June 10 | Big Dip ≠ Peak! Understand AVGO's Current Landscape and Opportunities
AVGO plummeted 21%, but my outlook hasn't changed
Is AVGO done for?
Has AI hit its peak?
Is Broadcom's growth slowing down?
After seriously reviewing the earnings report, my answer is:
$BTC None of the above.
This market drop,
is essentially killing expectations.
$ETH It's not about killing performance.
The earnings report is actually solid:
✅ AI revenue continues to skyrocket
✅ Profit margins remain at historic highs
$BNB ✅ Orders are still projected through 2028
✅ The $100 billion AI revenue target for 2027 hasn't changed
The issue is that:
The market wants better.
The company delivered a 'good' result.
But not a 'mind-blowingly good' one.
So, they started to slash valuations.
Many folks like to pit AVGO against Nvidia.
But I’ve always thought that’s a misunderstanding.
In the future AI world:
GPUs are crucial.
Storage is critical.
Network interconnects are equally important.
As AI clusters grow larger,
data transmission becomes increasingly vital.
And Broadcom is perfectly positioned here.
Over the past week,
prices have changed dramatically.
But the logic hasn’t.
If AI capital expenditures were to end,
I would be concerned.
But the problem is:
Microsoft is still expanding.
Google is still expanding.
Meta is still expanding.
xAI is also still expanding.
So, I’m not seeing any signals that the AI mainline is ending just yet.
I’ve always believed in one thing:
Real big opportunities often arise when good companies have bad prices.
When it was at $500,
everyone was discussing target prices.
Now that it’s dropped,
people are starting to question if the company has issues.
That’s pretty interesting in itself.
#AVGO #BTC☀ #AI #美股