- This topic has 3 replies, 4 voices, and was last updated 4 weeks, 1 day ago by Darren Sinden.
Be interested to know what people would buy if they could only own one US stock – specifically the split between higher risk tech growth stocks or more established dividend paying stalwarts…
For me it would be Amazon (NASDAQ:AMZN).
Why? Well I’d want a company that operates in many different industries (to reduce my risk) and Amazon fits the bill here.
Today, it operates in a range of areas including online shopping, cloud computing, artificial intelligence (including AI chips), digital advertising, digital healthcare, space satellites, robotics, and self-driving cars.
I’d also want a company that has plenty of long-term growth potential. Looking at those industries above, Amazon certainly has this.
Zooming in on the cloud computing industry, it’s set to grow by more than 20% per year between 2024 and 2030 according to analysts at Goldman Sachs (to hit $2 trillion). Amazon is well placed to capitalise on this growth given that it’s the biggest player in the industry.
It’s worth noting here that Amazon has plans to be a one-stop shop for AI in the future. In the same way that it offers a comprehensive retail shopping platform for consumers today, it plans to offer a comprehensive AI platform for businesses in which all kinds of AI tools are available.
Additionally, I’d want a company that has strong financials and Amazon fits the bill here. This is a company with a strong balance sheet, a high return on equity, and rising profits.
One other thing I like about this stock is the valuation. Currently, the P/E ratio is under 30 and near a historical low.
Put all this together and the investment case looks pretty compelling, in my view.
Indeed.
That’s the tricky part investing in US equities right now.
Many US stocks (not only tech) have gone up so much. Their valuation are at historic highs, which make them vulnerable to earnings disappointments in the year ahead.
If I were to start buying today with a highly defensive view, the universe where I’d pick one candidate would be filled with McDonalds (MCD), Coke (KO), or the rail operator Union Pacific Corporation (UNP). These are steady dividend payers with steady share prices. Defensive plays.
If some tech exposure is needed, I’d look at ASML (ticker:ASML), the dutch-based tech company. The AI-semiconductor boom may lift the stock further as the company holds some deep proprietary technologies. This stock is not cheap, though.
But again no tech stock is cheap these days.
This is a great question and my answer is timely and topical, because my stock pick is Broadcom AVGO US. A $1.95 trillion designer, developer and supplier of semiconductors.
Broadcom’s stock price has risen consistently in recent times its added +630.0% in the last three years for example. But its also delivered on an earnings front with 5 year revenue growth of +128.23%, five year Earnings growth of 113.22%, and five year dividend growth of +99.06%.
Broadcom reported earnings after the close last night(11/12/25)beating on both the top and bottom lines and both operating and free cash flow margins were higher, when compared to last year.
True the stock price sold off in the post market, but to my mind a dip or pull back could present an attractive entry point.
Going forward the markets focus will be on the monetization of Broadcom’s recent deal with Google – for whom it will help manufacture TPU chips, designed to compet5e directly with Nvidia’s AI offerings.
Broadcom confirmed yesterday that Anthropic is among the first customers for the new TPUS the owner of
Claude placed an Order worth $10.0 bln back in September, and has followed that up with a new order worth $11.0 bln.
Broadcom has a lot to shoot for here, and it must deliver on this potential, if it is to keep traders happy. However the firms track record with hardware is excellent, so I am not expecting too many issues, barring any unforeseen problems at TSMCs foundries.
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