Is Most of Your Net Worth Riding On A Single Stock?
If a large share of your savings is tied up in a single company's stock, you're not alone. Maybe it grew over years of equity, came from a business sale, or it's simply a position you've held for a long time.
Whatever your appetite for risk, concentration in a single name is a bet most investors never actually meant to make — and unwinding it well takes planning, especially around taxes.
Right-size the position. If this stock dropped 40% next quarter, what would it do to your plans?
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Holding can feel risky; selling may feel like a tax hit — so it's tempting to do nothing, which keeps it all riding on one stock. You don't have to make the call alone.
Meta Platforms’ Cloud Push: Growth Opportunity Versus AI Concerns
Written by Leo Miller. Article Published: 7/8/2026.
Key Points
- Meta Platforms stock rose 8.8% on July 1 following reports that the company may begin selling excess compute capacity to outside firms.
- Comparisons to CoreWeave and a SpaceX-Alphabet leasing deal suggest Meta's potential cloud business could scale quickly and ease concerns over rising capital spending.
- CFO Susan Li recently said Meta has consistently underestimated its compute needs, casting doubt on how much excess capacity actually exists for the cloud push.
- Special Report: Everyone wanted SpaceX. Smart money wants this.
Shares of Magnificent Seven giant Meta Platforms (NASDAQ: META) recently got a meaningful boost after the company’s potential cloud push moved closer to reality. Shares jumped 8.8% on July 1 after reports surfaced that Meta plans to sell excess computing capacity to third parties.
While the market’s reaction was clearly positive, Meta’s move has both upside and downside for investors to consider. Although a cloud push could become a meaningful source of revenue and profit, it also raises questions about the long-term competitiveness of the company’s AI products.
Positives on Selling Compute: AI Monetization and Spending Signals
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Claim your free guide from Thor Metals Group todayOne of the biggest reasons the market reacted positively to Meta’s cloud computing push is what it could mean for the company’s ability to generate new AI revenue. As Meta rents out its computing capacity to other firms, it may be able to earn significant margins on its capital expenditures (CapEx).
When thinking about Meta’s positioning in the cloud computing space, neoclouds like CoreWeave (NASDAQ: CRWV) offer a useful comparison point. CoreWeave focuses exclusively on AI infrastructure demand, while more established companies like Microsoft (NASDAQ: MSFT) serve both AI and non-AI demand.
With Meta’s AI infrastructure heavily concentrated in graphics processing units, the company would operate in a similar space to CoreWeave. As a result, CoreWeave can provide a glimpse into how much Meta could benefit from entering the cloud computing market.
Last quarter, CoreWeave generated revenue of $2.08 billion. From that, the company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were approximately $1.2 billion. Achieving something similar could provide a meaningful uplift for Meta, whose calculated Q1 2026 EBITDA was approximately $28.87 billion. Still, as Meta enters the market, added competition could ضغط down margins in this space.
However, with overall demand for compute still rising, Meta could have a significant growth opportunity ahead. Additionally, the recent deal SpaceX (NASDAQ: SPCX) signed with Alphabet (NASDAQ: GOOGL) suggests that Meta could scale cloud revenue significantly faster than CoreWeave. Alphabet will pay SpaceX $920 million per month to lease computing assets, implying $2.76 billion in quarterly revenue.
Another important implication is what the move signals about Meta’s CapEx spending going forward. If Meta already believes it has excess compute, that suggests the company may not need to spend as heavily on CapEx in the future. Meta’s elevated and rising CapEx spending has arguably been the biggest overhang on its stock price. In turn, a signal that this trend could reverse is a positive for many investors.
The Negatives: Selling Compute Indicates AI Product Weakness
On the negative side, Meta’s willingness to sell compute suggests it does not have enough strong internal use cases for that capacity, raising questions about its broader competitiveness in delivering AI products.
The timing of this pivot is notable given the release of Meta’s Muse Spark model several months ago, which is far more intelligent than its predecessors. The move to sell excess compute suggests that development of Muse Spark-related products may not be progressing as quickly as hoped. That matters because such products would likely require more compute to support usage. In fact, recent reports say CEO Mark Zuckerberg told employees that the pace of the company’s AI agent development has been slower than expected.
Furthermore, it is important to note that details of Meta’s cloud push are still very limited. At present, it is unclear how much of Meta’s compute the company considers to be in excess of its internal needs. Meta’s view on that point is important, since the amount of excess compute capacity would directly translate into the revenue it could generate from its cloud push.
Notably, statements made on Meta’s most recent earnings call push back against the idea that the company has significant excess compute. Chief Financial Officer Susan Li said, “Our experience so far has been that we have continued to underestimate our compute needs.” She added, “Our expectation is that compute will become even more central to the business going forward.”
Meta’s Next Earnings Call Could Provide Significant Clarity on Cloud Ambitions
Overall, Meta has yet to offer any concrete comments on its cloud push. Given the significant implications for the company’s outlook, it will likely be a key topic of discussion during its next earnings call.
