Could a weird new chip turn today's AI servers into paperweights?
For 67 years, making computer chips has meant one thing: slicing a single sheet of silicon into hundreds of pieces.
But three companies just stopped slicing.
Instead, their new AI chips look like something out of a sci-fi movie — one giant square of silicon the size of a dinner plate, carved from the largest wafer they could find.
One solid super-chip.
And the prototypes already crunch more data in minutes than today's top AI systems handle in days.
Tech forecaster George Gilder believes three specific companies are about to converge on this technology and usher in a new age of computing.
This is the same man who called the iPhone years before launch…
Netflix a decade before it dominated…
And Amazon back when it was "just an online bookstore."
In a way that could make today's AI giants the next BlackBerry...
...and turn AI processors into paperweights.
He's calling these three companies the Trillion Dollar Triangle.
Click here to see what he's seen.
To the future,
Roger Michalski
Publisher, Eagle Financial Publications
Target Shows Strengths, But Analysts Want to See More
Reported by Thomas Hughes. Published: 5/21/2026.
Key Points
- Target posted a strong Q1, with revenue growing 6.7%, adjusted EPS rising 31.5%, and guidance raised above consensus estimates.
- Analysts maintained a Hold consensus despite the beat, with institutions owning nearly 80% of shares and selling in early Q2 posing a key risk.
- Target's biggest long-term threat is continued market share loss to Walmart, Costco, Sam's Club, and BJ's Wholesale Club.
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Analysts responded to Target's (NASDAQ: TGT) May 20 earnings release with mixed sentiment, overshadowing the strengths on display. The company beat expectations and raised guidance, but that was not enough to move the needle on sentiment or price targets, which is what the market wants to see.
The critical takeaway, however, is that Target’s results show it is on the right track with its turnaround and recovery, and the analyst group maintained a bullish, albeit wait-and-see, posture.
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See the stock positioned to solve AI's biggest power crisisWhat they are waiting to see is whether Target can sustain its same-store sales strength. They see risk in tough comps, consumer headwinds, and the fading impact of tax returns, all of which are near-term pressures at best.
A key strength of Target is that it simply isn’t Walmart (NYSE: WMT). Nothing against Walmart, but it is a larger, louder, brightly lit, and often more crowded environment that can lead to exhaustion. Consumers who tire of one store may return to the other, helping support Target’s performance. Reasons consumers choose Target over other retailers include a stronger brand image and a more comfortable in-store atmosphere.
Target Outperforms in Q1 and Raises Guidance: Analysts Yawn
Target had a solid quarter in Q1, growing revenue by 6.7% and topping consensus by 300 basis points (bps). The strength was broad-based, driven by 4.7% in-store comps and 8.9% digital comps, with growth across all categories and channels. Margin trends were also favorable, reflecting the benefits of improving store traffic and operational improvements. Operating margin improved by 70 basis points, accelerating the earnings recovery. Adjusted operating income, the measure of core profitability, grew by nearly 30%, and adjusted earnings per share (EPS) rose 31.5%, including the impact of share buybacks.
Guidance is equally strong and should have warranted a more bullish response from the market. The company raised its revenue and earnings forecasts above the reported consensus, which is likely still conservative. The upshot is that this sets the stock up with a bullish catalyst that may be revealed as soon as the next report. Either way, Target is forecasting growth and margin strength sufficient to sustain capital returns and improve its balance sheet.
Capital returns are a critical factor in 2026, and Target’s story is that those returns are reliable and the safety is improving. Balance sheet highlights include increased cash and assets, reduced inventory and long-term debt, improved equity, and low leverage. Equity increased by 9.6% despite capital returns, including share buybacks, and will likely continue to improve as the year progresses.
Share buybacks aren’t aggressive, but they do reduce the share count incrementally and give investors additional support. The dividend is more substantial, yielding approximately 3.7% with shares near $120, and is reliable based on cash flow and payout history.
Analysts and Institutions Underpin Target’s Rebound
As tepid as the analysts’ response to Target’s release is, their activity still aligns with the bullish trend. MarketBeat tracks 32 analysts with current ratings, and although sentiment remains at Hold, it has been steady and price targets are increasing.
The price target increases weren’t large ahead of the Q1 release, but they were meaningful because they ended the downtrend that had been dominating the market. The likely outcome is that analysts continue to support Target’s stock in the near term, if not help push it higher. Assuming Target follows through on its turnaround and produces solid reports in the coming quarters, analyst forecasts should strengthen as well.
Institutions will be the deciding factor. They own nearly 80% of the stock and were selling in early Q2. If that continues, TGT shares are more likely to move lower, potentially retesting support in the $100 to $115 range. However, a move below that level seems unlikely given the value/yield combination and the outlook for a business recovery. Critical resistance is near $125, reinforced by long-term moving averages, and may not be broken until Target proves it is truly in recovery. That could take more than a single quarter, even after the Q1 strength.
The biggest risk for Target is the loss of market share. Not only has it lost traction to Walmart, but Sam’s Club, Costco (NYSE: COST), and, to a lesser degree, BJ’s Wholesale Club (NYSE: BJ) have also weighed on the business. If Target can’t regain its premier status among consumers, it risks a prolonged decline and eventual bankruptcy, akin to Sears, Toys 'R' Us, and Kmart. This year’s catalysts include increased spending on store remodels, improved merchandise selection, and loyalty programs. All are intended to improve the customer experience and bring traffic back, including through digital channels.
