s five years out, and there’s still a lot of time for things to go wrong for IonQ (or go right).

IonQ competitor Rigetti Computing estimates that the annual value for quantum computing providers will reach $15 billion to $30 billion between 2030 and 2040. Should IonQ replicate Nvidia’s success by 2030, it could still have room to grow between now and then.

If we assume that the market reaches $15 billion annually in 2030 and IonQ replicates Nvidia’s dominant 90% market share and 50% profit margin, IonQ would be producing profits of $6.75 billion. At a 40 times earnings valuation, that would indicate IonQ could be a $270 billion company, more than a 10x from today’s $23 billion valuation.

But is that enough to warrant selling Nvidia shares to invest in IonQ?

Nvidia has a growth trend of its own

Over the next few years, capital expenditures relating to AI data centers are set to explode. Nvidia estimates that total capital expenditures in 2025 will total $600 billion, but reach $3 trillion to $4 trillion by 2030. If that plays out like Nvidia projects, the total amount of money spent on data center capital expenditures will rise at a compound annual growth rate of 42%. If Nvidia’s growth directly follows that trajectory, that means its stock could rise nearly 6 times in value.

So, which is more likely: Quantum computing becomes viable, IonQ establishes a dominant, Nvidia-like market share and achieves incredibly high margins, or Nvidia’s growth follows widely accepted AI spending trends? I think it’s more likely that the AI arms race continues in its current form, making holding on to Nvidia shares a smart decision. After all of the quantum computing investment hype, I think it’s time for investors to take a break from this sector and focus on some companies that have actual money flowing into them, rather than quantum computing-specific businesses like IonQ.

What happened

According to a filing with the Securities and Exchange Commission dated October 17, 2025, investment management company Capricorn Fund Managers Ltd established a new position in Waystar (WAY 0.46%), acquiring 505,122 shares. The estimated transaction value, based on the average closing price during the third quarter of 2025, was approximately $19.15 million. This addition brings the fund’s total reported positions to 59 at quarter-end.

What else to know

The new position in Waystar accounts for 6.4% of Capricorn Fund Managers’ 13F reportable assets under management. The stock is now the fund’s largest holding by reported market value.

The fund’s top holdings after the filing are:

• WAY: $19.15 million (6.4% of AUM)
• TARS: $14.26 million (4.8% of AUM)
• MSFT: $14.15 million (4.8% of AUM)
• VERA: $13.10 million (4.4% of AUM)
• REAL: $12.64 million (4.2% of AUM)

As of October 16, 2025, shares of Waystar were priced at $36.81, up 34% over the one-year period, outperforming the S&P 500 by 20 percentage points during the same timeframe.

Company overview

Company snapshot

Waystar provides a cloud-based software platform for healthcare payments, including solutions for financial clearance, patient financial care, claims and payment management, denial prevention and recovery, revenue capture, and analytics.

IMAGE SOURCE: GETTY IMAGES.

The company serves healthcare organizations as its primary customers, targeting providers seeking to optimize revenue cycle management and payment processes.

Waystar was founded in 2017 and is headquartered in Lehi, Utah, working in the technology sector with approximately 1,500 employees. The company operates at scale in the healthcare technology industry, focusing on streamlining payment processes for healthcare providers through its cloud-based platform.

Foolish take

Capricorn Fund Managers’ new position in Waystar stock merits attention for a few reasons. The investment management company not only deemed Waystar a valuable addition to its portfolio, but the purchase was so big, the stock catapulted to the top of its holdings.

Investing in Waystar makes sense. The business boasts some compelling qualities. It has grown revenue every quarter for the past two years, and the trend continues in 2025.

In Q2, Waystar’s sales rose 15% year over year to $270.7 million. The company expects to hit $1 billion in revenue this year, up from $944 million in 2024.

Waystar also had a solid balance sheet exiting Q2. Total assets were $4.7 billion compared to total liabilities of $1.5 billion. It does have over $1 billion in debt, but the company is slowly paying this down.

The consistent sales growth Waystar is experiencing, and its forward price-to-earnings ratio of about 25, which is reasonable for a fast-growing tech company, explains Capricorn Fund Managers’ big buy of Waystar stock. These factors make the stock a worthwhile investment for the long haul.

