This place isn't an AI semiconductor company, right?
[I'll start by telling you the conclusion - buy on dips!]
*This is just my personal opinion. I'm not an investment expert or anything, you know, just me.
*But I'm really convinced, and even if I lose money, I won't regret it.
[Below is a long monologue lol]
Broadcom is mainly used for building enterprise datacenters, with semiconductor manufacturing as its main business.
In simple terms, it's semiconductors that are integrated into network devices like routers and switching hubs.
It's actually more diverse and complicated, but it's not important so I'll just skip it.
So, the conventional datacenter construction method was to connect multiple servers with network equipment.
But now, with virtualization, it's possible to build a network that connects multiple servers within one server.
It's a natural progression for Broadcom to acquire the virtualization giant VMware, because the demand for the semiconductors used in network equipment has decreased.
So, shifting from the previous network semiconductor technology to virtualization-specific semiconductors and technology development and provision is happening right now.
Of course, the sales of network equipment semiconductors, which used to be the main selling point, will decrease. And by acquiring VMware, the world's strongest virtualization company, there will be significant expenses for a while.
Since the sensational debut of ChatGPT, every company has been excessively investing in datacenter construction for development environments. So, regardless of physical or virtual networks, the demand for Broadcom's various products was excessive.
That's why there was a misconception that Broadcom is synonymous with AI semiconductor generation, even though Broadcom hardly manufactures semiconductors like NVIDIA.
To put it bluntly, it's a company that is closer to becoming a network equipment giant like Cisco and is involved in a wide range of infrastructure businesses, among other things.
And as for what's going to happen in the future, they will provide technology and components for building datacenters that specialize in virtualization technology.
Products used in datacenter construction, including servers, are like consumables, so there is a constant need to replace the datacenters built by various companies every 3 to 5 years. The temporary large expenditure incurred from the acquisition of WMWare will also be resolved.
I'm not very knowledgeable about investments or stocks, but whether AI semiconductors become obsolete or not, it doesn't mean that cloud datacenters suddenly disappear, so I don't understand why there is so much fuss.
Moving from physical networking to a company that enables the strongest virtualization construction, it is normal for them to be in the red for a while. It's just that the period of being in the red was delayed because there happened to be an AI boom and excessive demand.
That's why I think Broadcom won't collapse or anything. With slightly loose but generally positive growth, if there continues to be demand for AI, they will benefit even more as an 'infrastructure company' and improve their performance.
And there won't be a collapse of the AI boom, right?
The rapid boom like before might calm down, but it's just that the time has come to create more resilient and practical AI that is more robust and has fewer bugs.
If another breakthrough like ChatGPT comes along, the future world might actually come true.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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半導体と生成AI銘柄を中心に日本の投資信託で買ってます。
元々ドル建て個別株→S&P超えできず😅
基本フォロバします
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