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Hi there! This is the BEST Broadcom Software video, which isn't widely known or covered. Not surprising coming from "non-robots" like you guys :) :) Great coverage. The software business initially was meant to stabilize the cyclical nature of the company, not for hyper growth. Hock was smart enough to capitalize on the new trend when he bid to take over VMWare and it will pay off over time. It is giving the company a good runway for much longer now. It is run like a private equity and it's very diversified.
Bought a small position in 2022 and thought I had sooo much time to add more, hit the low with my buy but at the end it was just a starter position and never thought it would run that wild up and up. Wish I had a chance to add more at $500…
Hock did say they are going to work hard to reduce the debt AND to get operating margins back up to ~65% (which is incredibly good). I believe they're going to get there by Q4 this year, perhaps Q1 next year, but they'll get there and sooner than expected. As to valuation: All you said is exactly right. It's not cheap, certainly not like 2-3 yrs ago, BUT, it doesn't feel like it's "insanely priced". If the AI hype will slow down, then this stock will drop, but I don't know that it will slow down in the next year or two. It feels the price is "frothy", but not crazy. Also, I wouldn't rule out Hock surprising to the upside later this year. I also wouldn't rule out another acquisition in 2025 or 2026.
Broadcom one of the best semiconductor companies in the world. Hock Tan is one of a kind CEO. Their disciplined M&A is state of the art. I think only Constellation Software and Danaher can compare.
is symantec meaningful in today's world of cybersecurity software ? i remember couple of years ago that their software agent installed on user machines was totally crap, so much overhead in resources e.g. cpu.
Great question, I guess we'd say probably not! At least not in the type of user-facing security products. But for enterprise? Maybe. Not exactly a high growth business.
I own AVGO but still I think that if Hock moves on too hard with WM Ware, customers will move to KVM and other virtualisation software or even more towards containers like Dockers that preserves compute resources much better. I still think their network solutions will go really well together with customer specific products like AI-chips.
i was thinking exactly the same thing - what is vm ware's future when you see that docker and kubernetes is taking the resource virtualization market by storm.
Hock clearly stated he does not care about SMB. This is his strategy. In terms of customer migration. He already said he has the top 2,000 entperise customers locked in for a couple years. He also stated extremely strong bookings inspite of price increases. We are Only 3 months on book with VMWare. Much more growth to go. If dockers were better than more people would use it. VMware is deeply entrenched in many organizations' infrastructure, with a strong market position in server virtualization and cloud partnerships, making it difficult for customers to switch.
@@Jai-qf8lw We’ll see, I will keep my shares, but the friends I have in IT-tech, most make new services for containers and microservices to make the product very scalable. Companies have a hard time to change fast, maybe you are right and it’s the right way forward. I hope so as a shareholder.
@@Jai-qf8lw docker and kubernetes are gaining more and more traction over time, just look at CNCF initiative youtube channel and video sessions that they upload from conferences, a lot of presenters are from companies like google, adobe, intuit, aws, datadog you name it. vm ware is rather legacy thing and targeted to specific needs, docker/k8s resource virtualization is the future, this is what i see around
Another nice part of the AVGO story is the dividend growth rate which can beat just about any stock I've seen. Long term AVGO is must for any portfolio and should likely be overweight - aka 10% or more.
If you don’t understand the different business units Broadcom operates and runs your obviously going to look at the debt and run. They didn’t come this far taking that much debt without showing how well they can handle it already.
AVGO is not risk at subject of regulatory scrutiny. Who even is CISPE? I bet you Hock Tan is not even scared of them. Hock has strong relations with EU/US regulators,. He met with European Commissioner of Competition just 2 months AGO lmfao. I dont think any AVGO investor is scared of this group crying to EU regulators. They even cried about Microsoft and Azure licensing changes lol.
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So is there a link to the AI stocks
In the description there are three links to those vids mentioned!@@smilerdude4704
Hi there! This is the BEST Broadcom Software video, which isn't widely known or covered. Not surprising coming from "non-robots" like you guys :) :) Great coverage. The software business initially was meant to stabilize the cyclical nature of the company, not for hyper growth. Hock was smart enough to capitalize on the new trend when he bid to take over VMWare and it will pay off over time. It is giving the company a good runway for much longer now. It is run like a private equity and it's very diversified.
Thanks!
Thank YOU!
Bought a small position in 2022 and thought I had sooo much time to add more, hit the low with my buy but at the end it was just a starter position and never thought it would run that wild up and up. Wish I had a chance to add more at $500…
Stacy Rasgon who is amongst the best semiconductor analysts considers AVGO as his top pick along with NVDA and has maintained that for months
Lol let's welcome Stacy to the show, Nvidia and Broadcom have been our two top picks for YEARS!
