--- type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/39573418.md" description: "The AI sector is heating up again recently, and I've taken another look at $Broadcom(AVGO.US) instead.Let's get to the conclusion first: I think AVGO isn't the type of stock that tells the best stories, but it's more like the kind you initially think is rising too slowly, only to later see it quietly hitting new highs. Why is it getting attention again recently?Because its current logic is very straightforward: it's eating from the AI infrastructure bowl, and not just nibbling at the edges—it's already got a real bite. Broadcom just said this month that it expects AI chip-related sales to exceed $100 billion by 2027, also mentioning that its Q2 revenue guidance is above market expectations and announcing a $10 billion buyback. This is exactly what the market loves to hear: not just painting a rosy picture, but delivering orders, revenue, and buybacks all at once.Moreover, unlike many pure-concept AI stocks, AVGO doesn't rely solely on sentiment. It deals in hard stuff like custom AI chips and network connectivity, and its clients are all on the big-tech route. Reuters mentioned that Broadcom benefits from the AI infrastructure spending of giants like Google, Microsoft, Amazon, and Meta, and the expected capital expenditure on AI from these behemoths this year remains substantial. Simply put, as long as the big tech companies keep spending, AVGO's line of business is unlikely to fizzle out quickly. But here's the problem: AVGO isn't without its concerns now.1️⃣ The first concern is that the market no longer sees it as an ordinary semiconductor stock but as a core AI asset. As long as expectations keep getting revised upward, it can rise; but once the market starts questioning "whether AI investment returns are really worth it," its valuation is likely to be re-examined. This worry has lingered since late last year and hasn't fully dissipated. Broadcom itself previously mentioned that while its AI business is growing rapidly, the increasing proportion of low-margin custom AI processors could pressure profit margins, so the market isn't completely free of concerns.2️⃣ The second concern is on the supply side. Broadcom was still saying this week that TSMC's capacity is currently a bottleneck. AI chips are in such high demand that even peripheral components like lasers and PCBs are tight. This news is half positive and half risky. The positive part is that it shows demand is genuinely strong, not fake; the risk is that having orders doesn't mean you can fulfill them all immediately.3️⃣ The third concern is that while its VMware software business has added a second growth curve, it has also brought controversy. Recently, a cloud industry group in Europe filed an antitrust complaint against Broadcom, focusing on changes to VMware's partnership policies. This might not directly hit the stock price in the short term, but it reminds the market: AVGO isn't a flawless, perfect AI play. So my personal view is:If you ask me if AVGO is worth a long-term look, I'd say yes. Because it's not just riding a hype wave now; it has turned the AI narrative into a real-money logic.But if you ask me if it's suitable to go all-in at this level, I'd say, definitely not.The biggest fear with this kind of stock isn't poor performance, but excellent performance that the market demands to be even better. Just one instance of failing to exceed expectations can easily lead to high volatility.My current understanding of AVGO is simple:It's a stock in the AI sector that leans towards "institutional taste."It doesn't have the overnight doubling thrill of small caps,but it's not a pure sentiment stock that collapses at the first sign of trouble.It's more like the type: as long as the big tech companies keep spending, it keeps getting orders;but once the market starts doubting AI investment returns, it will be among the first to get cut.In one sentence:I'm not bearish on AVGO, but I also don't want to act tough when everyone is super excited.This stock is better suited for looking at during pullbacks, not for chasing at highs.If I were to act, I'd rather go slow than take on others' emotional baggage at the peak.This is just my personal trading log and does not constitute investment advice." datetime: "2026-03-27T08:58:30.000Z" locales: - [en](https://longbridge.com/en/topics/39573418.md) - [zh-CN](https://longbridge.com/zh-CN/topics/39573418.md) - [zh-HK](https://longbridge.com/zh-HK/topics/39573418.md) author: "[周叔的半生](https://longbridge.com/en/profiles/27042583.md)" --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/topics/39573418.md) | [繁體中文](https://longbridge.com/zh-HK/topics/39573418.md) # The AI sector is heating up again recently, and I'… ### Related Stocks - [Broadcom Inc. (AVGO.US)](https://longbridge.com/en/quote/AVGO.US.md) - [Amazon.com, Inc. (AMZN.US)](https://longbridge.com/en/quote/AMZN.US.md) - [Microsoft Corporation (MSFT.US)](https://longbridge.com/en/quote/MSFT.US.md) ## Comments (4) - **三餐四季 · 2026-03-27T09:06:33.000Z**: The most frightening thing is when a stock that everyone thinks is stable suddenly experiences a catch-down. - **小狗在加班 · 2026-03-27T09:06:17.000Z**: It feels like it's not as much of a hot topic as NVIDIA. - **摸鱼小能手 · 2026-03-27T09:06:06.000Z**: Is it too high now? - **周叔的半生** (2026-03-27T09:07:19.000Z): It mainly depends on whether you can accept drawdowns.