Veteran returns to revitalize U.S. stocks
Artificial intelligence and semiconductor-related stocks continue to be feverish. In the past two days, global IC design giant Broadcom Corporation (NASDAQ: AVGO) soared 15% at the opening of trading last Thursday, setting a record high for the company.
Experts from all sides believe that the globally optimistic artificial intelligence market will push this old semiconductor company (founded in 1961) to new highs. The current CEO of Broadcom is Hock E. Tan, an overseas Chinese from Malaysia. He has achieved great success in the past and has unceremoniously acquired and acquired several wafer semiconductor companies.
Beginning in 2013, AVAGO, with Chen Fuyang as CEO, began to acquire chip companies with greater output value than its own. Avago raised $6.6 billion from banks to acquire LSI, a storage chip plant in San Jose, Silicon Valley.
In 2015, Avago led by Chen Fuyang spent another US$37 billion to acquire Broadcom, a San Jose chip company in California. At the time, it was the largest acquisition in the semiconductor industry. Avago financed the deal with $9 billion.
The ambiguous relationship between Chen Fuyang and Trump: They used each other to get what they wanted
Chen Fuyang once moved Broadcom from Singapore to Silicon Valley in California in response to Trump's "Make America Great Again" slogan. In 2017, Broadcom prepared to acquire Qualcomm, the world's largest mobile phone chip manufacturer, at a price of US$70 per share. On March 12, 2018, then-US President Trump blocked the merger on the grounds of national security. Trump said: "It has been confirmed by reliable sources that Broadcom's acquisition of Qualcomm may impede U.S. national security."
According to Robinhood's 24-hour live feed, 84% of retail investors were buying, 16% were holding, and 0% were selling on Thursday's all-time high.
Broadcom's Q2 second-quarter revenue of $12.48 billion surged 43% to $8.73 billion compared with the same period last quarter, 4% higher than the $12.04 billion estimate. Analysts from all walks of life on Wall Street attributed the revenue growth to the US$310 million in revenue brought by AI chips. The overall performance increased by 280% compared with the same period last year.
Broadcom VS Nvidia
Broadcom's AI chips are capable of processing big data used by OpenAI ChatGPT's artificial intelligence applications.
Broadcom said the stock surge was driven by strong market demand for artificial intelligence chips and Broadcom's acquisition of VMware in late 2023. VMware is a virtual host software that runs on physical computers and is also a cloud data processing center.
Nvidia's core products are computer graphics processors, chips and multimedia software manufacturing and design, and Graphic Cards by GeForce that operate through GPU graphics processing and network operations.
The NVIDIA Unified Platform integrates three architectures: GPU, DPU and CPU to improve data computing performance and security.
According to Huida's official website, the acceleration system is the next stage of computer development. Just as all today's smartphones are equipped with graphics and artificial intelligence processors, every server and workstation will be equipped with computing accelerators to power today's modern applications.
Is it time to buy?
Broadcom announced on June 13 that its financial results for the second quarter of this year were much higher than market expectations. Broadcom announced that it would split its stock 10 for 1 on July 15. Broadcom is likely to be the next stock to hit a trillion-dollar market capitalization, according to Bank of America forecasts. As of today, Broadcom closed at $1,735 USD, with a current market capitalization of $804 billion.
According to Investopedia, Broadcom's market value in February this year was 58.48 billion, making it the fifth largest semiconductor company in the world. The top four were Samsung, TSMC, Huida and Intel. Broadcom’s bullish predictions are likely to overtake its market value and climb it into the top three semiconductor companies.
What’s interesting is that Broadcom’s M&A strategy is both optimistic and negative at the same time. Analysts believe that Huida knows how to use financing to buy companies with a larger output value than its own and is worthy of praise for its way of grabbing the global semiconductor market. At the same time, there are also many people who despise this monopoly method of grabbing the market. It is too ambitious and a large number of retail investors follow suit. If you enter the market with anger, you may be cut off after the stock is diluted by a 10-for-1 stock split, causing market risks.
This article is a blue chip stock after Huida! Broadcom’s surge: The hot and ruthless man behind the surge, Chen Fuyang, appeared first on Chain News ABMedia.
