尽管债务高企，但Broadcom的低估值（PEG低于1）使其具有吸引力，值得考虑买入。

OpenAI Nvidia Yappen. So, this is a Bloomberg piece that came in. Open AAI says its new Jalapeno chips performed better than Nvidia's current lineup during testing. So, we don't really know exactly what they're referring to because you've got these new chips coming out. semi. Oh, it was measured against the GB300. No way. Wow. Wow. That's impressive. The processor led in two categories. The amount of work it could handle per unit and its speed at returning responses, right? But it's not so much the issue of can you have a chip that's better. It's can you scale the chip? That's the question is can this actually get scaled up? Can they get the allocation from TSM or whomever or where they're creating them with the you know where they're creating their processors. So the maker uh well so OpenAI plans to use the new chips to support AI models later this year. Part of a push to build its own AI joining a stampede of companies trying to compete. This is a partnership with Broadcom. The Broadcom AS6. Oh, we were just talking about Broadco Broadcom in the um in the course member live stream. Broadcom's flat on the news. Wow.

This is a partnership with Broadcom. The Broadcom AS6. Oh, we were just talking about Broadco Broadcom in the um in the course member live stream. Broadcom's flat on the news. Wow.

In fairness, OpenAI will determine which of its AI models will run on Hollow customers to benefit by selecting options. In the lab, we're showing higher performance. I mean, some of this is also just going to be like IPO pitching.

Low latency domain. Yeah, that's important. The margins for these AS6 are still very good. Let's go look at a Broadcom. I wonder if I could pull out the But they do say the ASIC margins are lower. They warned that. I mean, I could just go to our tab on that. Let me see here. Bro, got to sign in again. Oh, it's so secure. You always got to sign in. You know, make it more secure. You got to sign in over and over again. Broad gum. Broad. So, our stock AI has Broadcom at a valuation forecast of $95 indicating it's got a 2 and a halfx. Somebody says probably a scam from Almond. No, this is this is Broadcom. These are Broadcom AS6. This is not uh OpenAI. You know, the way to I feel like play the value of that chip is you consider the ASIC producers which is uh Marll and Broadcom which are so but I found this very interesting. It's that uh the AS6 have lower margins. So, some pressure on margins from these compared to their other products, probably because they're sharing some of that with OpenAI, but that is interesting. Um, so I I do want to know if I could go deeper into the Broadcom earnings. And what I'd like to find is Oh, okay. I only have a press release. I don't think in the press release I'm going to get color on segment margin. So I need segments. Here we go. Revenue by segment. But they don't show margin. Okay, it'll I bet you it'll be in the 10 Q. Let's go get it. Broadcom Investor Relations. Uh, I need SEC filings. I just I just want the SEC version. I don't want your trashy crappy press release. Just give me what you tell the SEC. That's good enough for me. AV go. I don't want your crap. Just give me the document. Don't sue me, bro. That's right. That's right. Okay. So, I want segment. Segments. Look at this. disagregated, subscriptions, products, RPO, segments, semiconductor solutions, AI data centers. That's going to be where the A6 are. So, semiconductor solutions. Semiconductor solutions. No way. You don't say. It's right here. So, let's see what's happening with the margins. So costs are going up 2631 73.8% increase in cost. Yeah, but they like they didn't quite double. 1509 divided by 8408 78.5% increase in net revenue. So they're still growing. Pee here. Pee is still growing on semisolutions. And I mean, look at what they're what they're pulling to the operations here. Wow. It's actually really good. Divided by 1509 equals, bro, that's 61%. Uh to uh operating income from semi-solutions. Now, what's that? Oh, yeah. And then infrastructure software, which is also pretty high margin. That's very impressive. Uh so I'm going to mark that here. So this is uh segment margins. So they don't disagregate individually all the various different margins like oh our AS6 do this or our you know CPO products do this or whatever whatever whatever right but that's that's kind of exciting.

Let's go look at a Broadcom. I wonder if I could pull out the But they do say the ASIC margins are lower. They warned that. So, our stock AI has Broadcom at a valuation forecast of $95 indicating it's got a 2 and a halfx.

Somebody says probably a scam from Almond. No, this is this is Broadcom. These are Broadcom AS6. This is not uh OpenAI.

You know, the way to I feel like play the value of that chip is you consider the ASIC producers which is uh Marll and Broadcom which are so but I found this very interesting. It's that uh the AS6 have lower margins. So, some pressure on margins from these compared to their other products, probably because they're sharing some of that with OpenAI,

but that is interesting. Um, so I I do want to know if I could go deeper into the Broadcom earnings. And what I'd like to find is Oh, okay. I only have a press release. I don't think in the press release I'm going to get color on segment margin. So I need segments. Here we go. Revenue by segment. But they don't show margin. Okay, it'll I bet you it'll be in the 10 Q. Let's go get it.

Broadcom Investor Relations. Uh, I need SEC filings. I just I just want the SEC version. I don't want your trashy crappy press release. Just give me what you tell the SEC. That's good enough for me. AV go. I don't want your crap. Just give me the document.

Okay. So, I want segment. Segments. Look at this. disagregated, subscriptions, products, RPO, segments, semiconductor solutions, AI data centers. That's going to be where the A6 are. So, semiconductor solutions. Semiconductor solutions. No way. You don't say. It's right here.

So, let's see what's happening with the margins. So costs are going up 2631 73.8% increase in cost. Yeah, but they like they didn't quite double. 1509 divided by 8408 78.5% increase in net revenue. So they're still growing. Pee here. Pee is still growing on semisolutions.

