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AI Data Center Boom Spurs Race to Find Power

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Shared good insights","listText":"//<a href=\"https://ttm.financial/U/4101184982262530\">@TedCheung</a>: Great article. Shared good insights","text":"//@TedCheung: Great article. Shared good insights","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/399062197830128","repostId":"2470801775","repostType":2,"repost":{"id":"2470801775","kind":"highlight","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1727527884,"share":"https://ttm.financial/m/news/2470801775?lang=en_US&edition=fundamental","pubTime":"2024-09-28 20:51","market":"other","language":"en","title":"AI Data Center Boom Spurs Race to Find Power","url":"https://stock-news.laohu8.com/highlight/detail?id=2470801775","media":"Dow Jones","summary":"By Jennifer Hiller | Photographs by Maddie McGarvey for WSJ. Tech companies scouring the country for electricity to power artificial intelligence are increasingly finding there is a waiting list.In many places the nation's high-voltage electric wires are running out of room, their connection points locked up by data centers for AI, new factories or charging infrastructure for electric vehicles.A mad dash to lock up available power has ensued.The tech industry is pinballing from one market to the next looking for places with the capacity to connect campuses that would consume up to a gigawatt of power -- about as much as San Francisco uses. Some requests are as much as four to five times as large as that.In Santa Clara, Calif., one of the tech industry's hometown utilities, Silicon Valley Power, has stopped taking requests for electric service for additional data centers. SVP said it faces transmission and power generation constraints that it can't solve until the early 2030s.AI arrives","content":"<html><head></head><body><p>Tech companies scouring the country for electricity to power artificial intelligence are increasingly finding there is a waiting list.</p><p>In many places the nation&#39;s high-voltage electric wires are running out of room, their connection points locked up by data centers for AI, new factories or charging infrastructure for electric vehicles.</p><p>A mad dash to lock up available power has ensued.</p><p>The tech industry is pinballing from one market to the next looking for places with the capacity to connect campuses that would consume up to a gigawatt of power -- about as much as San Francisco uses. Some requests are as much as four to five times as large as that.</p><p>But wires are getting so crowded that some prospective data center customers -- which request far more power than other users -- are being told they may have to wait until the next decade to get the power they are seeking. Others are receiving less power than they expected.</p><p>In Salt Lake City, there is a moratorium on larger power requests. The data center industry considers it closed for business.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/5b52b756643d19e36c770abb0766815e\" alt=\"2023 年数据中心占总电力消耗的份额\" title=\"2023 年数据中心占总电力消耗的份额\" tg-width=\"1400\" tg-height=\"856\"/><span>2023 年数据中心占总电力消耗的份额</span></p><p>In Santa Clara, Calif., one of the tech industry&#39;s hometown utilities, Silicon Valley Power, has stopped taking requests for electric service for additional data centers. SVP said it faces transmission and power generation constraints that it can&#39;t solve until the early 2030s.</p><p>In Virginia -- the world&#39;s largest data center market -- Dominion Energy said it is temporarily rationing power to some new data centers until new transmission lines can be finished, even as the utility adds around 15 data centers a year.</p><p>The growing pains are also sparking fights over how to pay for potentially billions of dollars in upgrades to the grid.</p><p>In central Ohio, the biggest power line in the Midwest will run out of transmission capacity in 2028. American Electric Power, which owns the line, has proposed a new, higher electricity rate for data centers and cryptocurrency miners that would lock them in as customers for a decade. The companies are balking.</p><p>&#34;The amount of infrastructure required to deliver on that is immense,&#34; said Marc Reitter, president and chief operating officer of AEP Ohio. &#34;We need certainty.&#34;</p><p>Thirst for power</p><p>AI is a fast-growing source of spending by tech companies that say they are on the cusp of the biggest boom since the internet, with implications for national security and the economy. But a search on a generative AI platform such as ChatGPT can use at least 10 times the amount of energy as a google search. Data centers could use as much as 9% of U.S. electricity by 2030, according to the Electric Power Research Institute.</p><p>AI arrives in tandem with other new strains on the grid: manufacturing plants spurred by tax policies under the Inflation Reduction Act, and a push in some states for more electric power for transportation, heat and heavy industry. It is the first meaningful demand growth this century for the electricity industry.</p><p>For example, Phoenix has become a key data center market and is in the midst of a manufacturing boom. Utility Arizona Public Service proposes building 800 miles of new transmission lines or upgrades in the next decade because its existing transmission capacity will be &#34;consumed&#34; before 2030.</p><p>Transmission constraints are the first pinch point that many utilities are flagging as those kinds of upgrades can take several years. But there are calls for added power generation. Goldman Sachs estimates around 47 gigawatts of new power generation capacity will be required to support U.S. data center power demand growth through 2030.</p><p>Analysts at Fitch Ratings say utilities also risk overestimating the demand from data centers and overbuilding, given the inconsistent ways that the industry tallies future demand.</p><p>Power for three New Yorks</p><p>In the heart of Ohio, American Electric Power&#39;s 765-kilovolt bulk transmission system provides a backbone of reliable power that has vacuumed in new data centers. The amount of electricity used in the region will roughly double by 2028, which AEP can accommodate.</p><p>After 2028, AEP says it has three New York Cities worth of data centers asking to connect to the grid, but no way to discern which are serious customers or just looky-loos shopping multiple markets. It halted new service requests from data centers more than a year ago.</p><p>AEP&#39;s Reitter said long-term contracts and higher rates would protect customers such as homeowners and other businesses in case the tech companies leave later.</p><p>Companies of all kinds are fighting the idea.</p><p>The Ohio Manufacturers&#39; Association wants a study on transmission constraints and opposes the AEP request because it would avoid the usual rate-making process, including studies that delve into the cost to provide new service.</p><p>Google argued in regulatory filings that it has invested $6.7 billion in data centers across central Ohio and wants state regulators to investigate the best ways to manage growth, handling any changes to rates in a formal rate case. The Data Center Coalition trade group, of which Google and other tech companies are members, suggested an eight-year minimum commitment, short of AEP&#39;s decadelong request.</p><p>The Ohio Consumers&#39; Counsel, meanwhile, has argued that residential customers &#34;should not be forced to subsidize utility investment to accommodate data centers operated by multibillion and trillion-dollar companies.&#34;</p><p>Akshat Kasliwal at PA Consulting Group, who advises tech and power companies, said AEP&#39;s conundrum is that it needs to invest in transmission to add more data centers. But if it charges higher rates to cover that cost, data centers might go elsewhere after the money has been spent, leaving other customers holding the bag.</p><p>Take-or-pay contracts</p><p>Other utilities are also looking at ways to shield customers from costly grid investments that data centers later decide they don&#39;t need.</p><p>Xcel Energy has a peak demand of around 22 gigawatts across its multistate system but around 6.7 gigawatts of new data center requests, largely in Colorado and Minnesota. Executives say the system will need transmission upgrades and new power generation, as well as a way to be fair to all customers.</p><p>Chief Financial Officer Brian Van Abel said in an August earnings call the company would consider things such as &#34;take-or-pay&#34; contracts that require data centers to pay for a minimum amount of power no matter how much is used.</p><p>Arizona Public Service tests a project&#39;s seriousness by telling new large customers it puts minimum thresholds on bills to cover the cost of needed investments.</p><p>&#34;Some customers may shy away from those commitments,&#34; said Ted Geisler, president of APS, &#34;and that&#39;s a good indicator to us that maybe they&#39;re not as committed yet as others.&#34;</p><p>Andy Cvengros, managing director with real-estate services firm JLL, said utilities are getting wise in the face of speculative requests for power from everyone, whether from farmers with land along a transmission line or private-equity investors. Requests don&#39;t always have solid projects with tenants behind them.