Locator: 49686AVGO.
Updates
Later, 4:30 p.m. CT: AVGO drops back about an hour after earnings reported. Dropped back to where it was at the close and maybe even dropped lower. Bizarre.
Original Post
Bottom line: results tell me --
- AI is not a bubble:
- chips are not all equal (posted before on the blow) -- first to note this on a blog that has no advertising and no subscription (or passwords)
- folks completely misread the Oracle story yesterday; one of the most bullish stories with regard to AI ever.
Trading / closed at $406.37
At the close: down 1.6%; down $6.60 for the day.
Immediately after hours: up 0.2%; up 81 cents.
Earnings pending.
Earnings are out.
AVGO surges: up $14.14.
AVGO: numbers across the board are higher -- link here -- posted quickly; needs to be fact-checked --
- EPS: $1.95/share vs $1.86/share
- revenues: $18.02 billion vs $17.49 billion, much, much higher! Wow!
- Broadcom’s overall revenue grew 28% during the quarter, which the company attributed to AI semiconductor sales rising 74%
- current quarter revenues appear to be better than estimated
- AI chip sales in current quarter to double says revenue in fiscal first quarter will be about $19.1 billion; a 28% year-over-year growth; higher than the $18.3 billion estimate
It's all about GPUs, CPUs, and TPUs.
Related to : Google and TPUs.
ORCL: GPU, moving into XPU but not Google TPUs.
Upside in Google TPUs. All of those are Broadcom.
We've talked about this before. It was noted in print medium just before Cramer mentioned it a few days ago.
Broadcom: teased us with "three companies contributing to all revenue" last quarter, but now, a "fourth company" has been added. We do not know the fourth company but the company may be revealed today.
In June, Broadcom said it had three customers and four prospects for its custom AI chips.
Could it be OpenAI be the fourth? Might there be a fourth and a fifth?
From September 25, 2025, from the blog:
Ask AI: Broadcom puts its AI revenue opportunity at between $60 billion and $90 billion by 2027 just from three existing hyperscale customers. Who are the three customers?
Reply: not publicly disclosed. Rumors: Alphabet's Google, Meta Platforms, and ByteDance.
ByteDance is the Chinese internet technology company behind social media apps like TikTok and its Chinese counterpart Douyin.
More recently, that four major customer might be Anthropic (Claude). So, the betting is on Anthropic or OpenAI.
Increased their dividend by 10%?
Bottom line: CPUs --> GPUs --> TPUs.
Intel, AMD, and all the rest --> Nvidia --> AVGO.
The pie keeps getting bigger but there are more and more slices being cut. More and more slices, but the individual slices may also be getting bigger.
Intel makes CPUs.
Seldom mentioned: high-bandwidth memory. After hours, MU is up after Broadcom's earnings report. MU = high-bandwidth memory.
