Dear Reader,

When Amazon invests $144 million in a small startup, and agrees to buy $650 million of its products, you know something big is on the horizon.

The target?

A recently public company with a revolutionary AI technology that’s used by 80% of AI servers.

This is not just another tech company – it’s the backbone of the next generation of AI chips, crucial for giants like Nvidia, Microsoft, and Google.

Click here to see why this company could see a 4,735% revenue surge in the next 12 months.

Good investing,

Alexander Green
Chief Investment Strategist, The Oxford Club

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Special Report

Broadcom’s Blowout Quarter Just Made the Bears Look Foolish

Reported by Leo Miller. Article Posted: 3/5/2026. 

Key Points

• After shares tanked following its December earnings report, Broadcom rebounded strongly in early March.
• The company’s AI semiconductor business more than doubled, and momentum is only increasing.
• Margin stability, clarity around Meta Platforms, and a big buyback authorization were among the positive developments in AVGO’s report.
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Chip giant Broadcom (NASDAQ: AVGO) popped 5% in after-hours trading after releasing its latest earnings report.

The company’s December 2025 report had left investors worried about the trajectory of AVGO’s gross margin.

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Not only did Broadcom deliver a strong quarter this time, but its outlook for that key metric also moved sharply in a positive direction.

After a December disappointment, Broadcom’s Q1 2026 results gave investors confidence across several key measures.

AVGO’s Q1 2026: Beats, Margin Stability, and Exploding AI Sales

Broadcom reported revenue of $19.3 billion, up 29.5% year over year. This slightly exceeded estimates of $19.1 billion, which implied roughly 28% growth. Adjusted earnings per share (EPS) rose 28.1% year over year to $2.05, beating estimates of $2.03 (26.9% growth).

Digging into margins, Broadcom’s gross margin came in at 77%, in line with the firm’s guidance that gross margin would be about 100 basis points below the 78% reported in fiscal Q4 2025. Given that concerns about margin deterioration were one of the biggest takeaways from Broadcom’s last report, this outcome was encouraging.

Further down the income statement, adjusted EBITDA margin was 68%, above the company’s guidance of 67%.

Broadcom’s artificial intelligence (AI) semiconductor business continued to scale rapidly, with sales jumping 106% to $8.4 billion — above Broadcom’s own estimate. Because AI semiconductor revenue has historically carried lower gross margins than the rest of the business, stronger-than-expected AI sales would normally pressure overall margins. The fact that margins held steady suggests Broadcom has taken steps to protect profitability in its AI division.

One weakness in the quarter was the infrastructure software segment, anchored by VMware. Sales there grew just 1% year over year, after rising 17%–25% over the prior three quarters.

Looking ahead to the next quarter, Broadcom expects revenue of $22 billion, implying 47% year-over-year growth. That comfortably beat estimates of $20.35 billion, which implied about 36% growth. Broadcom also projects adjusted EBITDA margin to hold at 68% and sees AI semiconductor revenue accelerating to $10.7 billion, up 140% year over year.

AVGO Pushes Back on META Worries, Reverses Course on Gross Margin

Broadcom also pushed back on reports that one of its key customers, Meta Platforms (NASDAQ: META), was pulling back from custom AI accelerator plans. CEO Hock Tan said, “Contrary to recent analyst reports, Meta’s custom accelerator MTIA roadmap is alive and well. We’re shipping now.” MTIA stands for Meta Training and Inference Accelerator, the custom chip series co-developed with Broadcom — a reassuring sign for investors about that hyperscaler relationship.

Broadcom also said it has added another customer for AI XPUs (its name for custom AI accelerators), bringing the total to six — up from three just one year ago. That underscores Broadcom’s ability to convert potential XPU customers into contracts.

The company clarified its gross margin outlook as well. After an analyst asked whether gross margin could fall 500 basis points, Tan dismissed the idea as “hallucinating.” Chief Financial Officer Kristen Spears added, “On further study, relative to even comments that I made last quarter, the impact relative to our overall mix is actually not going to be substantial at all. So I wouldn’t worry about it.”

The exchange is notable because in Q4 2025 Tan and Spears had warned that margins would deteriorate as AI became a larger part of the mix. They now appear to be backing away from that view, and the reason for the reversal is not yet clear.

AVGO: The AI Enabler Showing No Signs of Slowing Down

Companies can always aim to deliver bigger beats, stronger guidance, or more optimistic commentary, but Broadcom’s latest report was genuinely impressive.

The results and forward guidance were strong, Broadcom added another custom silicon buyer, and the company has effectively reversed its prior warnings about gross margin impact from AI growth. While the abrupt nature of that change is puzzling, what ultimately matters is whether upcoming results validate the new stance — and Broadcom is unlikely to flip its guidance without confidence, since doing so would risk future disappointment.

On top of the operational positives, Broadcom announced a $10 billion share buyback program. Given the stock’s softness despite robust business performance, management may view the current price as an attractive opportunity. Considering the many positives in this quarter’s report, that view appears reasonable.

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Special Report

Ondas Jumps on German Police and NATO Wins—Can the Rally Hold Into Earnings?

Reported by Jeffrey Neal Johnson. Article Posted: 2/19/2026. 

Key Points

• The company recently secured multiple major contracts with European government entities to deploy its advanced counter-drone technology for public safety.
• Management has strengthened the balance sheet to support aggressive expansion plans and future strategic acquisitions in the autonomous systems sector.
• Strategic acquisitions have expanded the corporate portfolio to include both soft-kill and hard-kill drone defense solutions for government customers.
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During the first half of February, the stock market saw a significant move in the defense technology sector. Shares of Ondas Inc. (NASDAQ: ONDS)rose more than 15%, breaking through the psychological resistance level of $11 per share. Trading volume was heavy, topping 100 million shares multiple times, indicating strong interest from both retail investors and large institutions.

