A
Sep 17 at 02:22 AM
$Broadcom(AVGO.US)
Context:
Today’s Fed decision caught my attention. Rates rose 25 bps to 3.75%–4.00%, and the more hawkish tone added pressure to growth and AI sentiment.
For AVGO, I understand the uncertainty. Higher rates can pressure valuations, while investors are also questioning whether AI infrastructure spending can continue.
What keeps me from reacting too quickly is that Broadcom’s fundamentals remain strong. Its latest AI semiconductor revenue grew 221% YoY, so I see a clear difference between changing sentiment and a changing business.
My Trade:
I’m still holding AVGO. Macro conditions matter, but I don’t want one Fed decision to change a view built over a much longer time frame.
Instead, I’m watching what matters to the thesis: AI demand, customer spending, and whether Broadcom can keep turning that demand into sustainable growth.
Takeaway:
Today reminded me that having a long-term view doesn’t mean ignoring Fed or market risk. It means knowing what should actually make me rethink the thesis.
For now, I’m trying to react less and observe more.
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