Broadcom's AI earnings report this time has significantly boosted the volume, with revenue surging year-on-year, but the profit margin has also dropped noticeably. This combination itself is quite glaring.
I've been thinking all along, with such rapid growth, who will be left holding the bag in the end? Now it seems more like AI is driving scale, while the core business is holding up the profits.
For me, this phase of "good-looking revenue but thinning margins" is something to be wary of. I've already reduced my position. The market sentiment is very frenzied right now, and I don't really want to charge in at this level. It's more like saving up some bullets first, waiting for the market to clarify who's really making money.
$Broadcom(AVGO.US) $iShares Semiconductor ETF(SOXX.US) $VanEck Semiconductor ETF(SMH.US)
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