One chip stock and two health names to own for the long run, according to investor Hulick

Tom Hulick, CEO of Strategy Asset Managers, is recommending Broadcom, Eli Lilly, and Intuitive Surgical to investors, citing strong growth drivers and market positioning. Broadcom, up 56% year-to-date, is favored for its AI deals, including a partnership with OpenAI for custom AI accelerators, and its role as a key hyperscaler chip supplier. Eli Lilly is highlighted as a long-term winner due to its GLP-1 medications for diabetes and obesity, particularly the promising retatrutide in Phase 3 trials, which could significantly impact healthcare spending. Finally, Intuitive Surgical, whose shares rallied 23% this month, is seen as a leader in robotic-assisted surgery with its da Vinci systems, poised for continued prevalence and efficiency gains in medical procedures.

Analysis

Tom Hulick, CEO of Strategy Asset Managers, expresses a strongly bullish outlook on Broadcom (AVGO), Eli Lilly (LLY), and Intuitive Surgical (ISRG), citing robust growth drivers and strategic market positioning. Broadcom shares have surged 56% year-to-date, while Intuitive Surgical rallied 23% this month following strong earnings, reflecting significant investor confidence in these innovative sectors.

Broadcom's positive momentum is largely attributed to its strategic AI deals, including a mid-October partnership with OpenAI to develop 10 gigawatts of custom AI accelerators. The company's focus on application-specific integrated circuits (ASICs) positions it as a critical chip supplier to hyperscaler tech companies, driving anticipated revenue growth beyond 2026 by enhancing efficiency and reducing power consumption.

Eli Lilly is identified as a long-term winner due to its promising GLP-1 medication pipeline, particularly the Phase 3 drug retatrutide, which aims to reduce fat without muscle loss and could significantly impact healthcare spending. Concurrently, Intuitive Surgical, with its da Vinci robotic systems, is poised for increased prevalence in surgical procedures, offering greater precision and efficiency, as evidenced by its recent earnings-driven rally.

Key Decisions for Investors

• Investors should evaluate the specific growth catalysts underpinning each company's bullish outlook, including Broadcom's strategic AI partnerships and ASIC technology, Eli Lilly's advanced GLP-1 pipeline, and Intuitive Surgical's leading position in robotic-assisted surgery.
• Monitor key developments such as the progress of Eli Lilly's retatrutide in Phase 3 trials and Broadcom's hyperscaler engagements for sustained revenue growth.
• Consider these companies for long-term portfolio allocation given their innovative market positions and potential for sector evolution.