With investors looking to create their own growth narrative, the market is in super delusional state when comparing the growth rate of NVDA and AVGO. This pump is full of speculations without real understanding of Broadcom's actual market as most investors do not even know the differences between Broadcom and Nvidia Chips.
Let's us compare a few key metrics:
P/E (TTM)
- Broadcom: 203
- Nvidia: 52
Revenue Growth (TTM) YoY
- Broadcom: 43.99%
- Nvidia: 152.44%
Revenue Growth (Q3) YoY
- Broadcom: 51.30%
- Nvidia: 93.61%
We are currently looking at the pump like what investors did last year to AMD. They aren't looking for actual growth, but rather a story of an underdog trying to challenge the incumbent. And we also saw the dump of AMD this year.
With Broadcom delivering 51% YoY growth, investors decide that Nvidia's 93.61% YoY growth is not impressive enough. We find that the recent Broadcom pump is too delusional and would be heading for a dump.
Is 93% Q3 YoY growth less impressive than 51.2% Q4 YoY growth?
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