What's Going On With Broadcom Stock Wednesday?
Broadcom (AVGO) slips over 1% premarket amid rising Treasury yields and tech pressure. Get the latest price action and market setup.
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U.S. stock futures declined on Wednesday, as the Dow Jones, Nasdaq 100, and S&P 500 indices fell, following Tuesday's higher close.
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Broadcom (AVGO) slips over 1% premarket amid rising Treasury yields and tech pressure. Get the latest price action and market setup.
Broadcom's AI semiconductor revenue surged 221% year-over-year in Q3, driven by custom AI accelerators (XPUs) designed with hyperscalers like Google, Meta, and OpenAI. Custom chips offer better power efficiency, faster inference, and higher returns on capital compared to GPUs, making them increasingly attractive as hyperscalers face capital constraints. While Nvidia's data center business is currently 4x larger, custom silicon is winning by volume among major customers and could eventually become a bigger business than GPUs.
Warren Buffett's lesser-known portfolio managed through New England Asset Management (NEAM), a Berkshire Hathaway subsidiary, has significantly reduced positions in AI stocks Alphabet and Broadcom during Q2, citing concerns about AI bubble valuations. Instead, the portfolio has allocated over $149 million (17.3%) to S&P 500 index funds (SPY and VOO), reflecting Buffett's long-standing recommendation for retail investors to invest in low-cost index funds that have generated positive returns over every 20-year rolling period since 1900.
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