Glossary

13F reportable assets under management: The total value of securities a fund must disclose quarterly to the Securities and Exchange Commission (SEC) on Form 13F.

Stake: The ownership interest or investment a fund or individual holds in a company.

Initiated position: When an investor or fund purchases shares of a company for the first time.

Assets under management (AUM): The total market value of investments managed by a fund or investment firm.

Quarter-end: The last day of a fiscal quarter, used for financial reporting and portfolio snapshots.

Outperforming: Achieving a higher return or growth rate compared to a benchmark or index.

Cloud-based platform: Software and services delivered over the internet rather than installed locally on computers.

Revenue cycle management: The process healthcare providers use to track patient care revenue from appointment to final payment.

Denial prevention and recovery: Strategies to reduce and resolve rejected insurance claims in healthcare billing.

Market value: The current worth of an asset or holding based on the latest market price.

Healthcare payments: Financial transactions related to medical services, including billing, claims, and reimbursements.

TTM: The 12-month period ending with the most recent quarterly report.

Florida-based wealth advisory J. L. Bainbridge disclosed a purchase of Eli Lilly and Company valued at approximately $45.6 million for the quarter ended September 30, according to an SEC filing released on Friday.

What Happened

J. L. Bainbridge & Co. Inc. significantly increased its stake in Eli Lilly and Company (LLY -1.94%), acquiring 61,258 additional shares during the quarter. The estimated value of the purchase was $45.6 million based on the average closing price for the quarter. The position was reported in the firm’s quarterly Form 13-F filing with the Securities and Exchange Commission on Friday.

What Else to Know

This buy brings the position to 3.9% of J. L. Bainbridge & Co. Inc.’s 13F reportable assets.

Top holdings after the filing:

• NASDAQ:MSFT: $164.85 million (13.9% of AUM)
• NASDAQ:AAPL: $122.68 million (10.4% of AUM)
• NASDAQ:GOOGL: $116.65 million (9.9% of AUM)
• NYSE:GS: $71.43 million (6% of AUM)
• NYSE:ETN: $59.86 million (5.1% of AUM)

As of Friday’s market close, shares of Eli Lilly and Company were priced at $802.83, down 11% over the past year and far underperforming the S&P 500’s nearly 14% gain over the same period.

Company Overview

Company Snapshot

• Eli Lilly offers a broad portfolio of pharmaceuticals for diabetes, oncology, immunology, neuroscience, and other therapeutic areas, with leading products including Humalog, Trulicity, Jardiance, Verzenio, and Taltz.
• The company generates revenue primarily through the discovery, development, manufacturing, and global sale of branded prescription drugs, leveraging both proprietary research and strategic collaborations.
• It provides pharmaceuticals for chronic and complex diseases worldwide.

Eli Lilly and Company is a global pharmaceutical leader that maintains a diversified portfolio of innovative therapies for high-burden diseases. Its scale, established brands, and strategic partnerships provide competitive advantages in the rapidly evolving healthcare sector.

Foolish Take

Florida-based J.L. Bainbridge & Co. boosted its exposure to Eli Lilly last quarter, purchasing roughly $45.6 million worth of shares even as the stock has endured a difficult stretch. Shares are down 11% over the past year, pressured by valuation concerns and, most recently, political commentary on potential weight-loss drug price cuts. The decline followed remarks by President Donald Trump, who suggested GLP-1 treatments like Lilly’s Mounjaro and Zepbound could face price reductions—a move that briefly sent shares tumbling more than 4% on Friday.

Despite near-term volatility, Bainbridge’s purchase reflects long-term conviction in Lilly’s fundamentals. The pharmaceutical giant remains a dominant player in metabolic and diabetes care, with GLP-1 demand still far outpacing supply. Analysts at BMO Capital Markets called the recent selloff “overdone,” noting that most insured Americans already pay modest out-of-pocket costs for these drugs.

For Bainbridge, whose portfolio is anchored by Microsoft, Apple, and Alphabet, the addition of Lilly underscores a strategy centered on durable growth and innovation-led healthcare exposure. Long-term investors may see current weakness as a potential entry point into one of the most profitable franchises in global pharmaceuticals.