As Broadcom Eclipses $2 Trillion, Private Credit Giants Wants In
Written by Leo Miller. Date Posted: 5/17/2026.
Key Points
- Broadcom has performed exceptionally well as of late, surging to a market capitalization above $2 trillion.
- Amid this, reports have surfaced that the company is in talks to receive tens of billions in private credit funding.
- See what the report signals about Broadcom's outlook and what it could mean for the company's balance sheet.
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Over the past several weeks, semiconductor giant Broadcom (NASDAQ: AVGO) has entered rarified air, with its market capitalization eclipsing $2 trillion. Broadcom is now one of just six companies in the world in this territory, becoming more valuable than giants like Meta Platforms (NASDAQ: META) and Tesla (NASDAQ: TSLA).
Notably, shares fell below $300 in late March, a level not seen since September 2025. Broadcom has since rebounded sharply, closing at or above $430 multiple times in May. Overall, Broadcom shares are now nearing a 50% gain from the March lows.
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Watch the full presentation now before this becomes a mainstream storyAn interesting report recently surfaced about the firm, with potential implications that could be both positive and negative.
According to Bloomberg, the company is in discussions with two alternative asset management giants to receive billions in debt funding.
While the move signals confidence in Broadcom’s outlook for its artificial intelligence (AI) chips, it also raises questions, given the company’s already significant debt load.
Broadcom, Blackstone, and Apollo: Private Credit Eyes AI Infrastructure
Asset management companies Blackstone (NYSE: BX) and Apollo Global Management (NYSE: APO) are reportedly in talks with Broadcom to provide $35 billion in private credit funding. Details around the potential deal are limited, but the funds would reportedly support Broadcom’s AI chip development roadmap.
From Broadcom’s perspective, this suggests the company is highly confident in demand for its chips going forward. $35 billion is no small sum; the agreement would be one of the largest private credit deals ever. It is unlikely that Broadcom would pursue the deal without strong multi-year visibility.
The report also signals confidence in Broadcom’s future from Blackstone and Apollo—lenders who will presumably want to recoup their principal with meaningful interest over time.
Broadcom’s Debt Already Sits Above $60B
Near the end of 2023, Broadcom acquired VMware in a deal worth $69 billion. The acquisition has been a clear success. Since VMware came onto Broadcom’s books in fiscal Q1 2024, its quarterly infrastructure software revenue has increased from $4.75 billion to $6.78 billion. That works out to a strong compound annual growth rate of just under 20%. Broadcom has also significantly improved VMware’s margins, cutting costs while raising prices.
However, the deal also greatly increased Broadcom’s debt. Between fiscal Q4 2023 and fiscal Q1 2024, Broadcom’s total debt nearly doubled from $39.6 billion to $75.9 billion. Notably, Broadcom has made solid headway in reducing its debt since then, with the figure falling by around 13% to $66.1 billion last quarter. Adding $35 billion in private credit financing could push its total debt near $100 billion, far above post-VMware levels.
Still, raw debt levels alone do not tell the full story of Broadcom’s solvency. One key metric of balance sheet health is the Net Debt-to-EBITDA ratio, also known as the leverage ratio.
Balance Sheet Breakdown: Broadcom’s Theoretical Leverage Ratio
Note that: Net Debt/EBITDA = (Total Debt – Cash) / (Quarterly EBITDA x 4)
With $66.1 billion in total debt, $14.2 billion in cash and equivalents, and fiscal Q1 EBITDA of $10.8 billion, Broadcom’s Net Debt/EBITDA ratio is roughly 1.2x. That is healthy. For reference, S&P Global recently evaluated the theoretical health of Texas Instruments' (NASDAQ: TXN) balance sheet after a proposed acquisition. S&P said Texas Instruments would have “a strong balance sheet with net debt to EBITDA comfortably below 1.5x following transaction close.”
Adding $35 billion in debt would push Broadcom’s figure to 2x. While certainly more elevated, that is not particularly problematic. Leverage ratios below 3x are generally acceptable.
Furthermore, it is unlikely that Broadcom would draw down this debt all at once. Additionally, as is common with private credit deals, a significant portion of the debt may never actually appear on Broadcom’s balance sheet. Lastly, Broadcom is growing its EBITDA rapidly. Its last 12 months' EBITDA rose by 54.5% YOY as of last quarter. With strong growth expected to continue, its leverage ratio could improve quickly.
Broadcom Remains on Strong Footing
Overall, if Broadcom were to engage in this private credit deal, its balance sheet would still be in good shape. That makes the idea that Broadcom is considering the deal to pursue growth initiatives not overly worrisome.
Notably, Broadcom shares gained significantly, by around 4.2%, on the day Bloomberg released the report. However, chip stocks in general also showed strength that day, with the iShares Semiconductor ETF (NASDAQ: SOXX) rising more than 5%. At a minimum, this reaction indicates that markets did not view the report as a major negative for Broadcom, which is consistent with this analysis. Still, it will be worth watching how the market reacts should the deal actually materialize.
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