</p><p>&#34;We have companies that didn&#39;t exist 24 months ago now asking for 100 megawatts of power,&#34; Cvengros said. &#34;What&#39;s the real demand?&#34;</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AI Data Center Boom Spurs Race to Find Power</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAI Data Center Boom Spurs Race to Find Power\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-09-28 20:51</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Tech companies scouring the country for electricity to power artificial intelligence are increasingly finding there is a waiting list.</p><p>In many places the nation&#39;s high-voltage electric wires are running out of room, their connection points locked up by data centers for AI, new factories or charging infrastructure for electric vehicles.</p><p>A mad dash to lock up available power has ensued.</p><p>The tech industry is pinballing from one market to the next looking for places with the capacity to connect campuses that would consume up to a gigawatt of power -- about as much as San Francisco uses. Some requests are as much as four to five times as large as that.</p><p>But wires are getting so crowded that some prospective data center customers -- which request far more power than other users -- are being told they may have to wait until the next decade to get the power they are seeking. Others are receiving less power than they expected.</p><p>In Salt Lake City, there is a moratorium on larger power requests. The data center industry considers it closed for business.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/5b52b756643d19e36c770abb0766815e\" alt=\"2023 年数据中心占总电力消耗的份额\" title=\"2023 年数据中心占总电力消耗的份额\" tg-width=\"1400\" tg-height=\"856\"/><span>2023 年数据中心占总电力消耗的份额</span></p><p>In Santa Clara, Calif., one of the tech industry&#39;s hometown utilities, Silicon Valley Power, has stopped taking requests for electric service for additional data centers. SVP said it faces transmission and power generation constraints that it can&#39;t solve until the early 2030s.</p><p>In Virginia -- the world&#39;s largest data center market -- Dominion Energy said it is temporarily rationing power to some new data centers until new transmission lines can be finished, even as the utility adds around 15 data centers a year.</p><p>The growing pains are also sparking fights over how to pay for potentially billions of dollars in upgrades to the grid.</p><p>In central Ohio, the biggest power line in the Midwest will run out of transmission capacity in 2028. American Electric Power, which owns the line, has proposed a new, higher electricity rate for data centers and cryptocurrency miners that would lock them in as customers for a decade. The companies are balking.</p><p>&#34;The amount of infrastructure required to deliver on that is immense,&#34; said Marc Reitter, president and chief operating officer of AEP Ohio. &#34;We need certainty.&#34;</p><p>Thirst for power</p><p>AI is a fast-growing source of spending by tech companies that say they are on the cusp of the biggest boom since the internet, with implications for national security and the economy. But a search on a generative AI platform such as ChatGPT can use at least 10 times the amount of energy as a google search. Data centers could use as much as 9% of U.S. electricity by 2030, according to the Electric Power Research Institute.</p><p>AI arrives in tandem with other new strains on the grid: manufacturing plants spurred by tax policies under the Inflation Reduction Act, and a push in some states for more electric power for transportation, heat and heavy industry. It is the first meaningful demand growth this century for the electricity industry.</p><p>For example, Phoenix has become a key data center market and is in the midst of a manufacturing boom. Utility Arizona Public Service proposes building 800 miles of new transmission lines or upgrades in the next decade because its existing transmission capacity will be &#34;consumed&#34; before 2030.</p><p>Transmission constraints are the first pinch point that many utilities are flagging as those kinds of upgrades can take several years. But there are calls for added power generation. Goldman Sachs estimates around 47 gigawatts of new power generation capacity will be required to support U.S. data center power demand growth through 2030.</p><p>Analysts at Fitch Ratings say utilities also risk overestimating the demand from data centers and overbuilding, given the inconsistent ways that the industry tallies future demand.</p><p>Power for three New Yorks</p><p>In the heart of Ohio, American Electric Power&#39;s 765-kilovolt bulk transmission system provides a backbone of reliable power that has vacuumed in new data centers. The amount of electricity used in the region will roughly double by 2028, which AEP can accommodate.</p><p>After 2028, AEP says it has three New York Cities worth of data centers asking to connect to the grid, but no way to discern which are serious customers or just looky-loos shopping multiple markets. It halted new service requests from data centers more than a year ago.</p><p>AEP&#39;s Reitter said long-term contracts and higher rates would protect customers such as homeowners and other businesses in case the tech companies leave later.</p><p>Companies of all kinds are fighting the idea.</p><p>The Ohio Manufacturers&#39; Association wants a study on transmission constraints and opposes the AEP request because it would avoid the usual rate-making process, including studies that delve into the cost to provide new service.</p><p>Google argued in regulatory filings that it has invested $6.7 billion in data centers across central Ohio and wants state regulators to investigate the best ways to manage growth, handling any changes to rates in a formal rate case. The Data Center Coalition trade group, of which Google and other tech companies are members, suggested an eight-year minimum commitment, short of AEP&#39;s decadelong request.</p><p>The Ohio Consumers&#39; Counsel, meanwhile, has argued that residential customers &#34;should not be forced to subsidize utility investment to accommodate data centers operated by multibillion and trillion-dollar companies.&#34;</p><p>Akshat Kasliwal at PA Consulting Group, who advises tech and power companies, said AEP&#39;s conundrum is that it needs to invest in transmission to add more data centers. But if it charges higher rates to cover that cost, data centers might go elsewhere after the money has been spent, leaving other customers holding the bag.</p><p>Take-or-pay contracts</p><p>Other utilities are also looking at ways to shield customers from costly grid investments that data centers later decide they don&#39;t need.</p><p>Xcel Energy has a peak demand of around 22 gigawatts across its multistate system but around 6.7 gigawatts of new data center requests, largely in Colorado and Minnesota. Executives say the system will need transmission upgrades and new power generation, as well as a way to be fair to all customers.</p><p>Chief Financial Officer Brian Van Abel said in an August earnings call the company would consider things such as &#34;take-or-pay&#34; contracts that require data centers to pay for a minimum amount of power no matter how much is used.</p><p>Arizona Public Service tests a project&#39;s seriousness by telling new large customers it puts minimum thresholds on bills to cover the cost of needed investments.</p><p>&#34;Some customers may shy away from those commitments,&#34; said Ted Geisler, president of APS, &#34;and that&#39;s a good indicator to us that maybe they&#39;re not as committed yet as others.&#34;</p><p>Andy Cvengros, managing director with real-estate services firm JLL, said utilities are getting wise in the face of speculative requests for power from everyone, whether from farmers with land along a transmission line or private-equity investors. Requests don&#39;t always have solid projects with tenants behind them.</p><p>&#34;We have companies that didn&#39;t exist 24 months ago now asking for 100 megawatts of power,&#34; Cvengros said. &#34;What&#39;s the real demand?&#34;</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4234":"特殊用途房地产信托","BK4084":"特种房地产投资信托",".IXIC":"NASDAQ Composite",".DJI":"道琼斯","BK6051":"信息科技咨询与其它服务",".SPX":"S&P 500 Index"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2470801775","content_text":"Tech companies scouring the country for electricity to power artificial intelligence are increasingly finding there is a waiting list.In many places the nation's high-voltage electric wires are running out of room, their connection points locked up by data centers for AI, new factories or charging infrastructure for electric vehicles.A mad dash to lock up available power has ensued.The tech industry is pinballing from one market to the next looking for places with the capacity to connect campuses that would consume up to a gigawatt of power -- about as much as San Francisco uses. Some requests are as much as four to five times as large as that.But wires are getting so crowded that some prospective data center customers -- which request far more power than other users -- are being told they may have to wait until the next decade to get the power they are seeking. Others are receiving less power than they expected.In Salt Lake City, there is a moratorium on larger power requests. The data center industry considers it closed for business.2023 年数据中心占总电力消耗的份额In Santa Clara, Calif., one of the tech industry's hometown utilities, Silicon Valley Power, has stopped taking requests for electric service for additional data centers. SVP said it faces transmission and power generation constraints that it can't solve until the early 2030s.In Virginia -- the world's largest data center market -- Dominion Energy said it is temporarily rationing power to some new data centers until new transmission lines can be finished, even as the utility adds around 15 data centers a year.The growing pains are also sparking fights over how to pay for potentially billions of dollars in upgrades to the grid.In central Ohio, the biggest power line in the Midwest will run out of transmission capacity in 2028. American Electric Power, which owns the line, has proposed a new, higher electricity rate for data centers and cryptocurrency miners that would lock them in as customers for a decade. The companies are balking.