Engineering the AI Revolution: AVGO - ORCL - MU
Why AVGO, MU, and ORCL Are the "Dams" of Global Capital Spending - Strategic Updates on SPX, VIX, TSLA, and AAPL
First of all, I wish a Merry Christmas to those who celebrate it. I hope you enjoy a wonderful time tomorrow with your loved ones.
Last Saturday, I posted nine high-probability setups in the premium section. So far this week, eight of them are moving in the expected direction. For example, NVDA is currently up +4.5% for the week, and SMH has gained +2.3%. PLTR neared a +3.5% move before retracing.
These high-probability setups are focused on mega-cap stocks which I analyze from a fundamental perspective as well. Crucially, each setup includes a clear invalidation level, allowing you to set protection against unexpected moves. This actionable research significantly elevates the value for paid subscribers, not to mention the accuracy rate, which stands at 8 out of 9 this week (or only one invalidated) and 78% over the last four weeks. Don’t think twice: Subscribe to the Premium Plan today, or gift a subscription to someone you know who loves the stock market or crypto space!
This publication consistently analyzes the following securities to provide a broad market perspective and empower your trading decisions:
Indices & Futures: SPX, NDX, DJI, IWM, ES=F, NQ=F
ETFs: SPY, QQQ, SMH, TLT, GLD, SLV, DIA, SH, PSQ
Major Stocks: AAPL, MSFT, GOOG, AMZN, NVDA, META, TSLA, BRK.B, LLY, WMT, AVGO, COST, JPM, PLTR, NFLX
Crypto & Related: Bitcoin, ETH, IBIT, MSTR
Leveraged ETFs: TQQQ, SQQQ, UDOW, SDOW, UPRO, SPXS, URTY, SRTY
As mentioned, I focus on studying large-cap and mega-cap companies, primarily those listed in the S&P 500. My research covers deep fundamental analysis, and these insights generally remain valid for at least a quarter. All previous reports are always available in the Fundamental Library (access here).
Today, we will examine the fundamentals and technical charts for AVGO (Broadcom), MU (Micron), and ORCL (Oracle).
Following that analysis, we will review the SPX and Volatility. Finally, I will break down TSLA and AAPL, which currently present setups I want to detail for you, as they suggest opportunities to monetize the price action.
Let’s begin.
Beyond the Chips: The Infrastructure Triad Defining the Next Supercycle
As the “AI Supercycle” extends into 2026, the market is transitioning from a phase of discovery to one of massive logistical execution. Demand for compute capacity has outstripped supply, creating a landscape where ownership of the critical bottlenecks is the only viable investment strategy. Wall Street consensus has identified five key technologies that will define this year: GPUs, Custom Silicon, High Bandwidth Memory, Sovereign Cloud, and Advanced Networking. Broadcom, Micron, and Oracle control the latter four.
We will cover the financial reality behind the supply shortages. We dissect Micron’s move to HBM3E and its resulting margin explosion, Broadcom’s ability to command premium pricing for its custom accelerators, and Oracle’s aggressive leverage of its balance sheet to capture the overflowing demand for AI training clusters. These firms are not merely riding a wave; they are engineering the dams that capture the value of global capital spending.
The question is no longer if AI will grow more, but which companies possess the operational leverage to monetize it. By stripping away the narrative and focusing on backlog durability, free cash flow conversion, and margin resilience, this fundamental analysis aims to determine if Broadcom, Micron, and Oracle are indeed good-positioned equities to capture the efficiency phase of the AI revolution.
