Hock E. Tan

This is after falling more than 5% yesterday.

CEO Hock Tan, joining our own Jim Cramer on Mad Money last night, saying he is not in the least concerned about the AI slowdown debate impacting his company's optimistic sales outlook for chips.

We see the demand for compute infrastructure for AI development or AI frontier models and inference for the products that they feed to the world as continuing to be very strong and I believe very durable.

All right, we're watching, of course, the rest of the AI chip trade in the pre-market, given that big sell-off yesterday.

And, you know, I think the market went too far in assuming that that meant a slowdown in the build-out of the infrastructure for AI, which I don't think he was suggesting that at all.

And in fact, today, Broadcom CEO, Hock Tan, came, came out and said, "We're not seeing any slowdown in spending in AI." And, uh, he pretty much refuted what the market was buying into yesterday.

Uh, and while the Nasdaq was only down like sixty basis points yesterday, the chip stocks were down anywhere from three to eight percent.

But don't forget, they're up anywhere from fifty to, to two hundred to three hundred percent so far in twenty twenty-six.

Here is the comments by Broadcom CEO, who dismisses an AI slowdown.

He stands by his long-term revenue goals.

Broadcom CEO, Hock Tan, he's been with them a long time, dismiss fears that...

In fact, we wrote up Broadcom a couple of weeks ago in the newsletter with the whole history of them, about how they were headquartered in Los Angeles, Broadcom, and a company in, uh, Singapore by the name of Avago Technology, hence the symbol AVGO, merged with Broadcom, took on the Broadcom brand, the Broadcom name, Hock Tan, the CEO, and they put up some very impressive numbers for investors, uh, over the last, well, three, five, and ten years.

And I just did not get that from any mainstream media at all.

And then, Jim, of course, you talked to Hock Tan yesterday about AI revenue, and he does not see this slipping at all, although I think he did say that safeguards are important, but that AI is, in his words, not a live animal that will run wild by itself.

Exactly.

And I think that one of the things that really saw the hardware stocks go down, and of course the software stocks rally, including Salesforce, where I am today, was refuted by Hoctan.

We see the demand for compute infrastructure, for AI development of AI, and and inference as incredibly strong and durable.

So I know those stocks were the most heavily hammered other than the fiber stocks.

But David, when you listen to what Hock Tan said last night on Mad Money, you are inclined to do buy.

We see the demand for compute infrastructure for AI development or AI frontier models and inference for the products that they feed to the world as continuing to be very strong and, I believe, very durable.

... you know, increasingly in this world in which there are lots of different capabilities that are being put to work.

Despite Hock Tan's comments that you really should be-

[laughs]

... entirely on Broadcom-

Driving much of that cost was the removal of existing SKUs in favor of the CloudFormation SKU, a package that includes vSphere, vCenter, NSX, vSan, and whatever they renamed vRealize to this week, and a whole bunch more.

Hock Tan, CEO of Broadcom, was pretty clear that he intended to focus on VMware's biggest customers, those who would probably want VCF to the exclusion of all others.

If you wanted to stay on the VMware train, you had to pay the massively increased cost.

The new vSphere standard SKU is firmly aimed at SMBs with a distinct lack of the ridiculous number of features bundled with VCF that most people will never use, but somehow still need to patch on a regular basis, 'cause we love patching.