\"The amount of infrastructure required to deliver on that is immense,\" said Marc Reitter, president and chief operating officer of AEP Ohio. \"We need certainty.\"Thirst for powerAI is a fast-growing source of spending by tech companies that say they are on the cusp of the biggest boom since the internet, with implications for national security and the economy. But a search on a generative AI platform such as ChatGPT can use at least 10 times the amount of energy as a google search. Data centers could use as much as 9% of U.S. electricity by 2030, according to the Electric Power Research Institute.AI arrives in tandem with other new strains on the grid: manufacturing plants spurred by tax policies under the Inflation Reduction Act, and a push in some states for more electric power for transportation, heat and heavy industry. It is the first meaningful demand growth this century for the electricity industry.For example, Phoenix has become a key data center market and is in the midst of a manufacturing boom. Utility Arizona Public Service proposes building 800 miles of new transmission lines or upgrades in the next decade because its existing transmission capacity will be \"consumed\" before 2030.Transmission constraints are the first pinch point that many utilities are flagging as those kinds of upgrades can take several years. But there are calls for added power generation. Goldman Sachs estimates around 47 gigawatts of new power generation capacity will be required to support U.S. data center power demand growth through 2030.Analysts at Fitch Ratings say utilities also risk overestimating the demand from data centers and overbuilding, given the inconsistent ways that the industry tallies future demand.Power for three New YorksIn the heart of Ohio, American Electric Power's 765-kilovolt bulk transmission system provides a backbone of reliable power that has vacuumed in new data centers. The amount of electricity used in the region will roughly double by 2028, which AEP can accommodate.After 2028, AEP says it has three New York Cities worth of data centers asking to connect to the grid, but no way to discern which are serious customers or just looky-loos shopping multiple markets. It halted new service requests from data centers more than a year ago.AEP's Reitter said long-term contracts and higher rates would protect customers such as homeowners and other businesses in case the tech companies leave later.Companies of all kinds are fighting the idea.The Ohio Manufacturers' Association wants a study on transmission constraints and opposes the AEP request because it would avoid the usual rate-making process, including studies that delve into the cost to provide new service.Google argued in regulatory filings that it has invested $6.7 billion in data centers across central Ohio and wants state regulators to investigate the best ways to manage growth, handling any changes to rates in a formal rate case. The Data Center Coalition trade group, of which Google and other tech companies are members, suggested an eight-year minimum commitment, short of AEP's decadelong request.The Ohio Consumers' Counsel, meanwhile, has argued that residential customers \"should not be forced to subsidize utility investment to accommodate data centers operated by multibillion and trillion-dollar companies.\"Akshat Kasliwal at PA Consulting Group, who advises tech and power companies, said AEP's conundrum is that it needs to invest in transmission to add more data centers. But if it charges higher rates to cover that cost, data centers might go elsewhere after the money has been spent, leaving other customers holding the bag.Take-or-pay contractsOther utilities are also looking at ways to shield customers from costly grid investments that data centers later decide they don't need.Xcel Energy has a peak demand of around 22 gigawatts across its multistate system but around 6.7 gigawatts of new data center requests, largely in Colorado and Minnesota. Executives say the system will need transmission upgrades and new power generation, as well as a way to be fair to all customers.Chief Financial Officer Brian Van Abel said in an August earnings call the company would consider things such as \"take-or-pay\" contracts that require data centers to pay for a minimum amount of power no matter how much is used.Arizona Public Service tests a project's seriousness by telling new large customers it puts minimum thresholds on bills to cover the cost of needed investments.\"Some customers may shy away from those commitments,\" said Ted Geisler, president of APS, \"and that's a good indicator to us that maybe they're not as committed yet as others.\"Andy Cvengros, managing director with real-estate services firm JLL, said utilities are getting wise in the face of speculative requests for power from everyone, whether from farmers with land along a transmission line or private-equity investors. Requests don't always have solid projects with tenants behind them.\"We have companies that didn't exist 24 months ago now asking for 100 megawatts of power,\" Cvengros said. \"What's the real demand?\"","news_type":1,"symbols_score_info":{".SPX":1.1,".IXIC":1.1,".DJI":1.1}},"isVote":1,"tweetType":1,"viewCount":1735,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":399061946777760,"gmtCreate":1738452536949,"gmtModify":1738452538896,"author":{"id":"4201061858351912","authorId":"4201061858351912","name":"Widraw","avatar":"https://community-static.tradeup.com/news/dfead61c8f4e8ef924f983b493e29683","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4201061858351912","idStr":"4201061858351912"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/399061946777760","repostId":"9000980585","repostType":1,"repost":{"id":9000980585,"gmtCreate":1639726096304,"gmtModify":1733298571320,"author":{"id":"3527667618000160","authorId":"3527667618000160","name":"CaptainTiger","avatar":"https://static.tigerbbs.com/5d0e54b757b231beb8b11fd49de85317","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3527667618000160","idStr":"3527667618000160"},"themes":[],"title":"What is Editor's Pick & Criteria for receiving it","htmlText":"Hi&nbsp;Tigers!This is Captain Tiger, your most helpful friend in the Tiger Community!&nbsp;<a href=\"https://ttm.financial/TW/9000981648\" target=\"_blank\">Captain Tiger: Your most helpful friend in the Tiger Community</a>You may have seen many articles with a \"PICK\" sign in the front, which means it is an Editor's Pick. In simple words, the post has been viewed by the Tiger Community Team and has been recommended due to its high-quality content and analysis.Then you may wonder: how do Tigers benefit from getting an editor's pick?Well, before answering the question, I must introduce you to one thing: Tiger Coins, the virtual coins that you can use in the Tiger Community to redeem gifts such as souvenir Tigers, commission-free trading cards, stock vouchers, etc.. (Here&nbsp;the&nbsp;link&nbsp;","listText":"Hi&nbsp;Tigers!This is Captain Tiger, your most helpful friend in the Tiger Community!&nbsp;<a href=\"https://ttm.financial/TW/9000981648\" target=\"_blank\">Captain Tiger: Your most helpful friend in the Tiger Community</a>You may have seen many articles with a \"PICK\" sign in the front, which means it is an Editor's Pick. In simple words, the post has been viewed by the Tiger Community Team and has been recommended due to its high-quality content and analysis.Then you may wonder: how do Tigers benefit from getting an editor's pick?Well, before answering the question, I must introduce you to one thing: Tiger Coins, the virtual coins that you can use in the Tiger Community to redeem gifts such as souvenir Tigers, commission-free trading cards, stock vouchers, etc.. (Here&nbsp;the&nbsp;link&nbsp;","text":"Hi Tigers!This is Captain Tiger, your most helpful friend in the Tiger Community! Captain Tiger: Your most helpful friend in the Tiger CommunityYou may have seen many articles with a \"PICK\" sign in the front, which means it is an Editor's Pick. In simple words, the post has been viewed by the Tiger Community Team and has been recommended due to its high-quality content and analysis.Then you may wonder: how do Tigers benefit from getting an editor's pick?Well, before answering the question, I must introduce you to one thing: Tiger Coins, the virtual coins that you can use in the Tiger Community to redeem gifts such as souvenir Tigers, commission-free trading cards, stock vouchers, etc.. (Here the