Glossary

Form 13-F: A quarterly SEC filing by institutional investment managers disclosing their equity holdings.
AUM (Assets Under Management): The total market value of investments managed on behalf of clients by a fund or firm.
Reportable AUM: Portion of a fund’s assets that must be disclosed in regulatory filings, such as the Form 13-F.
Top holdings: The largest investments in a fund, ranked by their value as a percentage of total assets.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Stake: The ownership interest or position an investor holds in a company, usually measured in shares or percentage.
Strategic collaborations: Partnerships between companies to jointly develop, market, or distribute products or services.
Pharmaceutical portfolio: The collection of drugs and therapies a company develops, manufactures, and sells.
Underperforming: Delivering a lower return or performance compared to a benchmark or peer group.

Florida-based wealth advisory J. L. Bainbridge & Co. sold 119,376 shares of Biogen (BIIB 0.58%) during the third quarter for an estimated $16.1 million.

What Happened

In a quarterly disclosure filed with the Securities and Exchange Commission on Friday, J. L. Bainbridge & Co. Inc. reported selling 119,376 shares of Biogen (BIIB 0.58%) during the third quarter. The estimated value of the shares sold was $16.1 million, based on the average closing price for the period. The fund now holds just 2,969 shares of Biogen valued at $415,898 as of September 30.

What Else to Know

The sale reduced Biogen to 0.03% of reported U.S. equity assets under management as of September 30.

Top holdings after the filing:

• NASDAQ:MSFT: $164.85 million (13.9% of AUM)
• NASDAQ:AAPL: $122.68 million (10.4% of AUM)
• NASDAQ:GOOGL: $116.65 million (9.9% of AUM)
• NYSE:GS: $71.43 million (6% of AUM)
• NYSE:ETN: $59.86 million (5.1% of AUM)

As of Friday’s market close, shares of Biogen were priced at $143, down 23% over the past year.

Company Overview

Company Snapshot

• Biogen’s portfolio includes therapies for neurological and neurodegenerative diseases, such as multiple sclerosis, spinal muscular atrophy, Alzheimer’s disease, and biosimilars targeting autoimmune disorders.
• The company generates revenue through the discovery, development, manufacturing, and commercialization of branded pharmaceuticals and biosimilars, with a focus on specialty and rare disease markets.
• Biogen serves a global customer base, including healthcare providers, hospitals, and specialty pharmacies treating patients with neurological and rare diseases.

Biogen specializes in therapies for complex neurological and neurodegenerative conditions. With a diversified product suite and a robust pipeline, Biogen leverages scientific innovation and strategic collaborations to maintain its position in high-need therapeutic areas.

Foolish Take

Florida-based J.L. Bainbridge & Co. dramatically scaled back its Biogen holdings last quarter, selling nearly its entire position for roughly $16 million. The firm, known for its long-term focus and balanced growth strategy, now holds only about $416,000 worth of Biogen stock—just 0.03% of its reportable U.S. equity assets.

The timing aligns with Biogen’s mixed performance over the past year. Shares are down 23%, despite a strong second-quarter report showing 7% year-over-year revenue growth to $2.6 billion and raised full-year guidance. The company highlighted sequential growth in Alzheimer’s therapy LEQEMBI, rare-disease drug SKYCLARYS, and postpartum-depression treatment ZURZUVAE, with CEO Christopher Viehbacher calling it “another quarter of strong execution” as Biogen reshapes its portfolio for sustainable growth. Still, the stock has struggled amid investor skepticism fueled by declining sales.

Bainbridge’s near-exit follows other portfolio adjustments—such as trims to Delta Air Lines—as the firm concentrates its holdings in proven large-cap growth names like Microsoft, Apple, and Alphabet. For long-term investors, Biogen’s upcoming October 30 earnings will be a key moment to gauge whether its new drug launches can meaningfully offset the erosion of its older franchises.

