After AVGO's financial report, there is a debate between long and short positions: multiple parties insist on explosive demand and buying at low prices, while the short side questions the sustainability of profits Odaily Planet Daily News: AVGO's latest financial report shows significant differences among the investor community regarding the company's future trends. Many bulls believe that the company's AI business, especially the demand for network infrastructure, is still in a high-speed expansion stage, while some bearish views are concerned that the current profit margin level is difficult to maintain in the long run and believe that there is a lack of new stock price catalysts in the short term. Multiple investors and analysts generally believe that Broadcom's dominance in the field of AI infrastructure (especially network chips and custom chips) remains stable, and the short-term stock price adjustment is purely a "nitpick" in the market. 1. unprecedented order visibility until 2028: @ aleabitoreddit quoted management's statement during the earnings call that the demand for AI network business is "almost impossible to meet", and the scale of customer orders is huge, with order visibility extending until 2028. Based on this information, it believes that Broadcom is benefiting from the continuous expansion of its AI network infrastructure construction cycle, especially in the field of AI Networking, and the company's growth prospects in the coming years remain optimistic. 2. Hardcore data support, high-speed growth logic remains unchanged: In response to market concerns, Qinba Frank has provided core data to refute: Broadcom's expected total revenue for the third quarter is about $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 absolute high-speed growth, and the current adjustment is only an extreme expectation that the revenue recognition pace is slower than some funds. The main logic of the business has not been completely disrupted. 3. Valuation correction creates a "golden pit", and funds use leverage to buy at the bottom: In terms of operational strategy, multiple parties have shown a highly consistent "Buy the Dip" attitude. According to Chuanmu's analysis, with the decline in stock price, Broadcom's dynamic P/E ratio has fallen to around 20 times. If the fourth quarter profit is annualized and included in the 50% growth rate, the forward P/E ratio may even be compressed to around 10 times, making the valuation extremely attractive. He revealed that he had taken a dip around 60 and used double the long tool. Investor NFT Hu also made it clear that he welcomes this pullback and hopes that the pullback will be even bigger. He will seize the opportunity to continue to increase his holdings. The bearish camp: 60% profit margin may peak, lacking significant short-term benefits Doubting the customized design moat and the possibility of sustained huge profits: Industry analyst Jukan05 stated that Broadcom's current profit margin of about 60% is close to the level of industry leaders such as Nvidia, but the company's design capabilities may not necessarily constitute an irreplaceable competitive barrier. Taking the Google TPU project as an example, it is pointed out that customized AI chips have been proven to be successfully implemented, so in the future, large technology customers may gradually enhance their independent design capabilities, thereby weakening Broadcom's bargaining power. Under this logic, it expresses doubts about whether the company's ultra-high profit margin can be maintained in the long run and maintains a cautious attitude towards the current valuation. 2. Short term catalyst vacuum and technical pressure: In terms of short-term trend analysis, trader labubu_trader provided specific correction predictions from both the funding and technical perspectives. He clearly expressed a bearish attitude towards AVGO's short-term trend, believing that during the vacuum period after the market digests the financial report and before the next major positive (the next major catalyst) appears, the stock price lacks upward momentum and is likely to retrace all the way to the $385- $400 price range.