Broadcom might face ARCL similar prospect after this round of bubble pops
$Oracle(ORCL)$ has had explosive growth in the dotcom period and then took a long time to recover to its former high after the crash. I suspect Broadcom might face similar prospect after this round of bubble pops.
Broadcom, CA, VMWare have one thing in common, which is accounting fraud at various times. So I don't doubt they have the tendency to manipulate books to show revenue growth in a rosier picture given the pressure of justifying share price appreciation. However, it is hard to perpetuate a fraud this long. Maybe they do have something in the networking business. Still, where does the growth come from? All Broadcom did was mouse sensor at its start and then it started to acquire stagnant hardware divisions from various companies until its recent acquisition of the 3 software amigos, which are not some crown jewels as some believed. Security software is always dubious to begin with but I don't understand how it makes money.
I am familiar with CA (or computer associates) and VMWare. I have been using CA's junky software for 20 years and have been complaining about the same software bugs for 20 years until recently our organization finally dumped CA for a better vendor. I am still using VMWare's virtual OS but only at a minimum level. I don't see how people make use of these virtual OS since it is quite limited in usability unlike those you can find in cloud platforms.
Anyway, I just don't understand the reasoning behind all this excitement. I can understand why people thinks Nvidia will go to the moon. I still think Nvidia $NVIDIA Corp(NVDA)$ 's stock price is insane but I do use Nvidia GPU everyday for deep learning and I got students working at Nvidia.
I understand the rush to purchase the latest GPU to do large language model since it requires sufficient GPU memory like 40 or 80 GB. However, there is no continuous demand for GPUs because LLM training only needs some many GPUs and once they are purchased and deemed sufficient, these GPUs do last a long time. Just imagine what the market will look like when the excitement about Nvidia moves to something shiner.
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