CK Capital
Defense/Space/Tech/Photonics Investor, Co-Owner of CV Research
Broadcom is too cheap to ignore at 20x forward earnings, down from 32x a year ago, while its AI revenue is set to double two years running. Q3 AI semiconductor revenue rose 221% to $16.7 billion and net income tripled to $13.1 billion. Hock Tan guided to $115 billion of AI revenue in fiscal 2027 and $230 billion in 2028, with EPS above $30 versus $25.86 consensus. Broadcom builds TPUs for Alphabet, MTIA for Meta and Jalapeño for OpenAI. x.com
Dow Jones
Real-Time Financial News Wire
More relevant is that Anthropic has grown revenue incredibly quickly — to $16.3 billion in the first half of 2026 — and generated an adjusted operating profit of $1.6 billion (as compared with a $3 billion adjusted operating loss in the second half of 2025). tradingview.com
AlvaSupportsAnthropic's swing to $1.6 billion in adjusted operating profit strengthens its ability to support the compute commitments behind Broadcom's AI demand outlook.
Walter Bloomberg
Financial News Headlines Aggregator, Not Affiliated with Bloomberg
Blackstone has warned investors that Anthropic may receive a below-investment-grade credit rating following its IPO, reversing earlier expectations, according to the Financial Times. The AI company is reportedly expected to receive a BB-range rating, potentially raising borrowing costs and limiting access to institutional capital. x.com
AlvaChallengesA reported potential junk rating would increase financing risk at a major Broadcom customer whose $63 billion chip package relies on Broadcom guarantees.
Sravan Kundojjala
Semiconductor Industry Analyst at SemiAnalysis
The industry is expected to stay supply-constrained through 2027 and into 2028 - 1H27 is tighter than 2H27; server market share next year depends mainly on supply x.com
AlvaChallengesKundojjala reports an industry supply shortfall extending into 2028, raising execution risk for the production ramp required to meet Broadcom's two-year AI revenue targets.Sravan Kundojjala
Semiconductor Industry Analyst at SemiAnalysis
MediaTek 4Q26 ... 2027 ASIC is now at the high end of the $16B target (20% of the AI ASIC TAM) x.com
AlvaMixedMediaTek's reported $16 billion 2027 ASIC target supports rapid custom-chip demand growth while pointing to a rival capturing a substantial share of the market Broadcom targets.Dow Jones
Real-Time Financial News Wire
investors worry about competition from open-source models and Chinese labs to OpenAI and Anthropic, Zverev says. "I'm not sure frontier labs have that sustained advantage, and therefore I'm not sure that the capex bubble feeding that monster is sustainable." tradingview.com
AlvaChallengesCompetition from open-source and Chinese models could erode OpenAI's and Anthropic's advantages, threatening the sustained compute spending behind Broadcom's custom-chip growth.
The Transcript
Weekly Earnings-Call Quotes Newsletter
$GOOGL CFO: "Google Cloud's backlog was $561 billion in Q3, with the majority of the backlog related to typical GCP contracts. We expect to recognize just over 55% of the total backlog as revenues over the next 24 months... x.com
AlvaSupportsExpected conversion of more than half of a $561 billion cloud backlog within two years strengthens revenue visibility supporting Alphabet's infrastructure investment and Broadcom's TPU opportunity.
Erin Griffith
Technology startups and venture capital reporter at the New York Times
And I think in Q3, they grew 44%. And that's a pretty significant slowdown from gangbusters growth down to just great growth. But is that going to continue on that trajectory? In that case, the growth story isn't as exciting, and perhaps demand isn't going to be through the roof forever. dts.podtrac.com
AlvaChallengesGriffith reports Anthropic's Q3 growth slowed to 44%, raising demand risk for the large compute commitments underpinning Broadcom-linked chip purchases.Dow Jones
Real-Time Financial News Wire
The company was hit by a shortage of organic substrates-the basic material that electronic components are built on. Capacity expansions won't pay off till the second half of next year, Intel said. ... That shortage points to supply-chain woes that are also hitting Intel's competitors. tradingview.com
AlvaChallengesOrganic-substrate shortages extending until capacity expands in the second half of 2027 raise a supply risk to the chip-shipment ramp behind Broadcom's AI revenue target.Connor Teskey
podcast
Right now, demand is exceptionally high and supply is only a small fraction of that demand. ... Even if demand growth was to slow, even if it was to plateau, even if it was to decline, there would still be a huge supply demand imbalance to the providers of those assets and those inputs into that ecosystem. mgln.ai
AlvaSupportsTeskey sees an infrastructure supply shortfall large enough to persist even if demand weakens, supporting continued investment in the capacity needed to deploy Broadcom-linked AI chips.