link","images":[{"img":"https://static.tigerbbs.com/f05da04faccffb281e410c2230d54cdd"},{"img":"https://static.tigerbbs.com/c6bcca8831fd6ca15324729d2322a267"},{"img":"https://static.tigerbbs.com/748be6f51f65a949086ea073dbeb6907"}],"top":1,"highlighted":1,"essential":2,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9000980585","isVote":1,"tweetType":1,"viewCount":0,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":8,"langContent":"EN","totalScore":0},"isVote":1,"tweetType":1,"viewCount":1815,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":399061329817688,"gmtCreate":1738452493021,"gmtModify":1738452496929,"author":{"id":"4201061858351912","authorId":"4201061858351912","name":"Widraw","avatar":"https://community-static.tradeup.com/news/dfead61c8f4e8ef924f983b493e29683","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4201061858351912","idStr":"4201061858351912"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/399061329817688","repostId":"1120625009","repostType":2,"repost":{"id":"1120625009","kind":"news","pubTimestamp":1738376556,"share":"https://ttm.financial/m/news/1120625009?lang=en_US&edition=fundamental","pubTime":"2025-02-01 10:22","market":"us","language":"en","title":"Nvidia: Why I Am Doubling Down On The DeepSeek Selloff","url":"https://stock-news.laohu8.com/highlight/detail?id=1120625009","media":"Seeking Alpha","summary":"Nvidia Corporation's stock dropped 17% due to DeepSeek's AI model, but this is a buying opportunity given Nvidia's strong sales and AI GPU demand.DeepSeek's cheaper AI model caused market fear, but Nv","content":"<html><head></head><body><ul style=\"\"><li><p>Nvidia Corporation&#39;s stock dropped 17% due to DeepSeek&#39;s AI model, but this is a buying opportunity given Nvidia&#39;s strong sales and AI GPU demand.</p></li><li><p>DeepSeek&#39;s cheaper AI model caused market fear, but Nvidia&#39;s advanced chips remain essential for U.S. companies, ensuring continued high demand.</p></li><li><p>Nvidia&#39;s sales surged 430% last year, and despite DeepSeek, its data center business and AI GPU demand will drive future growth.</p></li><li><p>Nvidia&#39;s profit multiple contraction is an overreaction; NVDA investors should capitalize on the current low price, as Nvidia remains a market leader.</p></li></ul><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/966eb37394e6456ae039ecc808cbe3c0\" alt=\"Nvidia Corporation building in Taipei, Taiwan.\" title=\"Nvidia Corporation building in Taipei, Taiwan.\" tg-width=\"750\" tg-height=\"500\"/><span>Nvidia Corporation building in Taipei, Taiwan.</span></p><p></p><p>The AI and semiconductor market has been thrown into turmoil this week by revelations made by Chinese artificial intelligence startup DeepSeek (DEEPSEEK) that is utilizing open-source technology to run large-language models.</p><p>The stock price of <strong>Nvidia Corporation (NVDA) </strong>tumbled 17% in response on Monday and dragged the entire semiconductor market down with it. I think that the market is reacting a bit hysterically here, and I consider the price correction for Nvidia to be a golden buying opportunity.</p><p>In my last piece on Nvidia, I made the case for the AI GPU king. I pointed to the company’s strong sales trajectory, growing demand for semiconductors that can handle AI workloads, as well as the opportunity for AI GPU cluster up-scaling.</p><p>The last reason, cluster up-scaling, relates to the growing numbers of GPUs that are (and will be) included by hyperscalers in clusters to train large-language models.</p><p>In my view, the DeepSeek controversy is an opportunity to use surging market fear to your advantage, and I think that the fundamental investment thesis for Nvidia is still pretty much intact.</p><h2 id=\"id_3768535198\">DeepSeek-Driven AI Crash Creates Opportunity</h2><p>Nvidia continues to see skyrocketing demand for its GPUs that are needed to train and run large-language models, or LLMs. These AI GPUs underpin chatbots like the ones developed by OpenAI, <strong>Meta Platforms Inc. (META),</strong> or Elon Musk’s X.</p><p>DeepSeek is an artificial intelligence startup in China that utilizes open-source technology and develops similar chatbots. The Chinese company made waves this week as the company revealed its chatbot, which apparently has been built at a cost of $6 million based on the open source DeepSeek-V3 model.</p><p>While the price tag has not yet been independently verified, as I understand it, the mere appearance of a potentially cheaper path to train large-language models has sent shockwaves through the markets earlier this week. A case in point is Nvidia, which lost $600 billion in market valuation just on the back of the DeepSeek news.</p><p>The fear here is that the AI market could now transition to a new kind of low-cost model that forces companies to downscale their AI investments. This would obviously be a setback for companies that have made aggressive wagers on GPUs, such as Nvidia.</p><p>According to the news, DeepSeek’s chatbot rivals OpenAI&#39;s ChatGPT or Meta&#39;s Llama 3.1 in terms of performance, with a main focus on possible cost savings. Tom’s Hardware illustrated that:</p><blockquote><p>DeepSeek trained its DeepSeek-V3 Mixture-of-Experts (MoE) language model with 671 billion parameters using a cluster containing 2,048 Nvidia H800 GPUs in just two months, which means 2.8 million GPU hours, according to its paper. For comparison, it took Meta 11 times more compute power (30.8 million GPU hours) to train its Llama 3 with 405 billion parameters using a cluster containing 16,384 H100 GPUs over the course of 54 days.</p></blockquote><p>The intrigue about DeepSeek’s R1 model is that it lowers computational costs related to each prompt. This means it could, possibly, offer a way for companies to train AI models by shortening training times as well as reducing the need for less compute power.</p><p>With that said, it is unlikely that U.S. companies will want to base their AI infrastructure on Chinese technology, and they are still going to need Nvidia’s advanced chips to power their data centers.</p><p>I think the most probable outcome is that the race for supremacy in the AI realm is accelerating and possibly opening up a door for lower-cost AI to develop. What I don’t think is going to change is the big upswing in GPU volumes that will be needed to run either U.S. or Chinese AI models.</p><h2 id=\"id_2394881318\">DeepSeek Is Likely Not Going To Have A Substantial Impact On Nvidia’s Sales</h2><p>Nvidia experienced an unprecedented sales surge in the first nine months of last year: The chip company produced $80 billion in sales in the first three quarters of its 2025 financial year.</p><p>Sales in the first nine months of the year were up more than 430% over Nvidia’s entire sales in 2023, and the chip company still has another quarter to go.</p><p>Most likely, Nvidia has ended the 2025 financial year with a total sales volume somewhere in the $120 billion ballpark and more growth awaits the AI GPU king this year (Nvidia’s 2026 financial year).</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/082c4dac8a9847406601463c1fd6362c\" alt=\"Revenue\" title=\"Revenue\" tg-width=\"640\" tg-height=\"473\"/><span>Revenue</span></p><p></p><p>In the short-and medium-term, DeepSeek is likely not have a substantial impact on Nvidia’s data center business and sales upsurge as companies continue to spend a boatload of money to fix their immediate need for more AI compute.</p><p>Nvidia’s advanced chips engineered for AI workloads are therefore going to remain in high demand, which in turn should equate to considerable volume growth and higher operating income. Nvidia’s operating income has already skyrocketed with more growth anticipated thanks to the launch of Nvidia’s latest GPU, the Blackwell.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/3373471a56a5ddc638309fd0fc8ea59a\" alt=\"Operating Income\" title=\"Operating Income\" tg-width=\"640\" tg-height=\"249\"/><span>Operating Income</span></p><p></p><h2 id=\"id_3936383752\">Nvidia’s P/E Correction Is A Buying Opportunity</h2><p>The DeepSeek controversy has sent shockwaves through the AI and semiconductor markets. This led to big declines in the stock prices of pretty much every artificial intelligence company, including Nvidia, Advanced Micro Devices (AMD), Micron Technology (MU), Broadcom (AVGO) and ASML Holding N.V. (ASML).</p><p>In the short term, semi valuations might remain under pressure as investors try to assess the impact of DeepSeek’s AI model on GPU demand, but Nvidia has a solidly reliable history of innovation. Nvidia, for example, is developing a cloud-native development platform, known as Enterprise AI, which helps companies deploy generative AI applications at scale.</p><p>Nvidia is selling for a leading profit multiple of 28x, whereas Advanced Micro Devices’ multiple is down to 23x. Nvidia is anticipated to produce an impressive 51% jump in profits this year, and the GPU company is probably still going to sell a lot more advanced chips in the future than it is now. The good news is that investors can now grab Nvidia out of the bargain bin, as did I at $117, at a hugely improved risk/reward trade-off.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/ad154bb1ece865633775297dff9ad222\" alt=\"Earnings Estimate\" title=\"Earnings Estimate\" tg-width=\"640\" tg-height=\"198\"/><span>Earnings Estimate</span></p><p></p><h2 id=\"id_4059862826\">Why The Investment Thesis Might Be More Risky Now</h2><p>DeepSeek does not pose a fundamental challenge to either Nvidia’s business model, or its strong position in the data center market, in my view. Nvidia is poised to continue to grow, mainly in data center GPUs, which are needed to support the broad application of AI products.