Broadcom faces a correction of at least 30% because semiconductors are at the end of their hog cycle. x.com 

Deployment limits will slow AI hardware spending and expose cyclical suppliers such as SK hynix. Amazon has hardware waiting for power, and Broadcom's CEO said some clients delayed shipments because they could not deploy. Cheap forward multiples can mark a cyclical peak as analysts extrapolate growth. The slowdown could have begun or be a year away; timing is uncertain, so reducing cyclical risk in favor of healthier, genuinely cheap names looks better. x.com  x.com  x.com 

Broadcom's diverse networking exposure makes it one of the best positioned in the theme. The market has overlooked it year to date. Optical DSPs, Tomahawk and Jericho underpin the view; Tomahawk 6/7 ramps in 2027, and Tomahawk Ultra and optical DSPs should accelerate growth. New XPU customers and extended hyperscaler deals add to earnings upside and an eventual re-rating. Risks remain, and weak semiconductor flows warrant caution about calling a bottom. 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 valuation is likely to price in margin compression even if its actual margins hold, because squeezing leading suppliers' margins is the core aim of its four big customers. Chips are now production tools for cloud providers, so saving money is making money, and they shift to lower-margin second suppliers wherever they can. Real shortages make that hard near term, but the market prices it in early, as with Nvidia's 12x P/E. Trading can diverge from fundamentals. x.com  x.com  x.com  x.com 

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.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 

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.com 

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.com 

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.com