September 12, 2025

In the Loop – September 12, 2025

“In The Loop” is designed to give you a short update reflecting major developments, earnings, and investment trends across some core Equity Income and Growth holdings. All clients should be aware that individual buy/sell recommendations will be conveyed directly to you on an individual basis. Have a great weekend.

Markets finished the week on an encouraging note as investors gained confidence in both the economic outlook and the strength of corporate earnings. August’s Consumer Price Index showed continued signs of easing inflation, reinforcing expectations that the Federal Reserve is on track to gradually reduce interest rates. Lower yields supported a broad rally, particularly in growth and technology sectors.

Corporate results also fueled optimism. Oracle highlighted strong momentum in its cloud and AI infrastructure business, underscoring how companies across industries are investing heavily in next-generation technology. Semiconductor and data center leaders pointed to rising demand that will continue to drive innovation and productivity gains.

Overall, markets ended the week on firmer footing, balancing near-term economic uncertainty with longer-term confidence in earnings growth. We remain focused on both the opportunities created by AI-driven innovation and the risks tied to inflation, labor markets, and global trade.

Individual Company Updates

Broadcom (AVGO)

Broadcom surged post-earnings after reporting Q3 revenue of $16B (+22% YoY), driven by 63% growth in AI semiconductor sales and continued VMware momentum. Adjusted EBITDA rose 30% YoY to $10.7B (67% margin), while free cash flow hit a record $7B (44% margin). Management guided Q4 revenue to $17.4B (+24% YoY), with AI chip revenue expected to rise 66% to $6.2B. Broadcom also secured a $10B AI chip order, reportedly from OpenAI, cementing its role as a top custom AI chipmaker and intensifying competition with Nvidia. CEO Hock Tan confirmed his commitment for at least five more years, reinforcing leadership stability.

Alphabet (GOOGL)

Shares jumped after a federal judge spared Google from divesting Chrome in its antitrust case, easing regulatory risks and sparking multiple analyst upgrades. However, the EU fined Google €2.95B (~$3.5B) for adtech practices, which the company plans to appeal, with U.S. officials signaling possible retaliatory tariffs. Separately, Apple may use Google’s Gemini AI in Siri, Safari, and Spotlight starting 2026—potentially deepening Google’s role in iOS. Google also unveiled plans for a new institutional blockchain platform, Google Cloud Universal Ledger, in partnership with CME Group, targeting financial services with trials beginning in 2025.

Oracle (ORCL)

Oracle shares surged nearly 30% after Q1 results highlighted massive forward growth indicators. Revenue rose 12% YoY, led by 28% cloud growth and a 55% jump in OCI. Remaining performance obligations soared 359% to $455B, fueled by multi-billion-dollar AI/cloud deals with OpenAI and Nvidia. CEO Safra Catz projected OCI revenue to grow 77% in FY26 to $18B, with a long-term roadmap targeting $144B by FY30—most of which is already contractually booked. Analysts now view Oracle as the “fourth hyperscaler” and a legitimate contender for a $1T market cap.

Tesla (TSLA)

Tesla provided new updates on its Optimus humanoid robotics program, positioning it as a long-term growth driver alongside EVs and energy. The company highlighted advancements in AI training, dexterity, and real-world testing, noting that Optimus units are already operating within Tesla factories for simple tasks. CEO Elon Musk reiterated his goal of deploying Optimus at scale to address labor shortages and productivity challenges, with the ultimate vision of millions of units in use globally. Tesla believes the robotics business could one day surpass its automotive segment in value, underscoring the strategic importance of AI-driven automation in its future roadmap.

Uber (UBER)

Uber will be added to the S&P 100 in September, reflecting its rising prominence among U.S. mega-cap stocks. Index inclusion is expected to drive billions in incremental passive inflows, boosting liquidity and institutional ownership.

Leidos (LDOS)

Leidos received multiple analyst upgrades, with RBC raising its rating to “Buy” and lifting its target to $210, citing strong execution in Health Services and defense. BofA also boosted its target to $200, pointing to growth drivers tied to the “One Big Beautiful Bill” legislation, spanning veteran health, border security, and autonomous systems.

Amgen (AMGN)

Amgen broke ground on a $600M Center for Science and Innovation at its Thousand Oaks headquarters, uniting researchers, scientists, and engineers in a state-of-the-art facility. Equipped with advanced automation and digital technologies, the center aims to accelerate next-generation therapeutic development. Construction begins in Q3 2025 and is expected to create hundreds of U.S. jobs, reinforcing Amgen’s commitment to domestic R&D and capital investment under supportive policy frameworks.

JPMorgan (JPM)

JPMorgan will launch its Chase digital retail bank in Germany in Q2 2026, its second European market after the UK. The expansion begins with savings accounts, targeting digital-first consumers. Separately, Trimont LLC adopted JPMorgan’s Kinexys blockchain platform for loan payments, highlighting JPM’s leadership in blockchain-enabled finance.

We remain focused on navigating market trends and positioning portfolios for long-term growth and resilience.
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