</p><p>With that said, the pace of technological innovation is poised to kick into high gear now and China has demonstrated that it can be competitive in the market for AI models.</p><p>Though it may get more challenging for people to keep up with new developments in the AI market, to read an existential challenge into DeepSeek is probably exaggerated.</p><p>On the flip side, should China prove that it can provide competitive AI products without the need for billions of dollars of investments in the most advanced chips, then Nvidia might see growing pressure on its market share.</p><h2 id=\"id_4046736851\">My Conclusion</h2><p>Nvidia is growing its data center business via the latest Blackwell GPU, a leading, next-gen AI-oriented semiconductor chip that is meant to accelerate the handling of AI workloads.</p><p>DeepSeek might be a promising innovation, but the need for AI GPUs is not going to go away and should not in any meaningful way curtail Nvidia’s market potential in this burgeoning segment. Nvidia owns more than 90% of the GPU market, which firmly establishes the company as the ultimate leader in the data center industry.</p><p>Nvidia’s profit multiple has contracted by a good 20% compared to last week, thanks to DeepSeek rattling U.S. investors about the potential emergence of lower-cost AI models. I think that the drastic decline in Nvidia’s profit multiple indicates an elevated level of fear that investors should take advantage of. Once investors are more level-headed, I think there is a good chance that investors will drive a re-rating of Nvidia’s stock.</p><p>Chances are that the DeepSeek controversy is not going to have an overly dramatic impact on any of the U.S.’s leading chip companies, including Nvidia. The company’s sales potential should not be affected either as demand for GPUs, with or without DeepSeek, is only going to increase moving forward.</p><p>Nvidia is at the top of its industry for a reason, as it has proven itself as an AI pioneer itself. Thus, I think Nvidia deserves the benefit of the doubt and I recommend doubling down on the crash.</p></body></html>","source":"lsy1728464409321","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Nvidia: Why I Am Doubling Down On The DeepSeek Selloff</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNvidia: Why I Am Doubling Down On The DeepSeek Selloff\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-02-01 10:22 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4753847-nvidia-why-i-am-doubling-down-on-the-deepseek-selloff><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Nvidia Corporation's stock dropped 17% due to DeepSeek's AI model, but this is a buying opportunity given Nvidia's strong sales and AI GPU demand.DeepSeek's cheaper AI model caused market fear, but ...</p>\n\n<a href=\"https://seekingalpha.com/article/4753847-nvidia-why-i-am-doubling-down-on-the-deepseek-selloff\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NVDA":"英伟达"},"source_url":"https://seekingalpha.com/article/4753847-nvidia-why-i-am-doubling-down-on-the-deepseek-selloff","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1120625009","content_text":"Nvidia Corporation's stock dropped 17% due to DeepSeek's AI model, but this is a buying opportunity given Nvidia's strong sales and AI GPU demand.DeepSeek's cheaper AI model caused market fear, but Nvidia's advanced chips remain essential for U.S. companies, ensuring continued high demand.Nvidia's sales surged 430% last year, and despite DeepSeek, its data center business and AI GPU demand will drive future growth.Nvidia's profit multiple contraction is an overreaction; NVDA investors should capitalize on the current low price, as Nvidia remains a market leader.Nvidia Corporation building in Taipei, Taiwan.The AI and semiconductor market has been thrown into turmoil this week by revelations made by Chinese artificial intelligence startup DeepSeek (DEEPSEEK) that is utilizing open-source technology to run large-language models.The stock price of Nvidia Corporation (NVDA) tumbled 17% in response on Monday and dragged the entire semiconductor market down with it. I think that the market is reacting a bit hysterically here, and I consider the price correction for Nvidia to be a golden buying opportunity.In my last piece on Nvidia, I made the case for the AI GPU king. I pointed to the company’s strong sales trajectory, growing demand for semiconductors that can handle AI workloads, as well as the opportunity for AI GPU cluster up-scaling.The last reason, cluster up-scaling, relates to the growing numbers of GPUs that are (and will be) included by hyperscalers in clusters to train large-language models.In my view, the DeepSeek controversy is an opportunity to use surging market fear to your advantage, and I think that the fundamental investment thesis for Nvidia is still pretty much intact.DeepSeek-Driven AI Crash Creates OpportunityNvidia continues to see skyrocketing demand for its GPUs that are needed to train and run large-language models, or LLMs. These AI GPUs underpin chatbots like the ones developed by OpenAI, Meta Platforms Inc. (META), or Elon Musk’s X.DeepSeek is an artificial intelligence startup in China that utilizes open-source technology and develops similar chatbots. The Chinese company made waves this week as the company revealed its chatbot, which apparently has been built at a cost of $6 million based on the open source DeepSeek-V3 model.While the price tag has not yet been independently verified, as I understand it, the mere appearance of a potentially cheaper path to train large-language models has sent shockwaves through the markets earlier this week. A case in point is Nvidia, which lost $600 billion in market valuation just on the back of the DeepSeek news.The fear here is that the AI market could now transition to a new kind of low-cost model that forces companies to downscale their AI investments. This would obviously be a setback for companies that have made aggressive wagers on GPUs, such as Nvidia.According to the news, DeepSeek’s chatbot rivals OpenAI's ChatGPT or Meta's Llama 3.1 in terms of performance, with a main focus on possible cost savings. Tom’s Hardware illustrated that:DeepSeek trained its DeepSeek-V3 Mixture-of-Experts (MoE) language model with 671 billion parameters using a cluster containing 2,048 Nvidia H800 GPUs in just two months, which means 2.8 million GPU hours, according to its paper. For comparison, it took Meta 11 times more compute power (30.8 million GPU hours) to train its Llama 3 with 405 billion parameters using a cluster containing 16,384 H100 GPUs over the course of 54 days.The intrigue about DeepSeek’s R1 model is that it lowers computational costs related to each prompt. This means it could, possibly, offer a way for companies to train AI models by shortening training times as well as reducing the need for less compute power.With that said, it is unlikely that U.S. companies will want to base their AI infrastructure on Chinese technology, and they are still going to need Nvidia’s advanced chips to power their data centers.I think the most probable outcome is that the race for supremacy in the AI realm is accelerating and possibly opening up a door for lower-cost AI to develop. What I don’t think is going to change is the big upswing in GPU volumes that will be needed to run either U.S. or Chinese AI models.DeepSeek Is Likely Not Going To Have A Substantial Impact On Nvidia’s SalesNvidia experienced an unprecedented sales surge in the first nine months of last year: The chip company produced $80 billion in sales in the first three quarters of its 2025 financial year.Sales in the first nine months of the year were up more than 430% over Nvidia’s entire sales in 2023, and the chip company still has another quarter to go.Most likely, Nvidia has ended the 2025 financial year with a total sales volume somewhere in the $120 billion ballpark and more growth awaits the AI GPU king this year (Nvidia’s 2026 financial year).RevenueIn the short-and medium-term, DeepSeek is likely not have a substantial impact on Nvidia’s data center business and sales upsurge as companies continue to spend a boatload of money to fix their immediate need for more AI compute.Nvidia’s advanced chips engineered for AI workloads are therefore going to remain in high demand, which in turn should equate to considerable volume growth and higher operating income. Nvidia’s operating income has already skyrocketed with more growth anticipated thanks to the launch of Nvidia’s latest GPU, the Blackwell.Operating IncomeNvidia’s P/E Correction Is A Buying OpportunityThe DeepSeek controversy has sent shockwaves through the AI and semiconductor markets. This led to big declines in the stock prices of pretty much every artificial intelligence company, including Nvidia, Advanced Micro Devices (AMD), Micron Technology (MU), Broadcom (AVGO) and ASML Holding N.V. (ASML).In the short term, semi valuations might remain under pressure as investors try to assess the impact of DeepSeek’s AI model on GPU demand, but Nvidia has a solidly reliable history of innovation. Nvidia, for example, is developing a cloud-native development platform, known as Enterprise AI, which helps companies deploy generative AI applications at scale.Nvidia is selling for a leading profit