Post-AVGO earnings report debate: Bulls insist on explosive demand and buying on dips, while bears question the sustainability of profitability.

According to Odaily Odaily, Broadcom's (AVGO) latest earnings report has sparked significant disagreement among investors regarding the company's future performance. Many bullish investors believe the company's AI business, particularly in network infrastructure, is still experiencing rapid expansion, while some bearish investors worry that current profit margins are unsustainable and that there is a lack of new catalysts for the stock price in the short term. Many investors and analysts generally believe that Broadcom's dominance in AI infrastructure (especially network chips and custom chips) remains solid, and the short-term stock price adjustment is purely the market's "nitpicking". 1. Order visibility extends to 2028 for the first time ever: @aleabitoreddit cited management's statements during the earnings call, stating that demand for AI networking services is "virtually unmet," with a massive order book and order visibility extending to 2028. Based on this information, they believe Broadcom is benefiting from the ongoing expansion of its AI networking infrastructure development cycle, particularly in the AI ​​Networking field, and that the company's growth prospects for the coming years remain optimistic. 2. Supported by solid data, the logic of high-speed growth remains unchanged: In response to market concerns, @qinbafrank presented key data to refute them: Broadcom's projected total revenue for the third quarter is approximately $29.4 billion, significantly higher than the market's previous expectation of $28.61 billion. He believes that both the AI ​​semiconductor business and total revenue are experiencing extremely high growth, and the current adjustment is merely due to the revenue recognition pace being slower than some investors' extreme expectations; the core business logic remains completely intact. 3. Valuation pullback creates a "golden opportunity," prompting funds to leverage and buy on the buy the dips: In terms of trading strategy, all parties have shown a highly consistent "buy the dip" approach. Chuanmu analyzed that with the decline in share price, Broadcom's forward P/E ratio has fallen to around 20. If we consider the annualized fourth-quarter profit and factor in a 50% growth rate, its forward P/E ratio could even compress to around 10, making its valuation extremely attractive. He revealed that he had already buy the dips around 60 and used a double- long position. Investor @nft_hu also clearly stated that he welcomes this pullback and said, "I hope the pullback is even bigger so I can find the right opportunity to add to my position." Bearish camp: 60% profit margin may have peaked, lacking significant positive factors in the short term. 1. Questioning the moat of customized design, the exorbitant profits may be unsustainable: Industry analyst @jukan05 stated that Broadcom's current profit margin of approximately 60% is approaching that of industry leaders like Nvidia, but the company's design capabilities may not constitute an irreplaceable competitive barrier. He cited Google's TPU project as an example, pointing out that customized AI chips have proven successful, suggesting that large technology clients may gradually enhance their independent design capabilities, thereby weakening Broadcom's bargaining power. Based on this logic, he expressed doubt about the company's ability to maintain its extremely high profit margin in the long term and held a cautious attitude towards its current valuation. 2. Short-term catalyst vacuum, technical outlook faces downward pressure: In the short term