Broadcom

Again, go Google search it.

Broadcom bought VMware.

It's a complete and utter shit show.

Anyways, many, many, many, many companies are getting the fuck off of VMware because it's a fucking disaster.

And this latest move up today shows that there's still additional blue sky in the market.

When you look at this space and we sort of think about how it's evolved over the last several years, it really started with the hyper-specialized high-powered chips that companies like mostly just Nvidia initially rolled into Broadcom.

AMD finally joined the party.

Even Intel started to join.

So I don't expect any real action coming from this recent bout of concern.

And I expect the chip makers such as NVIDIA and Broadcom and related software makers are going to do just fine.

And one of the biggest, I guess we'll call it pushbacks against this narrative for a slowdown is that, yes, there are seemingly legitimate fears here at home about AI, but it is a global race that we are in for AI.

So is there a way in your viewpoint where we can strike a balance that makes both sides happy, where there's some sort of more controls or regulation, whether or not that's federal or self-regulated.

So that's where they're going to give their multi-year forecast.

You know, we've heard very bullish forecasts from NVIDIA, very bullish broadcasts from forecast, sorry, from Broadcom.

And I think folks are kind of starting to wrap their heads around this as AI adoption and usage continue to expand need capacity.

But here's the thing, Alex.

AutoZone's different, so... very very much looking forward to them seeing how their earnings are going to turn out big risk there is that part goes away that the suppliers start talking about go ahead and paying up front for your the inventory so that's a very exciting one and I'm very I'm ready to see it who else came out or who else came out last week I guess I

mean you had Broadcom that beat on earnings they're kind of beat up they had a big a big dip in the market a few months ago we've been keeping an eye on them but they're starting to kind of make a curl at the end of the end of

the chart I think over the last three months Momentum's been a scary place to be.

Any kind of big AI names have been beat up a lot.

So just a small breather.

But there's been a lot of money that's been given back in AI.

Broadcom was very much a part of that.

And they have their fingers or tentacles or whatever you want to call it and they're near every piece of the data center build out.

So typical pricing for debt is only 100 to 150 basis points above the guarantor's borrowing costs there.

Now, the Financial Times has highlighted that Meta, Broadcom, and Nvidia have adopted these arrangements for major AI infrastructure projects and that the structures accelerate the AI investment while preserving credit ratings and accessing low debt.

But there is a real risk to this, Bryce.

you know, effectively, if they're creating this contingent exposure of AI demand, and if it disappoints, you know, because the asset value declines, then it's going to be an issue because the credit rating agencies are just leverage assessments to reflect the potential liabilities.

We've spent a lot of time talking about AI, but I think everyone wants to know.

I think investors sometimes can focus a little too narrowly on the obvious beneficiaries like NVIDIA, Microsoft, Amazon, Alphabet, Meta, Broadcom, and other semiconductor equipment names.

The big story may be what happens when AI starts making the entire economy more productive.

That's the second leg of this trade.

Joining us to make sense of all of it is Alan Maxwell.

So he's our Catalyst Business Leader and one of my colleagues here at the Enterprise Security Group at Broadcom.

Alan's just wrapped a six-part series on security.com called The Resilient Channel.

And at the end of this final post, he teed up this conversation as a place to bring the full story together.

The entire stock market is about $70 trillion.

We've got Apple, Google, Nvidia, Tesla, Broadcom.

And we're, for better or worse, leading the AI revolution.

So there are a lot of critiques you can make of blue states.