multiple of 28x, whereas Advanced Micro Devices’ multiple is down to 23x. Nvidia is anticipated to produce an impressive 51% jump in profits this year, and the GPU company is probably still going to sell a lot more advanced chips in the future than it is now. The good news is that investors can now grab Nvidia out of the bargain bin, as did I at $117, at a hugely improved risk/reward trade-off.Earnings EstimateWhy The Investment Thesis Might Be More Risky NowDeepSeek does not pose a fundamental challenge to either Nvidia’s business model, or its strong position in the data center market, in my view. Nvidia is poised to continue to grow, mainly in data center GPUs, which are needed to support the broad application of AI products.With that said, the pace of technological innovation is poised to kick into high gear now and China has demonstrated that it can be competitive in the market for AI models.Though it may get more challenging for people to keep up with new developments in the AI market, to read an existential challenge into DeepSeek is probably exaggerated.On the flip side, should China prove that it can provide competitive AI products without the need for billions of dollars of investments in the most advanced chips, then Nvidia might see growing pressure on its market share.My ConclusionNvidia is growing its data center business via the latest Blackwell GPU, a leading, next-gen AI-oriented semiconductor chip that is meant to accelerate the handling of AI workloads.DeepSeek might be a promising innovation, but the need for AI GPUs is not going to go away and should not in any meaningful way curtail Nvidia’s market potential in this burgeoning segment. Nvidia owns more than 90% of the GPU market, which firmly establishes the company as the ultimate leader in the data center industry.Nvidia’s profit multiple has contracted by a good 20% compared to last week, thanks to DeepSeek rattling U.S. investors about the potential emergence of lower-cost AI models. I think that the drastic decline in Nvidia’s profit multiple indicates an elevated level of fear that investors should take advantage of. Once investors are more level-headed, I think there is a good chance that investors will drive a re-rating of Nvidia’s stock.Chances are that the DeepSeek controversy is not going to have an overly dramatic impact on any of the U.S.’s leading chip companies, including Nvidia. The company’s sales potential should not be affected either as demand for GPUs, with or without DeepSeek, is only going to increase moving forward.Nvidia is at the top of its industry for a reason, as it has proven itself as an AI pioneer itself. Thus, I think Nvidia deserves the benefit of the doubt and I recommend doubling down on the crash.","news_type":1,"symbols_score_info":{"NVDA":1.1}},"isVote":1,"tweetType":1,"viewCount":2087,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":398904379199616,"gmtCreate":1738413872964,"gmtModify":1738416786747,"author":{"id":"4201061858351912","authorId":"4201061858351912","name":"Widraw","avatar":"https://community-static.tradeup.com/news/dfead61c8f4e8ef924f983b493e29683","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4201061858351912","idStr":"4201061858351912"},"themes":[],"title":"Pricing - Tiger Brokers Hong Kong","htmlText":"Find out more here: <a href=\"https://www.gotigerhk.com/hk/en/commissions?banner=0&amp;skin=2&amp;os=iOS&amp;account_id=&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=0156e7ecd77207dcabc24d9e2c287061&amp;invite=8OWIS9&amp;lang=en_US\">Pricing - Tiger Brokers Hong Kong</a> Pricing - Tiger Brokers Hong Kong","listText":"Find out more here: <a href=\"https://www.gotigerhk.com/hk/en/commissions?banner=0&amp;skin=2&amp;os=iOS&amp;account_id=&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=0156e7ecd77207dcabc24d9e2c287061&amp;invite=8OWIS9&amp;lang=en_US\">Pricing - Tiger Brokers Hong Kong</a> Pricing - Tiger Brokers Hong Kong","text":"Find out more here: Pricing - Tiger Brokers Hong Kong Pricing - Tiger Brokers Hong Kong","images":[{"img":"https://static.tigerbbs.com/ff98eccfaff055c5a7c86bee57069e0c"}],"top":1,"highlighted":1,"essential":1,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/398904379199616","isVote":1,"tweetType":1,"viewCount":2450,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":398902579675600,"gmtCreate":1738413744732,"gmtModify":1739169504953,"author":{"id":"4201061858351912","authorId":"4201061858351912","name":"Widraw","avatar":"https://community-static.tradeup.com/news/dfead61c8f4e8ef924f983b493e29683","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4201061858351912","idStr":"4201061858351912"},"themes":[],"title":"Help Center - Tiger Brokers","htmlText":"Find out more here: <a href=\"https://www.gotigerhk.com/hk/en/help/detail/34490240?skin=2&amp;os=iOS&amp;account_id=&amp;utm_source=help_center&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=c942c915e9169604e90a2023c52f33ed&amp;invite=8OWIS9&amp;lang=en_US\">Help Center - Tiger Brokers</a> Tiger Brokers is a company listed on NASDAQ. 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Investors can easily open accounts online with Tiger Brokers.","images":[{"img":"https://static.tigerbbs.com/ff98eccfaff055c5a7c86bee57069e0c"}],"top":1,"highlighted":1,"essential":1,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/398902579675600","isVote":1,"tweetType":1,"viewCount":1951,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":398902215848576,"gmtCreate":1738413650134,"gmtModify":1738416786246,"author":{"id":"4201061858351912","authorId":"4201061858351912","name":"Widraw","avatar":"https://community-static.tradeup.com/news/dfead61c8f4e8ef924f983b493e29683","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4201061858351912","idStr":"4201061858351912"},"themes":[],"title":"Help Center - Tiger Brokers","htmlText":"Find out more here: <a href=\"https://www.gotigerhk.com/hk/en/help/detail/74055241?utm_source=help_center&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=4e0627250ee673da0123a3a89b7a8269&amp;invite=8OWIS9&amp;lang=en_US\">Help Center - Tiger Brokers</a> Tiger Brokers is a company listed on NASDAQ. 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Investors can easily open accounts online with Tiger Brokers.","images":[{"img":"https://community-static.tradeup.com/news/cb2599fa9f89d0e89b48c52cf049aa84","width":"1284","height":"2778"}],"top":1,"highlighted":1,"essential":1,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/398902215848576","isVote":1,"tweetType":1,"viewCount":1873,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":2,"langContent":"EN","totalScore":0},{"id":398903166845144,"gmtCreate":1738413600771,"gmtModify":1738416786183,"author":{"id":"4201061858351912","authorId":"4201061858351912","name":"Widraw","avatar":"https://community-static.tradeup.com/news/dfead61c8f4e8ef924f983b493e29683","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4201061858351912","idStr":"4201061858351912"},"themes":[],"title":"Help Center - Tiger Brokers","htmlText":"Find out more here: <a href=\"https://www.gotigerhk.com/hk/en/help/detail/34490240?utm_source=help_center&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=2a76ad76deca20e973467842c13472a9&amp;invite=8OWIS9&amp;lang=en_US\">Help Center - Tiger Broker</a><a href=\"https://ttm.financial/S/NVDA\">$NVIDIA(NVDA)$&nbsp;</a>&nbsp; Tiger Brokers is a company listed on NASDAQ. With U.S. licenses, it has become the platform of choice for global Chinese investors to trade in the U.S. and Hong Kong. Investors can easily open accounts online with Tiger Brokers.","listText":"Find out more here: <a href=\"https://www.gotigerhk.com/hk/en/help/detail/34490240?utm_source=help_center&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=2a76ad76deca20e973467842c13472a9&amp;invite=8OWIS9&amp;lang=en_US\">Help Center - Tiger Broker</a><a href=\"https://ttm.financial/S/NVDA\">$NVIDIA(NVDA)$&nbsp;</a>&nbsp; Tiger Brokers is a company listed on NASDAQ. With U.S. licenses, it has become the platform of choice for global Chinese investors to trade in the U.S. and Hong Kong. Investors can easily open accounts online with Tiger Brokers.","text":"Find out more here: Help Center - Tiger Broker$NVIDIA(NVDA)$ Tiger Brokers is a company listed on NASDAQ. With U.S. licenses, it has become the platform of choice for global Chinese investors to trade in the U.S. and Hong Kong. Investors can easily open accounts online with Tiger Brokers.","images":[{"img":"https://static.tigerbbs.com/ff98eccfaff055c5a7c86bee57069e0c"}],"top":1,"highlighted":1,"essential":1,"paper":2,"likeSize":1,"commentSize":1,"repostSize":1,"link":"https://ttm.financial/post/398903166845144","isVote":1,"tweetType":1,"viewCount":3432,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":398903026602112,"gmtCreate":1738413542740,"gmtModify":1738416786119,"author":{"id":"4201061858351912","authorId":"4201061858351912","name":"Widraw","avatar":"https://community-static.tradeup.com/news/dfead61c8f4e8ef924f983b493e29683","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4201061858351912","idStr":"4201061858351912"},"themes":[],"title":"Help Center - Tiger Brokers","htmlText":"Find out more here: <a href=\"https://www.gotigerhk.com/hk/en/help/detail/47721762?skin=2&amp;os=iOS&amp;account_id=&amp;utm_source=help_center&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=922d962b3e92d5d054efd979a055ce1d&amp;invite=8OWIS9&amp;lang=en_US\">Help Center - Tiger Brokers</a> Tiger Brokers