Bluechip Stocks Soar After NVIDIA Behind the Powerful Surge of Broadcom the Fierce Man Chen Fuyang

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Veteran Returns to the Scene to Revive US Stocks
The Ambiguous Relationship between Chen Fuyang and Trump: Once Utilized Each Other for Mutual Benefit
Broadcom and Nvidia
Is it Time to Buy?
Veteran Returns to the Scene to Revive US Stocks
The fever for artificial intelligence and semiconductor-related stocks continues. In the past few days, global IC design giant Broadcom Corporation (NASDAQ: AVGO) surged 15% at the opening last Thursday, hitting a new all-time high for the company.
Experts from all sides believe that the globally optimistic artificial intelligence market will propel this long-established semiconductor company (founded in 1961) to new heights. Broadcom’s current CEO, Malaysian Chinese Chen Fuyang (Hock E. Tan), has made brilliant achievements in the past, unapologetically acquiring several wafer semiconductor companies through aggressive mergers and acquisitions.
Starting in 2013, Avago, led by Chen Fuyang as CEO, began acquiring chip companies with larger market values than their own company. Avago financed $6.6 billion to acquire LSI, a storage chip factory in San Jose, Silicon Valley.
In 2015, Avago, led by Chen Fuyang, once again spent $37 billion to acquire Broadcom, a chip company in San Jose, California, which was the largest acquisition in the semiconductor industry at that time. Avago financed $9 billion for this deal.
The Ambiguous Relationship between Chen Fuyang and Trump: Once Utilized Each Other for Mutual Benefit
Chen Fuyang once responded to Trump’s slogan of “Make America Great Again” by moving Broadcom from Singapore to Silicon Valley, California in the United States. In 2017, Broadcom prepared to acquire Qualcomm, the world’s largest mobile chip manufacturer, for $70 per share. On March 12, 2018, the then President of the United States, Trump, blocked the acquisition on national security grounds. Trump stated, “According to reliable sources, Broadcom’s acquisition of Qualcomm could jeopardize U.S. national security.”
According to Robinhood’s 24-hour real-time information, when hitting a historical high last Thursday, 84% of retail investors bought, 16% held, and 0% sold.
Broadcom’s revenue for Q2 was $12.48 billion, soaring 43% to $8.73 billion compared to the same period last quarter, exceeding the estimated $12.04 billion by 4%. 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 chips are used to process big 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 the acquisition of VMware by the end of 2023. VMware is virtual machine software that runs on physical computers and is also a cloud data processing center.
On the other hand, Nvidia’s core products are computer graphics processors, chips, and multimedia software design, which integrate GPU graphics processing operations and network operations for metaverse and gaming chips (Graphic Cards by GeForce). Nvidia’s cloud acceleration platform (The NVIDIA Unified Platform) integrates three architectures of GPU, DPU, and CPU to enhance data processing performance and security. According to Nvidia’s official website, acceleration systems are the next stage of computer development. Just as all smartphones today are equipped with graphics and AI processors, every 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 published 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 a 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, ranking as the fifth largest semiconductor company globally, behind Samsung, TSMC, Nvidia, and Intel. Bullish predictions by many parties may push the market value of Broadcom to surpass the top three semiconductor companies.
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