Revised Broadcom Thesis Amidst High Valuations

20 days ago

"I was completely wrong on Broadcom on 2025 and want to share some reflections on my previous bearish case. I believed that ASIC companies would develop many components in-house, but the Broadcom CEO shifted my perspective by explaining that AI companies should rely on a specialized chip maker rather than trying to compete in chip innovation themselves. For me, Broadcom remains a bit pricey compared to Nvidia, so I'm not going to buy right now. However, if there's ever a crazy sell-off on Broadcom, I think I would jump on that opportunity."

The speaker revises his earlier bearish thesis on Broadcom after hearing the CEO's take on leveraging Broadcom's chip expertise in the competitive AI market. While he remains bullish on Broadcom's long-term prospects due to new customer wins and tailwinds in AI, he currently finds its valuation high and would prefer to enter only upon a significant sell-off.

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