is a company listed on NASDAQ. With U.S. licenses, it has become the platform of choice for global Chinese investors to trade in the U.S. and Hong Kong. Investors can easily open accounts online with Tiger Brokers.","listText":"Find out more here: <a href=\"https://www.gotigerhk.com/hk/en/help/detail/47721762?skin=2&amp;os=iOS&amp;account_id=&amp;utm_source=help_center&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=922d962b3e92d5d054efd979a055ce1d&amp;invite=8OWIS9&amp;lang=en_US\">Help Center - Tiger Brokers</a> Tiger Brokers is a company listed on NASDAQ. With U.S. licenses, it has become the platform of choice for global Chinese investors to trade in the U.S. and Hong Kong. Investors can easily open accounts online with Tiger Brokers.","text":"Find out more here: Help Center - Tiger Brokers Tiger Brokers is a company listed on NASDAQ. With U.S. licenses, it has become the platform of choice for global Chinese investors to trade in the U.S. and Hong Kong. Investors can easily open accounts online with Tiger Brokers.","images":[{"img":"https://static.tigerbbs.com/ff98eccfaff055c5a7c86bee57069e0c"}],"top":1,"highlighted":1,"essential":1,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/398903026602112","isVote":1,"tweetType":1,"viewCount":1747,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":398903627133504,"gmtCreate":1738413515931,"gmtModify":1738416787700,"author":{"id":"4201061858351912","authorId":"4201061858351912","name":"Widraw","avatar":"https://community-static.tradeup.com/news/dfead61c8f4e8ef924f983b493e29683","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4201061858351912","idStr":"4201061858351912"},"themes":[],"title":"Help Center - Tiger Brokers","htmlText":"Find out more here: <a href=\"https://www.gotigerhk.com/hk/en/help/detail/66117947?skin=2&amp;os=iOS&amp;account_id=&amp;utm_source=help_center&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=edf53b92244154647e5b69760a14adf1&amp;invite=8OWIS9&amp;lang=en_US\">Help Center - Tiger Brokers</a> Tiger Brokers is a company listed on NASDAQ. With U.S. licenses, it has become the platform of choice for global Chinese investors to trade in the U.S. and Hong Kong. Investors can easily open accounts online with Tiger Brokers.","listText":"Find out more here: <a href=\"https://www.gotigerhk.com/hk/en/help/detail/66117947?skin=2&amp;os=iOS&amp;account_id=&amp;utm_source=help_center&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=edf53b92244154647e5b69760a14adf1&amp;invite=8OWIS9&amp;lang=en_US\">Help Center - Tiger Brokers</a> Tiger Brokers is a company listed on NASDAQ. With U.S. licenses, it has become the platform of choice for global Chinese investors to trade in the U.S. and Hong Kong. Investors can easily open accounts online with Tiger Brokers.","text":"Find out more here: Help Center - Tiger Brokers Tiger Brokers is a company listed on NASDAQ. With U.S. licenses, it has become the platform of choice for global Chinese investors to trade in the U.S. and Hong Kong. Investors can easily open accounts online with Tiger Brokers.","images":[{"img":"https://static.tigerbbs.com/ff98eccfaff055c5a7c86bee57069e0c"}],"top":1,"highlighted":1,"essential":1,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/398903627133504","isVote":1,"tweetType":1,"viewCount":1790,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":398892855108000,"gmtCreate":1738411279003,"gmtModify":1738411282100,"author":{"id":"4201061858351912","authorId":"4201061858351912","name":"Widraw","avatar":"https://community-static.tradeup.com/news/dfead61c8f4e8ef924f983b493e29683","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4201061858351912","idStr":"4201061858351912"},"themes":[],"htmlText":"accept payment","listText":"accept payment","text":"accept payment","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/398892855108000","repostId":"2508066912","repostType":2,"isVote":1,"tweetType":1,"viewCount":2221,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":398880241266904,"gmtCreate":1738408003706,"gmtModify":1738408007716,"author":{"id":"4201061858351912","authorId":"4201061858351912","name":"Widraw","avatar":"https://community-static.tradeup.com/news/dfead61c8f4e8ef924f983b493e29683","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4201061858351912","idStr":"4201061858351912"},"themes":[],"htmlText":"nmorey714//<a href=\"https://ttm.financial/U/4201061858351912\">@Widraw</a>: Great article, would you like to share it?","listText":"nmorey714//<a href=\"https://ttm.financial/U/4201061858351912\">@Widraw</a>: Great article, would you like to share it?","text":"nmorey714//@Widraw: Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/398880241266904","repostId":"1131810508","repostType":2,"repost":{"id":"1131810508","kind":"news","pubTimestamp":1738391318,"share":"https://ttm.financial/m/news/1131810508?lang=en_US&edition=fundamental","pubTime":"2025-02-01 14:28","market":"us","language":"en","title":"Broadcom Could Be The Ultimate Beneficiary From The DeepSeek Selloff","url":"https://stock-news.laohu8.com/highlight/detail?id=1131810508","media":"seekingalpha","summary":"particularly on a semiconductor bellwether of the quality of Broadcom. Recall in my previous update that I indicated hyperscalers are increasingly looking to build their custom chips business, as they seek to hedge their exposure against Nvidia.And with DeepSeek’s breakthrough this week, the stage is set for Broadcom to possibly","content":"<html><head></head><body><h2 id=\"id_2683858561\">Summary</h2><ul style=\"\"><li><p>Broadcom Inc. recovered almost 5% yesterday, as dip buyers realized that the market might have been wrong in selling off AVGO.</p></li><li><p>Broadcom is well poised to benefit from increased focus on custom AI compute as big tech shifts more into inference.</p></li><li><p>DeepSeek&#39;s incredible achievements in lowering the hurdle for cost-efficient AI models could drive share gains for Broadcom.</p></li><li><p>Meta highlighted that it will invest more in its custom MTIA chips for inference before broadening to training workloads.</p></li><li><p>I argue why AVGO stock could be the ultimate beneficiary as hyperscalers tweak their plans to focus on more cost-effective custom AI chips.</p></li><li><p>I am JR research, an opportunistic investor who identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&amp;P 500. I run the investing group Ultimate Growth Investing.</p></li></ul><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/ba8f6f5ea07cc4fd8025f75fe7308326\" alt=\"Broadcom offices in Silicon Valley\" title=\"Broadcom offices in Silicon Valley\" tg-width=\"750\" tg-height=\"500\"/><span>Broadcom offices in Silicon Valley</span></p><p></p><p>What a week for semiconductor investors, as DeepSeek (DEEPSEEK) threatened to send us “into the unknown,” even though the models that it unveiled have already been in the “market” since Christmas. American AI companies and chipmakers probably tried to play it “cool” as there wasn’t a lot of hustle and bustle going on about DeepSeek until the record one-day swing in Nvidia (NVDA) stock this Monday.</p><p>Questions about the implications of DeepSeek’s incredible progress through its open weight release (not truly open source) were flagged by Stratechery’s Ben Thompson on January 21. They were already in in-depth discussion in the AI world, as Tesla’s (TSLA) former AI director Andrej Karpathy alluded to, while Nvidia’s senior research manager Jim Fan also pointed to in his posts.</p><p>Of course, we all know what took place just before January 21, as the world likely was too focused on President Trump’s inauguration and his first “100 hours.” The “avalanche” of activities included a media blitz and the signing of a deluge of executive orders, as the Trump administration attempts to shake up the old order (left by Biden). He was modeling new ones to fulfill his campaign promises (while not having to worry about reelection), as Trump seeks to “Make America (truly) Great Again” on his second and final term.</p><p>As for <strong>Broadcom Inc.</strong> (NASDAQ:AVGO), I believe the opportunity couldn’t have come at a more appropriate moment. While it certainly also felt the knee-jerk reaction on Monday, the stock gained 4.5% during Thursday&#39;s session as I write this update, and it has recovered 10% from its lows this week. However, amid the confusion in the market caused by DeepSeek’s revelations, I believe investors are right to be cautious, but there’s no need to “freak out” still…particularly on a semiconductor bellwether of the quality of Broadcom. Recall in my previous update that I indicated hyperscalers are increasingly looking to build their custom chips business, as they seek to hedge their exposure against Nvidia.</p><p>And with DeepSeek’s breakthrough this week, the stage is set for Broadcom to possibly win even more business from big tech. Why? Now remember that Broadcom has a well diversified portfolio that spans a range of semiconductor solutions and also software. However, its AI portfolio has gained even more credence, particularly in the networking and custom AI chips opportunities.