Broadcom has taken the second pill, pointing to further downside for the stock. x.com 

Nvidia and Broadcom could both go bankrupt if the AI bubble does not last forever, because together they now back about $180 billion of customers' debt obligations. Cisco faced the same setup after the internet buildout, when oversupply collapsed prices, its revenue fell back to pre-bubble levels and $2.2 billion of vendor debt it had backed defaulted. For scale, Nvidia's net income in 2021, before the bubble began, was $4.4 billion. 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 is tied into the questionable circular AI financing model, a red flag many shareholders miss. It is liable for $30 billion of Anthropic's latest loan if Anthropic can no longer service its debt. Organized by Apollo and Blackstone, the private credit deal lets Anthropic fund and lease custom AI chips from Broadcom and Google without taking the debt onto its own books. Broadcom's rapidly growing cash flows are real. 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 

Broadcom's custom silicon business stands to turn Anthropic's IPO funding into chip orders. The cash raised for Anthropic's compute spending would flow down the stack into Broadcom's order book. x.com 

Broadcom's Jalapeño chip deal with OpenAI is already priced in and margin dilutive. OpenAI guides to about 30 GW by 2030; at 30-40% Jalapeño, that is 9-12 GW, matching the 10 GW deal signed in October 2025. Selling finished chips, Broadcom books full ASPs but fronts wafers, HBM and other costs, about $15 billion per GW or $25-45 billion a year, at 50-60% margins at best. FY27 guidance already tops $100 billion; the bull case is maybe $120 billion. Broadcom even lends OpenAI the build money. … Show more

Semiconductors are betting on AI labs whose spending commitments the stock market takes seriously, despite little visibility into what is happening at the labs. They selectively leaked good news for three years, but last week brought the opposite; Anthropic has also delayed an IPO originally slated for before Labor Day. Broadcom CEO Hock Tan warns that enterprise AI spending may yield little learning. x.com  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 demand case looks less credible because the person projecting a fourfold EPS increase by 2030 now says that demand comes from gamblers consuming tokens. The person raising roughly $100B to finance chips also warns that a lack of capital could stop the bubble. Broadcom is no longer appealing. x.com  x.com