Fireside Alpha
Business, Technology and Investing Interview Digest
Caterpillar CEO says ... “We’re now taking some large reciprocating orders as far out as 2029 and turbine orders into 2030... ... driven by increasing energy demand to support the data center buildout related to cloud computing and generative AI.” x.com
AlvaSupportsData-center-driven engine and turbine orders extending into 2029-30 show customers committing to power infrastructure beyond Broadcom's 2027-28 AI growth targets.Fireside Alpha
Business, Technology and Investing Interview Digest
Finally, our chips business continues to grow triple-digit percentages year over year, and revenue commitments for Graviton and Trainium have each increased more than 20 times year over year. ... “With Trainium demand so strong, customers continue encouraging us to make it available outside of AWS. We intend to do so late in 2027.” x.com
AlvaMixedAmazon reports triple-digit chip-business growth and more than 20-fold increases in Graviton and Trainium commitments, confirming strong custom-chip demand; its planned external Trainium sales add competition to Broadcom's custom-accelerator programs.
First Squawk
Financial Audio News Service
AMAZON CEO SAYS THAT WITH TRAINIUM CHIP DEMAND SO STRONG, CUSTOMERS ARE ENCOURAGING AMAZON TO MAKE IT AVAILABLE OUTSIDE OF AWS, AND IT INTENDS TO DO SO LATE IN 2027 - CONF CALL x.com
AlvaChallengesAmazon's plan to offer its in-house Trainium chips outside AWS in late 2027 adds a major hyperscaler-designed alternative that could compete for custom AI accelerator demand alongside Broadcom's programs.Ross Pamphilon
podcast
What we're hoping for is a bit of a middle ground, because whilst we see in Anthropix perspectives, their AI rising exponentially, CapEx is also going through the roof, and we've got to get our heads around just how operating cash flow is going to increase so Ideally, we'd see CapEx flat or Model C up, demand being robust for compute, but more equity financing. podtrac.com
AlvaMixedPamphilon sees robust compute demand alongside sharply rising capex, but wants more equity financing and clearer operating-cash-flow growth before treating the expansion as financially sustainable.
TBPN
Technology's Daily Show
[SemiAnalysis: "We think there's a one gigawatt TPU commitment, and OpenAI is looking for sites."] podcasts.apple.com
AlvaSupportsSemiAnalysis estimates a 1-gigawatt TPU commitment while OpenAI seeks deployment sites, adding a potential large-scale demand signal for Broadcom-linked Google chips; the commitment remains unconfirmed.
Damnang
Semiconductor Engineer in Silicon Valley, AI Chip Investment Research
AI labs will increasingly shift from GPUs to ASICs (XPUs), with the ASIC to GPU ratio rising from roughly 1:1 in 2026 to nearly 2:1 in 2028. x.com
AlvaSupportsA forecast shift from roughly equal ASIC and GPU deployments to nearly twice as many ASICs by 2028 supports market-share gains for Broadcom's custom-chip business.Dow Jones
Real-Time Financial News Wire
Alphabet has $924 billion in future purchase commitments as of the end of the third quarter. ... Through the first three quarters of 2026, it has issued $85.2 billion in debt. The company has also raised $42.9 billion from share sales and $19 billion in mandatory convertible preferred stock. tradingview.com
AlvaMixedSubstantial debt and equity issuance funds Alphabet's infrastructure expansion, but $924 billion of purchase commitments increases the financing burden behind continued spending on Broadcom-linked TPUs.
Libby Cantrill
Managing Director and Head of Public Policy at PIMCO
And I think people are underestimating how much friction there could be in this AI infrastructure build out come 2027. ... And a lot of these governors are actually running on an anti-AI, anti-data center platform. podtrac.com
AlvaChallengesForecast state-level opposition to data centers raises permitting and deployment risk during the fiscal year in which Broadcom targets $115 billion of AI revenue.Fireside Alpha
Business, Technology and Investing Interview Digest
Oracle co-CEO explains why he doesn’t see GPUs outrunning demand anytime in the next three to five years: ... but what if somehow we’re able to build just so many more GPUs than there is demand for? I just don’t see that. Not for the timeline that I feel like I can, you know, confidently have some perspective on over the next three to five years. I don’t see it happening. x.com
AlvaSupportsAn infrastructure buyer's expectation that compute demand will absorb supply for three to five years supports the sustained buildout behind Broadcom's 2027-28 revenue targets.
Jukan
Semiconductor & AI Infrastructure Research at Citrini
Taiwan’s Powertech is reportedly partnering with Broadcom to build a $400 million panel-level packaging (PLP) fab in Singapore. x.com
AlvaSupportsThe reported $400 million packaging-fab partnership would expand manufacturing capacity available to Broadcom, supporting its ability to scale chip shipments; the project remains unconfirmed.
Bloomberg
Business and Financial Information and News Platform
Banks are delaying plans to offload part of a $15 billion loan to fund a data center tied to Anthropic in Texas, after the state put a hold on new projects while assessing risks to its power grid x.com
AlvaChallengesA reported Texas project freeze has delayed distribution of a $15 billion Anthropic-linked data-center loan, adding a concrete power-grid and financing obstacle to deploying a major Broadcom customer's compute capacity.