AVGO近期股价下跌令人困惑，尽管盈利强劲（利润增长两倍，营收翻倍），但第四季度指引疲软。

Let's take a look at Broadcom's one-day chart, after the company released its earnings report late yesterday. It has now fallen by more than 6 percent. It seems to be dragging down the larger chip sector as well. There seems to be some disappointment at work in what is said in their earnings report. What was there was not enough. And it probably exacerbated the concerns that Wall Street already had about Broadcom.

I mean, you and I have seen the reaction after the initial disappointment with these numbers. We heard from Hock Tan, wondering what he had to say about why the situation isn't turning around today.

Because I'm also seeing some reactions from the sell side, which seem inconsistent to me. I mean, we've seen price target increases, price target reductions, and even upgrades from Macquarie. Please explain to us what is actually happening here.

Yes, there were many good points here, Sam. I mean, like you said, we covered it on-air yesterday. And there was a lot to like here. Their profits tripled in the third quarter and revenue nearly doubled. So, in my opinion, there were some great numbers.

Hock Tan also said that they expect semiconductor demand to continue for at least the next 2 years. The real problem here is the guidance for the current quarter, that is, this fourth quarter. Which was a little weaker than expected. So, I think this is what is affecting the market price.

EPS was 3.32, better than the expected 3.22. Revenue increased by 86 percent to Rs 29.59 billion. Which is more than 16 billion in the same period of the previous year. This also exceeded expectations. As I said, net income has more than tripled. This stands at 13.09 billion, or $2.68 per share.

Now, Broadcom is one of the major winners in the rise of AI, or artificial intelligence. They design custom chips for companies like Google, OpenAI, and Meta. They have started shipping the latest generation of that Google TPU and OpenAI's Jalapeno chip. And they say they are already developing second and third generation chips for OpenAI. They said custom chips for Meta will start shipping this quarter.

Revenue from total semiconductor solutions reached $20.84 billion. It was better than expected.

73% of the company's total AI semiconductor revenue of $16.7 billion in the third quarter came from the custom chip business. This is a growth of more than 220% compared to last year. This number was better than the market's expectation of under $16 billion and the company's forecast of around $16 billion. It is expected to reach $21.7 billion in the fourth quarter. So, this statistic was quite strong.

For fiscal year 2027, Hock Tan said they aim to double their AI revenue to $115 billion. The market expectation was $100 billion and there are plans to double it again to $230 billion in fiscal year 2028, so these figures are quite positive.

They have set a target of earnings of $30 per share by 2028. The market consensus for fiscal 2028 was for earnings of about $25.86 per share. So again, better-than-expected results, but slightly below the $34.8 billion revenue forecast for the fourth quarter. Analysts were expecting more than $35 billion.

So this is what we're basically thinking about, maybe the customer centricity issue is also linked to this, but as you mentioned, the sales parties are talking. You mentioned Macquarie, so let's discuss that note.

Macquarie upgraded Broadcom from neutral to outperform and set a price target of $490. They say their Anthropic purchase in fiscal 2028 will offset any losses Google makes,

and Bank of America has cut their price target from 530 to 460. So they lowered the target while maintaining a buy rating. They said they adjusted their estimates, but they also lowered the multiple as the sector multiple decreased, and that's what Sam, lowered the price target.

So, there's been a mixed reaction to these numbers, but the numbers they reported this quarter were pretty strong. Tell us about an example trade with AVGO today. Naturally, there is pressure on shares, which is also pulling the entire chip sector downward.

AVGO shareholders may be upset today, but looking at the net return, they should be happy, there is nothing to worry about. We are seeing our income almost doubling. We are seeing our AI chip sales triple. We're talking about AI demand in '27, '28, which is skyrocketing. Yes, there was a slight shortfall in the next quarter, but that was a very small risk. So, I am confused about this price drop.

It seems like the entire AI trade is caught up in this market tug-of-war. With oil prices above 90, there are strong concerns about inflation. It is very logical to think or worry about these things. Therefore, we are concerned about its impact on the market in the short term. Big employment data is coming tomorrow. What impact will that have on interest rates? And I think the whole AI trade is inextricably linked to interest rates. So, yes, I think a lot of things are uncertain in the short term.

With this in mind, given the price declines and short-term uncertainty in the stock market—which of course affects AI trading more—I would consider selling a put and entering at this low level by collecting the premium. Without buying shares directly, yes, I'm just talking about short-term uncertainty. I will keep an eye on the September 340 put. Currently, the selling price of that put is around $7.80. Approximately, I can buy AVGO for $333. You know, it was 360 recently, so I think it's a very interesting place to buy. If I don't buy, I can sit on the sidelines and collect a 2% premium for a few weeks, where nothing will happen.

Okay. I'm keeping an eye on Broadcom today, which is down 6.7% now, but the rest of the market is up today, Joe.