$Broadcom(AVGO.US)

Context:

AVGO is down around 1.15% today, and Hock Tan's latest comments actually gave me something more important to think about than the stock price.

He believes capital could become the biggest bottleneck for AI growth, even as chip and memory shortages improve.

That's interesting because we've spent so much time talking about how much computing power AI needs, but not enough about who's going to pay for all of it.

My Trade:

I'm still holding AVGO. The recent weakness doesn't really shake my longer-term view, but I'm not ignoring the risks either.

Broadcom has exposure to custom AI chips and networking, and I still like its position in that ecosystem. What matters to me now is whether customers can keep funding these massive AI projects and turn that spending into actual returns.

If that starts changing, I'll need to rethink my thesis. A red day alone isn't enough.

Takeaway:

I used to focus more on how fast AI demand could grow. Now I'm paying closer attention to how sustainable that demand actually is.

AI doesn't just need better chips. It needs a business model that can pay for them.