When Meta addresses cloud computing directly, investors should monitor the extent to which the company plans to provide compute to third parties. That should provide more detail on the size of the revenue opportunity and the company’s confidence in marketing its own AI solutions.
Broadcom and OpenAI Unveil Jalapeño: An Early Step to Massive AI Growth Potential
Written by Leo Miller. Article Published: 7/4/2026.
Key Points
- Broadcom and OpenAI unveiled Jalapeño, OpenAI's first Intelligence Processor, advancing their 10-gigawatt partnership toward a potential $200 billion revenue opportunity.
- Significant revenue from the OpenAI deal is not expected until 2027, reflecting the lengthy design and deployment cycle inherent to Broadcom's custom ASIC business model.
- Broadcom shares currently trade at roughly 62x earnings, well below their three-year average P/E of approximately 80x, as the OpenAI opportunity moves closer to generating revenue.
- Special Report: Everyone wanted SpaceX. Smart money wants this.
Shares of semiconductor giant Broadcom (NASDAQ: AVGO) were pummeled after the company’s latest earnings report, falling nearly 20% in two days. One of the biggest reasons for the sharp post-earnings decline was the company’s decision not to raise its AI semiconductor revenue guidance.
For fiscal 2027, Broadcom continues to forecast more than $100 billion in sales for this segment. Still, many investors believe Broadcom’s AI semiconductor revenue could end up well above that level. CEO Hock Tan alluded to that possibility himself, saying on the company’s last earnings call, “2027 will exceed very easily $100 billion.”
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Claim your free guide from Thor Metals Group todayOne customer likely to play a significant role in Broadcom reaching, and potentially surpassing, that milestone is ChatGPT maker OpenAI. In 2025, the two companies announced a massive 10-gigawatt (GW) partnership, under which Broadcom will develop chips for OpenAI. Notably, the two firms recently took a key step forward in that partnership by unveiling Jalapeño, OpenAI’s first Intelligence Processor. For Broadcom, Jalapeño is more than a new chip; it could unlock a major revenue opportunity in the years ahead.
Jalapeño: Unlocking the Door to $200 Billion in Revenue?
Approximately nine months ago, Broadcom and OpenAI announced their 10 GW partnership. At the time, Broadcom said it would not begin deploying AI chips and systems for the program until the second half of 2026. With the companies now unveiling Jalapeño, the partnership appears to be moving right on schedule. In turn, Broadcom’s plan to turn its 10 GW partnership into a significant revenue stream remains on track.
GWs are a standard unit of measurement used to evaluate the size of data center deployments, and each one can translate into billions of dollars in revenue. In a Broadcom earnings call, Bernstein analyst Stacy Rasgon estimated that Broadcom’s revenue opportunity was in the range of $20 billion per GW. While the revenue opportunity per GW can vary widely, Hock Tan said the reality was “not far from” Rasgon’s estimate.
So, while these estimates are not precise, Jalapeño may mark an early step in Broadcom’s path toward a $200 billion opportunity. Although the 10 GWs are not expected to be fully deployed until the end of 2029, that would still represent a massive revenue driver. By comparison, Broadcom’s total revenue over the last 12 months was “only” about $75.5 billion.
OpenAI: A Testament to Broadcom’s Long-Term Partnerships
The potential size of this opportunity underscores the value of Broadcom’s long-term partnerships. The two companies announced their partnership nine months ago, yet investors are only now receiving a meaningful update. In addition, significant revenue from the deal will not begin until 2027, since revenue will remain modest through the rest of 2026. That leaves well over a year between the announcement and substantial sales. While that may seem like a long wait, it is exactly what investors should expect from Broadcom.
This is due to the nature of Broadcom’s AI chips. Broadcom designs application-specific integrated circuits (ASICs), which are fundamentally different from NVIDIA’s (NASDAQ: NVDA) graphics processing units (GPUs). GPUs are highly flexible and can perform many different tasks well, which allows them to serve a wide range of customers right out of the box.
By contrast, as their name implies, ASICs are application-specific. They are designed to perform a specific set of tasks extremely well, and those tasks depend on each customer’s needs. As a result, Broadcom must work closely with customers to design a customized chip from the outset.
In the case of Jalapeño, the companies designed it specifically for large language model (LLM) inference. Inference refers to the process of an LLM generating answers, as opposed to training, where LLMs learn.
Importantly, the vast majority of revenue does not come until after the design phase, when the chips are actually deployed in data centers. With that in mind, investors should not expect an immediate sales impact when Broadcom announces a new custom chip partnership. Rather, they should understand that sales take time to ramp, and the OpenAI partnership is another reason to have confidence in Broadcom’s long-term growth prospects.
Broadcom’s Valuation Sinks as OpenAI Opportunity Nears Closer
Broadcom shares now trade at a price-to-earnings (P/E) ratio of around 62x. That is well below its average P/E of nearly 80x over the past three years.
Meanwhile, with Jalapeño, Broadcom’s enormous opportunity with OpenAI is one step closer to becoming a reality. With its valuation lower and a major growth driver not far on the horizon, Broadcom shares appear well positioned going forward.
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