NVIDIAs Blue Chip Stocks PostGrowth Broadcoms Soaring Surge The Fierce Man Behind the Momentum Chen Fuyang

Table of Contents
Toggle
Veteran Returns to the Scene to Revitalize US Stocks
The Ambiguous Relationship between Chen Fuyang and Trump: Once Used Each Other for Mutual Benefit
Broadcom and Nvidia
Is it Time to Buy?
Veteran Returns to the Scene to Revitalize US Stocks
Artificial intelligence and semiconductor-related stocks continue to heat up. In 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 globally optimistic artificial intelligence market will push this old semiconductor company (established in 1961) to new heights. Broadcom’s current CEO is Malaysian Chinese Chen Fuyang (Hock E. Tan), who has had a brilliant track record in aggressively acquiring several semiconductor companies.
Starting in 2013, under the leadership of Chen Fuyang, Avago Technologies (AVAGO) began acquiring chip companies larger than itself. Avago borrowed $6.6 billion from banks to acquire LSI, a storage chip factory in San Jose, Silicon Valley.
In 2015, under the leadership of Chen Fuyang, Avago 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 this transaction with $9 billion.
The Ambiguous Relationship between Chen Fuyang and Trump: Once Used Each Other for Mutual Benefit
Chen Fuyang once responded to Trump’s slogan of “Making America Great Again” by relocating Broadcom from Singapore to Silicon Valley in California. In 2017, Broadcom prepared to acquire Qualcomm, the world’s largest mobile chip manufacturer, at a price of $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 endanger 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, up 43% 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 from the same period last year.
Broadcom and Nvidia
Broadcom’s AI chip functionality is used to process large data for the OpenAI ChatGPT artificial intelligence application. Broadcom attributes the stock’s surge to strong market demand for AI chips and the effect of Broadcom’s acquisition of VMware by the end of 2023. VMware is virtualization software that runs on physical computers, as well as cloud data processing centers.
On the other hand, Nvidia’s core products are computer graphics processors, chips, and multimedia software design, operating through GPU graphics processing computation and network operations 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.
Is it Time to Buy?
Broadcom’s financial report for the second quarter of this year, released on June 13, far exceeded market expectations. Broadcom announced a 1-for-10 stock split on July 15. According to Bank of America’s prediction, Broadcom is likely to be the next stock to reach trillion-dollar market value. As of today, Broadcom closed at $1,735 USD, with a current market value of $804 billion.
According to Investopedia, in February of this year, Broadcom had a market value of $58.48 billion, making it the fifth-largest semiconductor company globally, behind Samsung, TSMC, Nvidia, and Intel. Bullish predictions from various sources suggest that Broadcom’s market value may climb to the top three semiconductor companies.
AVGO
Broadcom
NVIDIA
Artificial Intelligence
Broadcom
Further Reading
Apple’s AI Dream: Hoping to Gain an Advantage through AI Chip Development, with Software Enhanced by AI
Tether Ventures into the AI Industry! Tether Data’s AI Department is Recruiting: Avoiding Monopoly of AI Technology