Broadcom's AI Gamble: Are Investors Drinking the Kool-Aid, or Is This the Real Deal?

Broadcom again? Seriously, how many times are we gonna pump this stock based on vague AI promises? I swear, Wall Street's attention span is shorter than my last relationship.

Google's Gemini is the new shiny toy, and suddenly, anyone supplying them is a genius. AVGO stock price is up 10% because Google's AI is supposedly amazing. Nvidia stock better watch out, I guess. Give me a break. It's like saying the guy who sells shovels during a gold rush is richer than the miners. Maybe, maybe not.

This whole "Broadcom is a key Google supplier" narrative is being shoved down our throats. They make TPUs, the chips Google uses for AI. Okay, cool. But is this a sustainable advantage, or just a temporary sugar rush? I mean, nvda has been the king of AI chips for, like, ever. Are we really ready to dethrone them based on a few substack articles hyping Gemini 3?

The Hype Train vs. Reality

Mizuho analyst Jordan Klein is right to be cautious. All this "rotation into GOOG from avgo stock, nvda stock, amd stock" feels manufactured. It's like the market is a bunch of sheep, blindly following the latest trend. And offcourse, the sheep usually get fleeced.

Then you have Melius analyst Ben Reitzes saying the TPU has "tangible momentum." Okay, Ben, but let's be real: nvda stock price is still the 800-pound gorilla in the room. Everyone else is just trying to nibble around the edges. This ain't a zero-sum game, but let's not pretend Broadcom is suddenly neck-and-neck with Nvidia. Not even close.

The article mentions Broadcom's partnership with Google dates back to 2016. That's ancient history in tech years. What have they actually delivered in that time? Besides inflated stock prices, I mean. Show me the money, people.

The Long Game (or the Next Quarter's Earnings)

Five-year CAGR of 57%? 747% gain over five years? Those numbers are insane. But can they keep it up? The market is fickle, and AI is still the Wild West. One bad quarter, one slightly less impressive AI model from Google, and avgo stock price today could come crashing down. Broadcom (NASDAQ:AVGO) shareholders have earned a 57% CAGR over the last five years

They're paying a dividend, which is nice, I guess. Something to keep the wolves at bay. But dividends ain't gonna matter if the whole AI bubble bursts. I'm more interested in seeing real, sustained revenue growth, not just hype-driven speculation.

And what about the broader market? Msft stock and amzn stock are also playing the AI game. Meta stock keeps trying to reinvent itself, and tsla stock is... well, tsla stock is its own special kind of crazy. Where does Broadcom fit in all of this? Are they just a bit player in a much larger drama?

So, What's the Real Story?

Look, I'm not saying Broadcom is a bad company. They're clearly doing something right. But this level of exuberance feels premature. We've seen this movie before. Hype, speculation, followed by a brutal reality check. The question isn't whether Broadcom is a good supplier, but whether the AI revolution is actually going to be as transformative as everyone claims. And honestly, I'm starting to have my doubts.