Wood’s Bargains: A Devilish Dip into Tech

The esteemed Cathie Wood, a sorceress of sorts in these volatile markets, finds herself in a curious predicament. After a 2020 that bordered on the miraculous – a year when even the most cynical brokers briefly considered faith – and a subsequent period of… readjustment, the pursuit of consistent outperformance proves a task fit for a saint, or perhaps a very patient demon. 2025, it seems, is not yielding its secrets easily. But, as any seasoned gambler – or fund manager – knows, a downturn is merely an opportunity cleverly disguised. And Wood, bless her ambitious heart, appears to be taking advantage. Monday’s minor rout, a mere tremor in the grand scheme, found her accumulating shares, a collector of fallen angels, if you will.

She’s been adding to positions in Broadcom, Advanced Micro Devices, and Figma – names that, to the uninitiated, sound like incantations from a silicon valley grimoire. Let us delve into these choices, examining not merely the numbers, but the peculiar spirit that animates these companies, and the faint whiff of desperation clinging to their recent performance.

1. Broadcom

Broadcom, a seven-fold return over five years, now experiencing a modest… cooling. Twenty percent off its peak, a price that would once have induced palpitations in the trading floors, now merely a polite correction. They deal in the infrastructure of the digital world, the very plumbing of the internet, claiming a presence in ninety-nine percent of global traffic. A bold assertion, of course. One suspects they’ve rounded up considerably, but who are we to argue with a company that essentially controls the flow of information?

Fiscal 2025 was, shall we say, mortal. Revenue deceleration from a heady forty-four percent to a mere twenty-four. A tragedy for some, a chance for reassessment for others. Analysts, those oracles of Wall Street, foresee a renaissance in 2026, projecting revenue and earnings growth exceeding fifty percent. Optimistic, perhaps. But then, hope is the lifeblood of the market, even if it’s often misplaced.

Affordability, naturally, is relative. Currently trading at almost fifty times trailing earnings, a valuation that would make even the most ardent enthusiast blanch. But look closer. That multiple shrinks to a more palatable thirty-two times forward earnings. And venture further, to fiscal 2027? A mere twenty-three times next year’s target. A bargain, one might say, if one is willing to ignore the inherent absurdity of valuing a company based on projections that are, at best, educated guesses.

Broadcom has consistently exceeded expectations, even during this period of slowed growth. A curious phenomenon. One wonders what will happen when the accelerator is truly pressed. Their forward earnings target has crept upwards, from $9.29 to $10.32 per share in recent months. Next year’s forecast has jumped from $12.50 to $14.52. One of the market’s favorite picks and shovels for the AI gold rush is becoming cheaper, not merely due to the recent cooling, but because the market, in its infinite wisdom, often fails to recognize a good thing when it’s staring it in the face.

2. Advanced Micro Devices

AMD, trading twenty-five percent below its October high. Another beneficiary of the AI revolution, offering both central processing units and graphics processing units – the very brains and eyes of the digital age. Revenue rose by over thirty-seven percent in both its data center and client/gaming segments in the latest quarter. Impressive, certainly. But guidance was… disappointing. A slowing of revenue in the current quarter. The value, therefore, lies in looking beyond the immediate, to the long-term potential. Thirty times forward earnings may not seem cheap, but the multiple drops below twenty if one dares to gaze into the crystal ball and project out to next year.

As long as the future doesn’t begin to revise itself downwards – a significant ‘if,’ but unlikely at this stage of increasing demand – AMD and Broadcom remain cheaper than short-term investors assume. The market, alas, is often driven by fear and greed, not by logic or reason. It’s a chaotic, unpredictable beast, prone to sudden fits of panic and irrational exuberance.

3. Figma

If AMD and Broadcom investors are lamenting their twenty to twenty-five percent declines, Figma enters the conversation with a particularly poignant tale. Eighty-three percent below last year’s post-IPO high. One of last summer’s brightest stars, now a flickering ember. A broken IPO, some might say. A cautionary tale of overhype and unrealistic expectations.

Business was slowing in its early quarters, but the latest results show a forty percent year-over-year revenue increase. A step in the right direction. A glimmer of hope in the darkness. This is a welcome change from the thirty-eight percent growth three months prior, and the initial forecast of thirty-five percent. A small victory, perhaps, but a victory nonetheless.

There’s no denying that AI coding innovations pose a threat to Figma’s business. But that threat may take longer to materialize than some fear. Figma is also leaning on AI models to enhance its platform, making it more… sticky. Its net dollar retention rate of 136 percent – implying that returning customers are spending thirty-six percent more than they were a year ago – is a strong sign of improving engagement. One should always know the bearish argument for any stock one owns, but Figma’s brief life as a public company seems to have swung wildly from excessive optimism to undue pessimism. Reality, as always, likely resides somewhere in the middle. A frustrating, inconvenient truth for those who prefer simple narratives.

2026-02-24 20:04

1. Broadcom

2. Advanced Micro Devices

3. Figma

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