Glossary

AUM (Assets Under Management): The total market value of assets a fund or investment manager oversees on behalf of clients.
Quarterly disclosure: A report filed every three months detailing a fund’s holdings, transactions, and other relevant financial information.
Post-trade stake: The number of shares or percentage of ownership remaining after a buy or sell transaction.
Top holdings: The largest investments in a fund’s portfolio, usually ranked by market value or portfolio percentage.
Biosimilars: Biologic medical products highly similar to already approved reference drugs, used to treat various diseases.
Specialty and rare disease markets: Healthcare sectors focused on developing treatments for uncommon or complex medical conditions.
Pipeline: The portfolio of drugs or products a company is developing, from early research to late-stage clinical trials.
Strategic collaborations: Partnerships between companies to jointly develop, market, or distribute products or technologies.
TTM: The 12-month period ending with the most recent quarterly report.

It has been an up and down year for Warren Buffett’s portfolio. Many of his biggest positions have been trimmed aggressively. But according to recent filings, his holding company, Berkshire Hathaway, is loading up on one of Buffett’s favorite stocks. Last quarter, it boosted its position by more than $500 million.

On paper, this stock has it all. It’s priced at a discount to the market, offers a compelling dividend yield, and could generate impressive growth over the next few years.

This has been one of Warren Buffett’s favorite stocks since 2020

Berkshire Hathaway first took a position in Chevron (CVX 0.94%) back in 2020, not long after the nadir of the COVID-19 flash crash. Buffett’s estimated purchase price was around $80. But over the years, he has managed the position aggressively. In early 2021, for instance, just one year after his initial purchase, Buffett slashed his Chevron stake by more than 50%. Towards the end of 2021, however, he began rebuilding his position. Several more purchases and sales occurred in 2022, including the massive acquisition of 121 million shares in the first quarter.

Notably, Berkshire has been a net seller in recent quarters. In six of the past seven quarters, for example, Berkshire has sold more Chevron stock than it purchased. But that all changed this quarter when Buffett purchased nearly 3.5 million shares worth roughly $520 million. It was one of the biggest stock purchases of the quarter for Buffett, giving Berkshire a 7% stake in the entire business.

Why did Buffett load up on this giant oil stock that he knows so well? The numbers below paint a compelling picture.

Chevron stock looks very attractive for certain investors

After several consecutive winning years, the stock market as a whole isn’t obviously a value right now. The S&P 500, for example, trades at 31 times earnings — well above its long-term average. Chevron stock, meanwhile, trades at just 19 times earnings. Revenue growth is stagnant right now, but free cash flow remains high, helping to support a 4.5% dividend yield.

Part of the challenge with Chevron stock right now isn’t under its direct control. Oil prices slid heavily this year, falling under $60 per barrel. Oil inventories continue to rise, with meaningful surpluses expected in 2026 due to rising production globally. In total, it’s a tough place to be for businesses that sell oil.

As an integrated producer, with interests in refining, chemical production, and even energy generation for artificial intelligence applications, Chevron has long been able to manage industry cyclicality with ease. Chevron’s CEO focuses on cost controls and capital efficiency to ensure profits remain stabilized even with low oil prices. But unless those oil prices move higher, expect so-so results from Chevron — a big reason why shares have traded sideways since 2022.

Here’s the thing: Chevron stock is still a very compelling purchase for certain investors. If you’re finding it difficult to find market values, are worried about a potential bear market, or believe geopolitical tensions are about to rise, allowing oil prices to recover quickly, Chevron shares could be a fit. While shares aren’t a steal, they are arguably fairly valued at 19 times earnings. The dividend yield and free cash flow consistency, meanwhile, can help offset losses during a market downturn. And given ongoing geopolitical disputes, it’s not unreasonable to expect sudden shifts in oil demand and supply.

All in all, this looks like a classic move for Buffett in this market environment. He understands Chevron’s business model well, and with a rising cash hoard, it’s clear that he’s finding it difficult to spot market bargains. Chevron is as close to a value stock in today’s environment as it gets.

On October 17, 2025, Sapient Capital LLC disclosed a purchase of 259,392 Eli Lilly and Company (LLY -1.94%) shares, for a total transaction value of $193,028,908.

