Key insights
- Broadcom (AVGO) reported record earnings with strong AI sales and guidance, yet experienced a significant double-digit drop. The author suggests this is due to invoice timing, with network and switch orders (MRVL, ANET) preceding memory chip shipments (MU). This highlights a potential disconnect between AI hype and actual hardware deployment, indicating a bearish signal for related stocks if invoice timing is indeed the primary driver of the sell-off.
i am literally staring at the market right now so confused because AVGO just printed a record 22.2B quarter with 10.8B in AI sales and guided 29.4B next quarter but the reaction is a massive double digit drop?? network and switch orders happen first so early silicon like MRVL and switches from ANET get the money way before memory names like MU see a single dime when the racks actually ship. stop blindly buying the generic AI hype and go look at the actual backlog comments on the MRVL and ANET calls right now or your going to get absolutely crushed by the invoice timing. am i completely misreading the supply signals here or what?? if anyone has the exact ANET backlog comments from the call this morning or a clean breakdown of how hyperscalers are timing these hardware invoices pls drop it below im begging u, what are we thinking for the play here