Episode summary
Broadcom Slides by Most in More Than a Year on AI Outlook Miss | Bloomberg Intelligence
Bloomberg Intelligence
· · Hosts: Paul Sweeney, Scarlet Fu · Guests: Mandeep Singh, Bailey Lipschultz, Gene Munster
Summary
Broadcom’s stock fell after investors were disappointed that its AI-chip outlook did not show the kind of upside they had been hoping for, even after the company’s Anthropic-related momentum. A guest argued the print was still strong, saying Broadcom is growing topline over 60% and could keep doing so for the next 2 to 3 years, but the market wanted a bigger lift to guidance. The discussion centered on whether Broadcom should have raised expectations more after news that Anthropic’s backlog and Google TPU demand could be a major tailwind.
The conversation also framed the selloff as part of a broader AI valuation reset, noting that CrowdStrike had also disappointed investors with modest sales guidance because it did not lean hard enough into coding agents, which the guest said are where most incremental AI spend is going. The host and guests repeatedly returned to the idea that markets are now rewarding companies that explicitly connect their revenue story to the hottest AI use cases.
A large share of the episode focused on SpaceX’s planned IPO, which the reporter described as a landmark offering tied to Elon Musk’s control, a fixed valuation, and a compressed marketing timeline. The guest at Deepwater Asset Management called SpaceX a long-term company to own, arguing that investors should look past the near-term IPO noise and focus on its vertical AI and infrastructure ambitions.
Key takeaways
- The guest said Broadcom’s growth remains strong, but investors were dissatisfied because the company did not lift guidance enough after the Anthropic and Google TPU headlines.
- The host framed Broadcom’s selloff as a company-specific reaction to expectations, not a broad problem with AI semis.
- The guest said CrowdStrike’s softer reaction reflected the market’s obsession with coding agents, where he thinks most incremental AI spending is going.
- The reporter said SpaceX’s IPO is being marketed on a compressed timetable with a fixed price range and broad investor interest already built in.
- The Deepwater guest argued SpaceX should be valued as a long-term AI and infrastructure company, not just as a space business.
Notable quotes
“this is a company that's growing topline over 60% and it's going to do that at least for the next 2 to 3 years that's very solid”
“everyone is trying to triangulate here. If Google is doing more business with Enthropic and Enthropic's backlog is 200 billion, should Broadcom be getting a piece of that pie”
“it's really kind of the line is set drawn in the sand. The stage is set. It's a question of how much you're in for or not in for at this point”
“this is a fundamental company to own for the long term. And let's just skip all the noise around what's happening with the IPO”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10 a.m.
Eastern on Apple CarPlay and Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcasts or watch us live on YouTube. Let's bring in Mandep Singh, our global tech research head here at Bloomberg Intelligence to talk more about what we're hearing from a company like Broadcom, whose ticker by the way is AVGO, so it always gets confusing.
It does. — Aago, that's what it used to be before it was renamed Broadcom. — I didn't know that. — Um, and runs Broadcom, formerly Avago. Is he someone who tends to be conservative in his outlook? I mean, this was a disappointing outlook for investors who wanted more, but is he by nature conservative? Could that be part of it? I would characterize it slightly differently. He's not like Jensen who really would always, you know, go big in terms of his numbers and he will always talk trillions.
Hawkan on the other hand is more I I would say grounded in the sense like yes he would talk in terms of gigawatts and you know how uh he has got more customers now but he won't make any bold bets around you know 4 trillion 5 trillion. So we didn't uh hear those sort of numbers but look overall I thought the print was solid whenever you see you know valuations really go up so much in anticipation of good earnings and you could say the buy side bogey was higher and they didn't live up to the estimates but to me this is a company that's growing topline over 60% and it's going to do that at least for the next 2 to 3 years that's very solid
So is is this a company that is setting the bar low and is that the way that perhaps some of these hardware companies need to be going into earnings announcements setting the bar low so that they can easily top it and then kind of wow people at the end of the day.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- ai semiconductor revenue
- broadcom earnings outlook
- spacex ipo
- nasdaq listing
- tech stocks selloff
Companies and tickers mentioned
- AVGO
- Broadcom
- SpaceX
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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