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Technology & Semiconductor Equity Commentary
Broadcom's AI business is now growing more than twice as fast as Nvidia's, and its forecasts are conservative. For FY27, Broadcom is forecasting Anthropic chip revenue alone equal to its entire current semiconductor run rate, with Meta and OpenAI doubling that and Google on top. Its plan to double in 2027 and again in 2028 is described as supply-constrained and conservative. x.com x.com x.comÂ
Broadcom's positive free cash flow, liquidity and declining debt support its appeal. It is growing across every metric, adding financial strength to the investment case. x.comÂ
Broadcom is a quality compounder at a pretty attractive valuation. Semiconductor revenue grew 127% and infrastructure software 29%, backed by a high-quality management team and a strong moat. Its $35B of debt is the only downside, and $39B of free cash flow over the last twelve months keeps that very manageable. x.comÂ
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.comÂ
Broadcom's business model, cash flow, order book and dividend growth make it a long-term investment no-brainer, per Th96Trading. Broadcom is the most undervalued stock in the market right now; the attached chart shows quarterly revenue up 227.3% over five years to $22.19B. x.com x.comÂ
Broadcom looks like an obvious buy because its valuation has become attractive while its growth is at a multi-year high. The stock has actually lost money over the past year. x.comÂ
Broadcom looks overpriced at 83x trailing and 48x forward earnings and 29x sales, and could correct sharply if markets hit a 20% mid-term drawdown. Its strength is real: it acts like a high-end hedge fund, acquiring and operating only in leading tech themes and consistently landing on the right side of history. x.comÂ
Broadcom's growth opportunities support a premium despite its stock not being dirt cheap. The selloff was much needed for big winners like it. Broadcom now occupies the position Microsoft did when it was called a 'gift' at $350 and one of the simplest buys of 2026, with around 75-85% upside in 1-2 years. It is a solid risk-reward buy here and lower. x.com x.com x.comÂ
Broadcom looks tempting because it remains a monstrous business, not a broken company; hype got ahead of itself and earnings guidance reset expectations. The open question now is just the valuation multiple. x.com x.comÂ
Broadcom has become an Anthropic name rather than a Google name, which hurts as Anthropic's growth slows. Yipit data shows Anthropic's ARR at $70 billion versus $65 billion a month earlier, with monthly growth down from $8 billion to $5 billion. OpenAI, meanwhile, is accelerating at $43 billion ARR and $5 billion a month, and its talent and AI capex moat should help it surpass Anthropic in enterprise soon. x.comÂ
Broadcom has abundant upside potential from current valuation levels. x.comÂ