Am I too late? Can I still make huge gains with avgo?
Great video! Don't forget about those juicy dividends!
Hock did say they are going to work hard to reduce the debt AND to get operating margins back up to ~65% (which is incredibly good). I believe they're going to get there by Q4 this year, perhaps Q1 next year, but they'll get there and sooner than expected. As to valuation: All you said is exactly right. It's not cheap, certainly not like 2-3 yrs ago, BUT, it doesn't feel like it's "insanely priced". If the AI hype will slow down, then this stock will drop, but I don't know that it will slow down in the next year or two. It feels the price is "frothy", but not crazy. Also, I wouldn't rule out Hock surprising to the upside later this year. I also wouldn't rule out another acquisition in 2025 or 2026.
thanks for the update nick and kasey!
Was able to buy AVGO when nobody wanted it and got it in the $430's. Long term hold, still has a runway to grow more.
I bought it down there too and sold it 50% hoping for another pullback. Never came 😢
Broadcom one of the best semiconductor companies in the world. Hock Tan is one of a kind CEO. Their disciplined M&A is state of the art. I think only Constellation Software and Danaher can compare.
is symantec meaningful in today's world of cybersecurity software ? i remember couple of years ago that their software agent installed on user machines was totally crap, so much overhead in resources e.g. cpu.
Great question, I guess we'd say probably not! At least not in the type of user-facing security products. But for enterprise? Maybe. Not exactly a high growth business.
Consistently good and informative. Appreciated.
What about NVDA now moving into this space? Do you see that as a risk?
lol Broadcom made a chip with 50% more memory and 25% more bandwidth than Nvidia’s latest chip. Their not even remotely close to being a risk lol
Thanks you!💯
I own AVGO but still I think that if Hock moves on too hard with WM Ware, customers will move to KVM and other virtualisation software or even more towards containers like Dockers that preserves compute resources much better. I still think their network solutions will go really well together with customer specific products like AI-chips.
i was thinking exactly the same thing - what is vm ware's future when you see that docker and kubernetes is taking the resource virtualization market by storm.
Hock clearly stated he does not care about SMB. This is his strategy. In terms of customer migration. He already said he has the top 2,000 entperise customers locked in for a couple years. He also stated extremely strong bookings inspite of price increases. We are Only 3 months on book with VMWare. Much more growth to go. If dockers were better than more people would use it. VMware is deeply entrenched in many organizations' infrastructure, with a strong market position in server virtualization and cloud partnerships, making it difficult for customers to switch.
@@Jai-qf8lw We’ll see, I will keep my shares, but the friends I have in IT-tech, most make new services for containers and microservices to make the product very scalable. Companies have a hard time to change fast, maybe you are right and it’s the right way forward. I hope so as a shareholder.
@@Jai-qf8lw docker and kubernetes are gaining more and more traction over time, just look at CNCF initiative youtube channel and video sessions that they upload from conferences, a lot of presenters are from companies like google, adobe, intuit, aws, datadog you name it. vm ware is rather legacy thing and targeted to specific needs, docker/k8s resource virtualization is the future, this is what i see around
Another nice part of the AVGO story is the dividend growth rate which can beat just about any stock I've seen. Long term AVGO is must for any portfolio and should likely be overweight - aka 10% or more.
I'm buying 2 more shares of AVGO on the next dip
This aged well. Avgo 1800.
AVGO is worth 10 times MRLV today. Do you think this gap will increase or decrease in 5 and/or 10 years?
??@chipstockinvestor1
0:50 the software you guys use to snip out the pauses, combined with your monotone delivery does make you guys sound like robots.
If I was making videos, I'd probably speak similarly though.😂
Yeah this isn't exactly a piece of cake... 🤣
I watch at 2x so it hardly matters to me
Broccoli 🥦 man says: BTFD and stop talking like me!
Not feeling this one and the debt is just too high. Not for me.
If you don’t understand the different business units Broadcom operates and runs your obviously going to look at the debt and run. They didn’t come this far taking that much debt without showing how well they can handle it already.
Overvalued, unfortunately. Would be nice to buy AVGO at a fair price.
If you take a look at AVGO financials and it’s P/E @ 49 it’s a STRONG BUY.
Hmm.... start the video saying they are not AI, just two normal people...🤔
That's exactly what an AI would say. Ahaha. Gotcha
Yep, you got us! Can't put anything past you!
AVGO is not risk at subject of regulatory scrutiny. Who even is CISPE? I bet you Hock Tan is not even scared of them. Hock has strong relations with EU/US regulators,. He met with European Commissioner of Competition just 2 months AGO lmfao. I dont think any AVGO investor is scared of this group crying to EU regulators. They even cried about Microsoft and Azure licensing changes lol.
HP -> Agilent -> Avago -> Broadcom