AVGO - Broadcom Inc.

Broadcom had a solid earnings report but didn't raise guidance as much as expected ($100B for 2026, $140B for 2028). The market sold off on capex concerns. The hosts see the AI ecosystem story intact but note the uncertainty.

The host holds Broadcom as a secondary position to Nvidia. He believes Broadcom will dominate the custom ASIC/XPU chip space as companies like OpenAI, Anthropic, and Google require specific chips for specific use cases that come directly from Broadcom.

Custom silicon thesis: as hyperscalers like Google build TPUs, Broadcom is the manufacturing partner. Potential for $50B/year in chip sales from Google alone. 100%+ YoY semiconductor sales growth. Clear winner alongside Nvidia in AI infrastructure.

Host recently bought a stake after earnings. Stock fell 8% after he bought in. Up 2% in overnight markets. Seen as a guaranteed beneficiary of AI buildout alongside Nvidia, TSMC, and ASML.

Broadcom's earnings missed expectations, raising concerns about the semiconductor sector.

Broadcom is involved in creating custom AI chips, presenting a significant opportunity.

Initiated new position as a diversified AI infrastructure play. Broadcom is the primary TPU supplier for Google, works on custom ASIC projects for OpenAI and Anthropic, and benefits from companies reducing reliance on Nvidia. CEO Hock Tan has strong incentive compensation tied to reaching $120B+ in AI revenue by 2028. Bought on oversold earnings reaction.

Broadcom crashed 12% on record earnings with 48% revenue growth and doubled AI revenue, cited as the 'first domino' of capital rotation out of AI proxy stocks into upcoming IPOs. The stock had already rallied 40% and the market is no longer rewarding good news, signaling late-cycle behavior.

Broadcom missed revenue slightly and failed to raise guidance, triggering a nearly 15% drop. Soloway notes the stock broke below a key trendline and could erase gains back to mid-April levels. He sees this as a potential bubble burst signal.

Soloway mentions he will be eyeing a day trade opportunity if AVGO pierces $400 (around $395), looking for a bounce at those lows as a day trading setup.