The BlueChip Stocks After Nvidia Broadcom Soars The Powerful Man behind the Momentum Chen Fuyang

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Veterans Resurgence Revives US Stocks
Ambiguous Relationship between Chen Fuyang and Trump: Once Mutual Utilization for Mutual Benefit
Broadcom and Nvidia
Is it Time to Buy?
Veterans Resurgence Revives US Stocks
The fever continues for artificial intelligence and semiconductor-related stocks. Over the past few days, global IC design giant Broadcom Corporation (NASDAQ: AVGO) surged 15% at the opening last Thursday, setting a new historical high for the company.
Experts from all sides believe that the global enthusiasm for the artificial intelligence market is propelling this long-standing semiconductor company (founded in 1961) to new heights. Broadcom’s current CEO is Hock E. Tan, a Malaysian Chinese who has had a glorious past, boldly acquiring several wafer semiconductor companies through aggressive mergers and acquisitions.
Starting in 2013, under the leadership of CEO Hock E. Tan, Avago Technologies (AVAGO) began acquiring chip companies with larger market values than their own company. Avago financed $6.6 billion to acquire LSI, a storage chip factory in San Jose, Silicon Valley.
In 2015, Avago, led by Hock E. Tan, once again spent $37 billion to acquire Broadcom, a chip company in California, making it the largest acquisition in the semiconductor industry at the time. Avago financed $9 billion for this transaction.
Ambiguous Relationship between Chen Fuyang and Trump: Once Mutual Utilization for Mutual Benefit
Chen Fuyang once responded to Trump’s slogan “Make America Great Again” by moving Broadcom from Singapore to Silicon Valley in California. In 2017, Broadcom prepared to acquire the world’s largest mobile chip manufacturer, Qualcomm, for $70 per share. On March 12, 2018, then-President of the United States, Trump, blocked the acquisition on national security grounds. Trump stated, “Reliable sources confirm that Broadcom’s acquisition of Qualcomm may impede U.S. national security.”
According to Robinhood’s 24-hour real-time information, when setting a new historical high last Thursday, 84% of retail investors bought, 16% held, and 0% sold.
Broadcom’s Q2 revenue for the second quarter was $12.48 billion, a 43% increase from the same period last quarter to $8.73 billion, 4% higher than the estimated $12.04 billion. Wall Street analysts attribute revenue growth to AI chips, bringing in $310 million in revenue, a 280% increase over the same period last year.
Broadcom and Nvidia
Broadcom’s AI chip functions to process big data used by OpenAI ChatGPT’s artificial intelligence application. Broadcom attributes the stock’s surge to strong market demand for AI chips and the effect of its acquisition of VMware by the end of 2023. VMware is virtualization software that runs on physical computers and is also used in cloud data processing centers.
On the other hand, Nvidia’s core products are computer graphics processors, chips, and multimedia software design, which operate through GPU graphics processing and networking for the metaverse and gaming chips (Graphic Cards by GeForce). Nvidia’s cloud acceleration platform (The NVIDIA Unified Platform) integrates GPU, DPU, and CPU architectures to enhance data computing performance and security. According to Nvidia’s website, acceleration systems are the next stage of computer development. Just as all smartphones today are equipped with graphics and artificial intelligence processors, each server and workstation will also be equipped with computing accelerators for modern applications today.
Is it Time to Buy?
Broadcom’s quarterly earnings for the second quarter this year, announced on June 13, far exceeded market expectations. Broadcom announced a 1-for-10 stock split on July 15. According to predictions from Bank of America, Broadcom is likely to be the next stock to reach a trillion-dollar market cap. As of today, Broadcom closed at $1,735 USD, with a current market value of $804 billion.
According to Investopedia’s report, in February this year, Broadcom’s market value was $58.48 billion, making it the fifth largest semiconductor company globally, with the top four being Samsung, TSMC, Nvidia, and Intel. Bullish predictions from various sides may likely propel market value to overtake and climb to the top three semiconductor companies.
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NVIDIA
Artificial Intelligence
Broadcom