Growth & Total Return Weekly Chat

This is the forum for Growth & Total Return discussion on Seeking Alpha. A new chat begins every two weeks, and all previous blogs are listed in chronological succession on the main chat page. We won’t be doing any comment cleanup in the new chat, and users will always be able to refer back to previous discussions.

More on Today’s Markets:

Metaverse gaming giant in Roblox (NYSE:RBLX) has been on an excellent run at the stock market over the past several months. Posting a 6-month return of more than 60%, Roblox stock emerged as a big winner last year. In all fairness, the rally was mostly well-deserved with the company continuing to post robust numbers across virtually every metric. However, the stock’s now trading at a nosebleed of a valuation, with Wall-Street forecasting a 7.9% downside from current levels. Additionally, based on my DCF analysis, with a 13% WACC, Roblox has a tall order in maintaining over 30% free cash flow growth to justify its current value. Though it has the potential to continue growing at a staggering pace, I feel the stock’s now fairly valued, all things considered.

This means that the second-largest player in the AI data center market after Nvidia is trading at a lower level than when ChatGPT was launched and triggered the AI gold rush. This is despite the fact that AMD’s results are back on the upside with data center revenue up 122% YoY and operating income in the segment up 240% YoY. In addition, we believe AMD is well positioned to take advantage of the opportunity to narrow Nvidia’s 90% lead in the AI data center space with its upcoming MI350 series later this year and compete with Nvidia’s Blackwell.

Nvidia’s data center segment revenue has been excellent ever since ChatGPT reached 100 million users in January 2023, and it is now far greater than the combined overall revenue for all of Intel (INTC) and AMD (AMD). The Nvidia data center segment of this semiconductor revenue graph stands out because the segment went from $4.3 billion for the 1Q23 calendar period all the way up to $30.8 billion for the 3Q24 calendar period

Lundin Mining (OTCPK:LUNMF) is a base metals mining company with producing assets in the Americas and Europe. The company reports in U.S. Dollars and the stock is listed in Canada (TSX:LUN:CA) and Sweden. I have covered Lundin Mining a few times over the last year and my prior articles can be found here. In this article, I will primarily focus on the recently announced asset divestments and the latest quarterly results.

The earnings outlook of Capital Bancorp, Inc. (NASDAQ:CBNK) is rosy following the acquisition of Integrated Financial Holdings. The loan book will likely grow by double-digits in 2025 due to a positive outlook on the agricultural, solar, and legacy commercial divisions. However, the outlook for the credit card business isn’t bright. Overall, I’m expecting the company’s earnings to grow by 33% to $3.10 per share in 2025. The stock price has surged by around 72% since I last wrote on CBNK back in April 2023. My valuation analysis shows that there is still some upside left; hence, I’m maintaining a buy rating on Capital Bancorp.

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