Matthew Tuttle
CEO & CIO of Tuttle Capital Management, Publisher of Daily H.E.A.T.
Broadcom's selloff on flat AI chip guidance prices in the wrong thesis. The guidance, reported by CNBC, is being read as sector weakness, but the real signal is hyperscaler capex rotating off raw GPUs into networking, interconnects and custom silicon, which is Broadcom's core strength. This is a rotation, not a turn. x.com
Broadcom's custom AI chips for major customers position it as a clear winner in the continuing AI buildout. Kris Patel's case that efficiency and total cost of ownership leave Broadcom room to gain share from incumbent Nvidia is persuasive. Broadcom has not seen peers' upside and is 30% below its highs, making the stock an opportunity. x.com x.com
Broadcom's stronger AI business looks cheap for its growth, making it one of the best buys in the market right now. AI chip revenue rose 221% to $16.7B last quarter, yet the stock trades at 19x forward earnings and a 0.35 PEG. Management sees AI revenue near $115B in fiscal 2027 and would raise that outlook if customers secure more land and power. Anthropic is on track to be its largest custom chip customer next year. Wall Street's $529 average target implies about 60% upside. x.com
Broadcom's AI business is smaller and growing slower than Nvidia's networking unit alone, yet Broadcom is valued at $2.269T against Nvidia's $5.201T. Broadcom's Q2 AI semiconductor revenue rose 143% to $10.8B, with Q3 guided to $16.0B, while Nvidia's data-center networking revenue rose 199% to $14.8B. Hock Tan also said Google is diversifying away from Broadcom, and a Fubon roadmap shows Google using MediaTek for some TPUs. x.com x.com
Broadcom's custom AI chips and networking could drive earnings beyond what its valuation implies over 2-3 years. It is the favorite semiconductor opportunity now, preferred over NVIDIA without replacing it. AI semiconductor revenue is projected at about $58B in FY2026, $115B in FY2027 and potentially $230B in FY2028. At about 17x FY2027 consensus adjusted earnings, risk/reward is compelling if growth materializes; customer commitments add visibility, but delays and financing remain risks. x.com … Show more
Broadcom's reported $63 billion deal to finance AI chips for Anthropic is a long-term bullish catalyst for AI and semiconductor stocks. Kalshi Finance reports the arrangement; the bullish view covers Broadcom, TSMC, Nvidia, Nebius and the SMH and SOXX semiconductor ETFs. x.com
Broadcom borrowing again signals a $1.8 trillion company running low on cash. Per @KobeissiLetter, citing the WSJ, Broadcom is seeking more than $50 billion of financing for OpenAI's custom AI chip, with Apollo and Blackstone among the lenders it has approached. x.com
Anthropic's $63B custom-chip deal bolsters Broadcom's case for growth from custom AI silicon. OpenAI's Jalapeño chip is seen as next, and the AI chip supercycle is just getting started. x.com
Broadcom's significant exposure to Anthropic's AI infrastructure spending and custom AI chips adds to its growth case. Annual EPS is projected to rise nearly fourfold from $8.06 LTM to $30.38 by FY2028, while the stock trades roughly 30% below its all-time high. x.com
Broadcom's top growth driver, Google TPUs, can be captured elsewhere, such as through Vicor, while its OpenAI exposure through the Jalapeño chip is unwanted in light of today's news, even if that proves a nothingburger. Broadcom should still do great and may be worth re-entering later, but the capital can find better ways to outperform it. x.com x.com
AI infrastructure bottlenecks could give eight stocks as much as 18x upside. Nvidia supplies frontier-model GPUs; Broadcom and Marvell supply custom silicon and networking; TSMC makes advanced chips; Micron supplies sold-out HBM; Vertiv provides power and cooling; Palantir monetizes enterprise AI; Alphabet spans TPUs, research, cloud and apps. The list tracks where AI infrastructure spending is flowing. x.com x.com
