I’d see a weak stock reaction to another Broadcom blowout quarter as a valuation issue first, not necessarily a sign that the AI infrastructure trade is overheating.
The market already expects explosive AI spending, so strong results alone may no longer surprise investors. The real test is whether Broadcom can raise future guidance, expand custom ASIC demand and show continued strength in networking.
If revenue beats expectations but guidance disappoints, that would be more concerning. It could indicate hyperscalers are becoming more disciplined with CapEx.
But if Broadcom keeps raising its outlook, the bigger story remains intact: AI spending is moving beyond GPUs into ASICs, networking, memory and storage.
In my view, the AI trade isn’t ending—it’s broadening. The biggest risk is simply that valuations are now pricing in too much perfection.
@WallStreet_Tiger [微笑]
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