The most immediate catalyst for this rally was a headline-grabbing announcement: the company’s subsidiary, Sentrycs, secured a contract with the German State Police. That deal involves deploying advanced counter-drone technology to protect the airspace over German cities and critical infrastructure.

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For investors, this contract serves as a validation. When a major European government entity adopts a new technology for public safety, it signals the product is reliable, field-tested, and ready for wider adoption. But looking at this deal in isolation would be a mistake. The agreement with German law enforcement is the capstone of a breakout month for Ondas, marking its transition from a developmental tech firm to a global defense contractor.

From Israel to NATO: A Month of Wins

February 2026 has been transformational for Ondas. In less than three weeks, the company announced major wins across three geographies: the United Kingdom, Israel, and the broader NATO alliance. This sequence of events paints a picture of a company firing on all cylinders.

The German Police Deal (Feb. 17)

The most recent win involves the delivery of Sentrycs Scout units. These portable, man-packable systems are designed for mobile police units. In a world where drones are increasingly used for criminal surveillance or terror threats, police forces need a way to neutralize them instantly. This contract confirms that Ondas has the solution European agencies are seeking.

The NATO Interceptor Order (Feb. 13)

Just days earlier, the company’s Airobotics subsidiary received a multi-million-dollar order from a NATO member nation. The order was for the Iron Drone Raider, a system designed to physically intercept and disable hostile drones. While the specific country remains undisclosed for security reasons, a NATO contract often opens the door to sales with other allied nations.

The $30 Million Demining Contract (Feb. 9)

Earlier in the month, the company’s 4M Defense subsidiary won a $30 million multi-year contract for demining operations in Israel. Covering approximately 741 acres along the Syrian border, this project uses autonomous robots to clear dangerous terrain. It shows that Ondas’ autonomous technology isn’t just for the sky; it is equally effective on the ground.

The Rotron Acquisition (Feb. 2)

Kicking off the month, Ondas acquired Rotron Aero, a UK-based specialist in heavy-lift and long-range unmanned aerial systems (UAS). This strategic move filled a gap in the company’s portfolio, adding long-range strike capabilities that are highly sought after by military clients.

Cash Is King: Ondas Can Afford to Grow Fast

In the world of small-cap technology stocks, cash is one of the most critical metrics. Many promising companies fail not because their technology is bad, but because they run out of money before they can scale. This is where Ondas separates itself from the pack.

Following strategic equity raises in late 2025, the company reported a pro-forma cash position of approximately $840 million.

For a company with a market capitalization of roughly $4.6 billion, holding nearly $840 million in cash is a massive advantage. This war chest serves two vital purposes for investors:

1. Risk Mitigation: It creates a safety net. Even if the global economy slows, Ondas has enough cash to fund its operations for years without raising additional capital or diluting shareholders further.
2. Agility: It allows the company to be aggressive. If they see a competitor they want to buy or a new technology they need to develop, they have the liquid capital to act immediately.

Revenue growth further supports the bullish thesis. In its third-quarter report for 2025, Ondas posted revenue of $10.1 million, representing a 582% increase year-over-year. Management has also raised its full-year 2026 revenue target to $110 million. When you combine triple-digit growth with a fortress-like balance sheet, the investment risk profile improves significantly.

Soft Kill vs. Hard Kill: A Complete Defense

Why is Ondas winning these contracts over competitors? The answer lies in its System of Systems strategy. Most defense companies specialize in one area: either detecting drones or shooting them down. Ondas has built a portfolio that does both.

The recent contract wins highlight this diversity perfectly:

• Soft Kill (German Police): The Sentrycs system uses Cyber-over-RF technology. Rather than shooting a drone down, it disrupts the communication link between the drone and its operator, then takes control of the drone and lands it safely. This soft kill is ideal for a police officer in a crowded city square, where bringing a drone down by force could hurt civilians or damage property.
• Hard Kill (NATO): The Iron Drone system uses a physical interceptor to ram or net a hostile drone. This hard kill is necessary to protect high-value sites—such as nuclear power plants, airports, or military bases—where the threat must be eliminated with certainty.

By offering both approaches, Ondas provides a one-stop shop for defense clients. A government customer can buy solutions for city police (Sentrycs), border guards (Iron Drone), and long-range surveillance or strike capability (Rotron). This integration creates a competitive moat, making it harder for rivals to displace the company.

Execution Drives Value

The market has clearly taken notice of the Ondas story, with the stock up more than 570% over the past year. However, despite the massive run-up, Wall Street analysts believe the stock has not yet reached its peak.

The consensus rating for Ondas remains a Moderate Buy, with an average price target of $17.29. From the current price level of around $11.08, that implies potential upside of approximately 56%.

February 2026 will likely be remembered as the month Ondas came of age. The company proved its aggressive acquisition strategy works, integrating firms like Rotron and Sentrycs and quickly turning them into contract wins. With a backlog exceeding $40 million, a cash position of roughly $840 million, and validation from the German government and NATO, Ondas enters the rest of the year with undeniable momentum.

For investors, the key metric to watch next will be the earnings report on March 11. The market will want to see these headline-grabbing contracts convert into recognized revenue. For now, however, the bulls appear firmly in control.

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Further Reading: These Small Caps Just Hit Critical Inflection Levels (Click to Opt-In)