And I mean, look at what they're what they're pulling to the operations here. Wow. It's actually really good. Divided by 1509 equals, bro, that's 61%. Uh to uh operating income from semi-solutions.

Now, what's that? Oh, yeah. And then infrastructure software, which is also pretty high margin. That's very impressive. Uh so I'm going to mark that here. So this is uh segment margins. So they don't disagregate individually all the various different margins like oh our AS6 do this or our you know CPO products do this or whatever whatever whatever right but that's that's kind of exciting.

Okay, so that's sent. Good. Okay. So, we have this uh let's think of what else. So, we've got cash flow at Nvidia. Another thing people are going to be looking for is that cash flow statement. I think there's going to be a lot of focus on how much they're throwing out at investments.

Surprising Broadcom isn't moving more on sort of the Google TPU news, but maybe that's somewhat just already built in.

And we looked at Broadcom. We've got this OpenAI. This was the OpenAI TPU news.

the inference chip basket. Okay, so you've got obviously Nvidia, which would could be at the 5090 level, it could be at the 6000 level, uh it could be at the Groke level, etc. Right? You've got Broadcom for A6. You've got and and the Google TPU, which is also in partnership with um Broadcom. You've got Marll A6 and uh you obviously you've got AMD competing TSM as uh the upstream sort of manufacturer manufacturer. You've got uh ASML as the upstream manufacturer for the manufacturer, right? But um who am I missing on on like I mean there are obviously a ton of other individual you know chip component manufacturers chip components uh like LSCC's in there uh you know plus many others uh Vertive etc right but I mean this is more of like your your traditional like let's this is I'll just call this more the traditional um you know all chip stocks we think and this this would be more inference only so I'm going to say not not the big boys like Vera Rubin.

You've got Broadcom for A6. You've got and and the Google TPU, which is also in partnership with um Broadcom.

And then Broadcom uh has a lot of debt uh rising CDS's but uh and uh they warn ASIC margins margins uh would uh will will pressure margins. So basically you know the AS6 aren't as profitable as some of their other their other work.

Open AAI says their TPU with Broadcom or I should say ASIC. I don't know if that's a TPU. ASIC with Broadcom Beats uh Nvidia's GB300 not yet tested against Vera Rubin for inference.

CDS's uh for Broadcom or rocketing. We could throw these up on screen. That's interesting. Nvidia is not on here. We could always add Nvidia, but this just I think I think the CDS's are really just hedging by uh hedge funds.

Let me grab this because think about like practically if you're long these stocks and then you get a credit default swap and they're rising in value, your hedge is actually going up while your potential exposure is going up. Uh ironic CDS um impact. So, as uh your AI stocks go up, your hedges have also been going up. So, you're winning both ways.

Insurance policies for default are going up and the underlying uh uh company values going up. you know, obviously, you know, the last couple months being a little uh a little funky, but but that is that is interesting. So, let's consider that for a moment.

So, where you're going to see that is going to be right purchases of non-marketable securities right here and marketable debt and equity securities. That's gonna be the next place you see a lot of this, I think, spawn in, if you will.

Okay, so let's go back here. Ultraast tokens. this double hedging. I mean, you're hedging your upside and your downside.

Let's see here. Okay. All right. So, let's go delete this. Let's go back to Okay, so you're buying you win both ways here. That's fine. Just trying to think of the implications for this for Nvidia. I mean, so really you could be long Uh this way you can be long AI and be protected by default and right now both are going up which you know doesn't really seem sustainable but it kind of also makes sense because you know and and the more debt the more debt spending uh the more CDS's rise but the more debt spending, the the more the underlying AI names get more revenue. So, you got this like crazy cycle right now where you could literally be hedged and be winning on your hedges and your upsides right now. That's wild. That's pretty wild. Okay, I think that's cool. All right.

Now, this jalapeno chip is made in partnership with Broadcom. Now, Broadcom is a really interesting play because they are pretty heavily indebted. Their balance sheet kind of sucks, but their valuation is dirt freaking cheap right now. Uh they are trading for under a one peg.

Broadcom according to our stock AI has a uh $95 price target. The issue is we have a red flag on the balance sheet for the company because they are so heavily um you know indebted. So, your your balance sheet is a red flag. valuation is just a clean green flag. They're down like 26% from their peak after their last earnings because of the timing of delivery of AS6.

Okay, so why what does this have to do with OpenAI? Well, they're doing the AS6 for OpenAI. That's they're also doing the Google TPUs. So OpenAI now like, hey, we're getting ready to tape these out probably bullish Broadcom. It's kind of bullish the whole stack.

I don't have exposure to Broadcom, but I really like Broad. Like I'm really tempted by it right now. $1.7 trillion company.

I personally think this right here, frontier tokens will represent like 10% of the slice. Labor will represent like 45% of the slice. Enterprise 45% of the slice. You know, it's probably something like that. And this would only be about 10% of the slice. That's my take for enterprise. I I could be wrong about that, but that's where my head is and that's where my investing thesis builds around uh AS6 rather than trying to sell the frontier level chips.

That's bullish for a company like Broadcom. But bear in mind, and this is in our stock tab as well. You can see this, join us, join the courses. But this is literally from their earnings call. We do a lot of research and we try to provide this every single day. Uh within semiconductors, we've always said our AS6 and TPUs have lower margins. So as TPUs continue to accelerate, there will be pressure on margins. Broadcom's margins are way better than Marll's, but Marll's growing into the Broadcom style margins in my opinion.

Broadcom's still flat. AMD is still sitting at about 775. It's been pretty stable there. A couple percent over here on Nvidia been pretty stable on the day.