What Happened

Sapient Capital LLC increased its stake in Eli Lilly and Company by 259,392 shares during Q3 2025, according to a U.S. Securities and Exchange Commission (SEC) filing dated October 17, 2025 (SEC filing). The estimated transaction value was $193.03 million, based on the average closing price for Q3 2025. The fund now holds 1,477,879 shares worth $1.07 billion in Q3 2025.

What Else to Know

Buy activity increased the position to 16.53% of Sapient Capital’s 13F AUM in Q3 2025

Top holdings after the filing:

• LLY: $1.07 billion (16.5% of AUM) as of September 30, 2025
• APP: $906.45 million (14.0% of AUM) as of September 30, 2025
• AAPL: $346.81 million (5.3% of AUM) as of September 30, 2025
• MSFT: $313.49 million (4.8% of AUM) as of September 30, 2025
• GOOGL: $238.99 million (3.7% of AUM) as of September 30, 2025

As of October 17, 2025, shares were priced at $802.83, down 12.46% over the past year; shares have underperformed the S&P 500 by 25.79 percentage points

Company Overview

Company Snapshot

Eli Lilly and Company is a global pharmaceutical leader with a market capitalization of $722.03 billion as of October 17, 2025 and a diversified portfolio of innovative therapies. The company’s strategy centers on advancing high-impact medicines and expanding its reach through scientific innovation and partnerships. Its scale and established presence in key therapeutic areas provide advantages in the healthcare sector.

The company offers a broad portfolio of pharmaceuticals for diabetes, oncology, immunology, neuroscience, and other therapeutic areas, with leading products such as Trulicity, Humalog, Jardiance, and Taltz. It generates revenue primarily through the discovery, development, and global commercialization of branded prescription medicines, leveraging internal R&D and strategic collaborations. It treats patients with chronic and complex health conditions.

Foolish Take

This recent transaction by Sapient Capital, a private wealth advisor, is a notable institutional purchase. Here’s why.

First off, Sapient acquired over 259,000 shares of Eli Lilly, worth around $193 million. That is, of course, a great deal of money. But beyond that, the transaction makes the stock Sapient’s largest overall holding, with about $1.07 billion worth of Eli Lilly stock. In other words, Sapient is significantly increasing its already enormous stake Eli Lilly stock. That demonstrates the fund managers have a great deal of conviction that Eli Lilly stock should perform well.

Average investors may want to take note of this, particularly given Eli Lilly’s recent underperformance against major market indexes like the S&P 500. For example, Eli Lilly stock has lagged the S&P 500 year-to-date. Indeed, it has generated a total return of around 5% in 2025, while the benchmark index has generated a total return of 14%.

One potential headwind for Eli Lilly may be political pressure from Washington. President Donald Trump recently said that his administration will work to cut the cost of brand-name GLP-1s, like Eli Lilly’s Zepbound, to $150 per month — a significant decrease from the rate Eli Lilly currently offers on their direct-to-consumer site. That could cut into the company’s profits which have skyrocketed from $5 billion to nearly $14 billion thanks in part to the introduction of Zepbound in 2023.

In summary, investment advisor Sapient has made a huge bet on Eli Lilly stock, boosting its stake by ~25% and making the stock its top holding. The company’s shares have underperformed this year, and pressure from Washington is increasing for the company to lower the price of its star drug, Zepbound, which could stifle its overall profitability. All in all, it’s a mixed picture for Eli Lilly with significant uncertainty surrounding at least one of its key products.

Glossary

13F assets under management (AUM): The value of securities a fund manager reports to the SEC on Form 13F, typically U.S.-listed equities.
Position: The amount of a particular security or asset held by an investor or fund.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Dividend yield: Annual dividends per share divided by the share price, shown as a percentage.
Forward price-to-earnings ratio: A valuation metric comparing a company’s current share price to its expected future earnings per share.
Enterprise value to EBITDA: A valuation ratio comparing a company’s total value (enterprise value) to its earnings before interest, taxes, depreciation, and amortization.
Stake: The ownership interest or share held by an investor in a company.
Holding: A security or asset owned by an investor or fund.
Buy activity: The act of purchasing additional shares or assets, increasing an investor’s or fund’s position.
Therapeutic areas: Specific categories of diseases or medical conditions targeted by pharmaceutical products.
Strategic collaborations: Partnerships between companies to achieve shared business or research goals.

