Guavaxf3006
09-10

Like NVDA and MRVL, and also CRWV, AVGO is now in a state where the valuation ramp-up is getting more and more scrutinised. The very real fear is the amount of cash investments to bring the AI theme into real profitability is really way over. Why Jensen Huang and his party of funders are talking up with a promised capitalisation of 0.5 trillion, is they know this. Everything hinges on the operating AI models out there actually turning real profit. So far, no AI business has done this. And the real fear is it seems that the only way to get this profitable is to throw even more money into it. It's like that old joke about some businesses which never see daylights. How do you become a millionaire dealing in these? You first need to be a billionair.

Broadcom's AI Revenue Grew 221% — and It's Still the "Frustrating" AI Laggard

① THE FILTER — what we screened out, what we keptWe scanned 40+ analyst actions on AVGO after its Sep 2 Q3 FY2026 print, the results, and the segment filings.We cut: the "why couldn't it match...
Broadcom's AI Revenue Grew 221% — and It's Still the "Frustrating" AI Laggard

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment（2）

  • Top
  • Latest
  • Meet0
    ·09-10
    TOP
    Broadcom already has AI revenue showing up quarter after quarter. I get the capex fear, but saying no AI business makes real money feels too broad.
    Reply
    Report
  • Guavaxf3006
    ·09-13
    When I say no AI company has been making money, I did not mean that the companies singing the AI songs have lost money.


    What I meant is the AI business specifically have yet to turn in an operating profit.
    The companies themselves have been declaring profit mostly from the value of their revenues and gross margins in suppying or selling chips and services. To other companies.


    No profit from the actual business of selling usuage to the consumers.
    Reply
    Report