Nvidia has been the dominant force in the global semiconductor industry thanks to its graphics processing units (GPUs), which have played a critical role in enabling the proliferation of artificial intelligence (AI) applications. The demand for Nvidia’s GPUs has been so solid in the past three years that Nvidia has now become the world’s largest company.

Nvidia continues to rule the AI data center GPU market, facing very little threat from its peers so far. Analysts are expecting its top line to jump by an impressive 58% in the current fiscal year to more than $206 billion. That’s quite impressive for a company of Nvidia’s size. The stock registered respectable gains of 34% on the market this year based on the healthy growth that the company continues to deliver.

However, Nvidia’s stock market performance has been overshadowed by Broadcom (AVGO -1.24%). Broadcom has appreciated 48% this year and looks set to end 2025 on a high note following recent developments. In fact, it won’t be surprising to see Broadcom stock outperforming Nvidia next year as well. Let’s see why that may be the case.

Image source: Nvidia.

Custom AI chips are expected to witness stronger demand in 2026

So far, the majority of AI model training and inference has been carried out by Nvidia’s GPUs. GPUs are general-purpose computing chips with massive parallel computing power, making them ideal for quickly training AI models and moving them into production. OpenAI chose Nvidia’s A100 data center GPUs to train its popular chatbot ChatGPT three years ago.

Nvidia built upon its first-mover advantage and controlled an estimated 92% of the AI data center GPU market at the end of last year. However, the latest deal struck between OpenAI and Broadcom indicates that Nvidia’s influence over the AI chip market could wane. OpenAI will buy custom AI accelerators worth a whopping 10 gigawatts (GW) from Broadcom starting in the second half of 2026.

The deployment is expected to be completed by the end of 2029. This is a massive deal for Broadcom considering that it reportedly costs around $10 billion to build a 1 GW data center. Around 60% of the investment that goes into building a data center is allocated toward chips and other computing hardware, which would put Broadcom’s potential addressable market from each gigawatt of OpenAI’s deployment at $6 billion.

So, Broadcom could be sitting on a potential revenue opportunity worth $60 billion from this deal over the next three years. Broadcom’s custom AI processors have already been in terrific demand as hyperscalers and AI giants such as OpenAI are gravitating toward these chips because of the advantages they enjoy over GPUs.

Custom AI processors are designed for performing targeted tasks, such as AI inference. As a result, they are not only more power-efficient at running those workloads but also enjoy a performance advantage since they don’t need to perform any other tasks. Hence, deploying custom AI processors can help save costs for hyperscalers.

Shipments of application-specific integrated circuits (ASICs) meant for deployment in AI data centers are expected to increase by 45% in 2026, compared to the expected growth of 16% in GPUs. Broadcom is in the best position to make the most of this growth opportunity as it leads the ASIC market with an estimated share of 70%.

Moreover, the new deal with OpenAI along with another $10 billion contract with an unnamed customer that the company announced last month should ensure outstanding growth in Broadcom’s AI revenue next year.

Broadcom’s AI revenue could now increase at a faster pace

Broadcom is on track to end the current fiscal year with almost $20 billion in AI revenue, an increase of 64% from the previous year. The company reported a record revenue backlog of $110 billion at the end of the fiscal third quarter (which ended on Aug. 3). That backlog is likely to have moved higher following the recent deals struck by the company.

Don’t be surprised to see Broadcom’s revenue jumping at a faster pace than the 33% growth that Wall Street is expecting next fiscal year, which would be a nice improvement over the 23% growth it is expected to deliver in the current one. There is a good chance that its revenue growth in the long run could be better than expectations as well.

AVGO Revenue Estimates for Current Fiscal Year data by YCharts

Broadcom was already anticipating a serviceable addressable market worth $60 billion to $90 billion based on the three AI customers it was serving until earlier this year. That addressable market is now much bigger following the OpenAI contract, which opens up the possibility of stronger growth and more upside for Broadcom investors.