</p><p>And these custom chips are likely going to play an increasingly pivotal role as AI scaling progresses from pretraining to test time compute. Hence, inference will likely see a sharper growth inflection in spending on AI compute. That thesis has been corroborated by one of Broadcom’s main customers, and you probably know who, as this customer just released its earnings on Wednesday evening: Meta (META). Let’s hear it from Meta CFO Susan Li at her company’s earnings call:</p><blockquote><p>Finally, we’re pursuing cost efficiencies by deploying our custom MTIA silicon in areas where we can achieve a lower cost of compute by optimizing the chip to our unique workloads. In 2024 we started deploying MTIA to our ranking and recommendation inference workloads for ads and organic content. We expect to further ramp adoption of MTIA for these use cases throughout 2025 before extending our custom silicon efforts to training workloads for ranking and recommendations next year. - (Meta Q4FY2024 earnings call.)</p></blockquote><p>Did you manage to catch “custom MTIA silicon in areas where we can achieve a lower cost of compute?” While MTIA certainly isn’t new, I believe the war rooms set up by Meta this week has likely jolted the company into action. It seeks to regain traction with enterprise customers and application developers who might be (or considering) migrating to DeepSeek’s model, while eschewing Meta’s large language models, or LLMs. Unless you have not been reading up about DeepSeek, we are likely all aware that the China-based AI firm has scored top accolades for its ability to achieve significant improvements in cost efficiencies through its algo innovation. It has impressed the AI community so much that requests to use DeepSeek’s models have gained traction, such as even Microsoft (MSFT) has decided to host it in Azure.</p><p>Therefore, while Meta and its LLM peers will no doubt seek to build even more AI compute on the training front, MTIA will likely feature heavily in its upgraded CapEx outlook of up to $65B this year. Meta isn’t shying away as it underscores its intention to “further ramp adoption of MTIA,” and even alluded to using its custom silicon for training workloads as well.</p><p>Therefore, that brings us back to Broadcom’s AI revenue SAM outlook of between $60B and $90B, with a midpoint of $75B. I believe the market is likely seeing a higher potential of Broadcom moving closer to the top end of its guidance range. This could drive even more upgrades, as the company has already pointed to “two (new) undisclosed customers” in December, with OpenAI potentially being one of them.</p><p>An October report suggesting that OpenAI has been working on such a custom AI chip with Broadcom corroborates the view that I’ve presented. While Nvidia might continue to feature heavily in OpenAI’s highly ambitious $500B Stargate partnership venture, I believe the upside bias of including more of AVGO can no longer be understated. This is even though the company has yet to be included in the list of main technology partners, as indicated in OpenAI’s press release. However, if you read its press release carefully, the company indicated that “Arm, Microsoft, Nvidia, Oracle, and OpenAI are the key initial technology partners.” Incidentally, the key word here is none other than “initial.” Will Broadcom feature? I think the market’s positive reaction based on today’s surge likely sees AVGO playing not just a key role in Meta’s upgraded CapEx spending, but also the potential opening with OpenAI. This might not have been fully contemplated into Broadcom’s prognosis when it first presented its game plan in December last year.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/6260289227dc3ef584142d7052c8263b\" alt=\"Broadcom estimates\" title=\"Broadcom estimates\" tg-width=\"1280\" tg-height=\"768\"/><span>Broadcom estimates</span></p><p></p><p>Now, I don’t think Broadcom will change or upgrade its SAM opportunity anytime soon, although I believe it does clarify the company’s revenue trajectory better past FY2025. After accounting for VMware’s acquisition, AVGO’s revenue growth rates should normalize through FY2026, even though it’s still markedly above the five-year average of 12.5%.</p><p>I think uncertainties pertaining to the near term growth impact from Meta and OpenAI could persist, although Meta has made it clear that the inference ramp up is for 2025, which should benefit Broadcom. Hence, I believe the market is likely betting that CEO Hock Tan and his team could telegraph a clearer outlook toward achieving the upper boundary of Broadcom’s updated outlook. There is a possibility of an even more optimistic guidance if we can have better clarity into Stargate’s long-term plans. However, I think that remains a growth optionality for now. The developments are still too nascent for us to consider the accretion, particularly as the venture has yet to list AVGO as one of the main tech partners.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/328b89be4e5a3157ac41991b41988090\" alt=\"AVGO price chart (weekly, medium-term, adjusted for dividends)\" title=\"AVGO price chart (weekly, medium-term, adjusted for dividends)\" tg-width=\"1280\" tg-height=\"787\"/><span>AVGO price chart (weekly, medium-term, adjusted for dividends)</span></p><p></p><p>While the DeepSeek fallout did see AVGO take a tumble this week, I’ve also assessed a possible bullish reversal signal while writing this update, auguring well for buying the dips aggressively. AVGO has already dropped more than 20% from its December highs through its lows this week, placing the stock briefly in bear market territory, although dip buyers have capitalized.</p><p>I don&#39;t expect hyperscalers to pull back from their plans of investing more aggressively into custom AI compute. They probably might even allocate more spending to Broadcom’s AI chips, as they seek to lower their costs in their bid to improve their cost efficiencies further. Moreover, Broadcom’s well diversified portfolio should help to mitigate the uncertainties from DeepSeek, and help investors to lower their volatility risks as compared to the higher AI revenue concentration in Nvidia’s business segments.</p><p>AVGO’s forward EBITDA multiple of 26.6x is in line with Nvidia’s 26.4x metric. So, the market has clearly upgraded their outlook on Broadcom’s prospects, likely seeing the semiconductor leader as a credible contender to stake its claim as the second horse in the race against Nvidia’s stranglehold on merchant AI chips. Despite that, AVGO’s PEG ratio of 1.5 suggests the stock isn’t overvalued when we juxtapose it against its tech sector peer&#39;s median of 1.81 (17% discount). Therefore, I believe it is reasonable for me to maintain my optimism in the stock, notwithstanding the slew of uncertainties linked to DeepSeek’s morass.</p><p>Investors who feared the worst and took their positions off on Monday are likely regretting the move now, as data center operators have shown little inclination to lower their penchant for AI compute. Instead, it has likely strengthened their resolve to find more opportunities to level up their efficiencies across the value chain, and Broadcom offers a tremendous opportunity to do so. Coupled with its relatively attractive valuation, I see the potential bullish reversal in AVGO as offering investors another timely opportunity to gain more exposure to a high-quality semiconductor leader.</p><p>Rating: Maintain Buy.</p></body></html>","source":"lsy1728464409321","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Broadcom Could Be The Ultimate Beneficiary From The DeepSeek Selloff</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBroadcom Could Be The Ultimate Beneficiary From The DeepSeek Selloff\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-02-01 14:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4753835-broadcom-could-be-ultimate-beneficiary-from-deepseek-selloff><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryBroadcom Inc. recovered almost 5% yesterday, as dip buyers realized that the market might have been wrong in selling off AVGO.Broadcom is well poised to benefit from increased focus on custom ...</p>\n\n<a href=\"https://seekingalpha.com/article/4753835-broadcom-could-be-ultimate-beneficiary-from-deepseek-selloff\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AVGO":"博通"},"source_url":"https://seekingalpha.com/article/4753835-broadcom-could-be-ultimate-beneficiary-from-deepseek-selloff","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1131810508","content_text":"SummaryBroadcom Inc. recovered almost 5% yesterday, as dip buyers realized that the market might have been wrong in selling off AVGO.Broadcom is well poised to benefit from increased focus on custom AI compute as big tech shifts more into inference.DeepSeek's incredible achievements in lowering the hurdle for cost-efficient AI models could drive share gains for Broadcom.Meta highlighted that it will invest more in its custom MTIA chips for inference before broadening to training workloads.I argue why AVGO stock could be the ultimate beneficiary as hyperscalers tweak their plans to focus on more cost-effective custom AI chips.I am JR research, an opportunistic investor who identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. I run the investing group Ultimate Growth Investing.Broadcom offices in Silicon ValleyWhat a week for semiconductor investors, as DeepSeek (DEEPSEEK) threatened to send us “into the unknown,” even though the models that it unveiled have already been in the “market” since Christmas. American AI companies and chipmakers probably tried to play it “cool” as there wasn’t a lot of hustle and bustle going on about DeepSeek until the record one-day swing in Nvidia (NVDA) stock this Monday.Questions about the implications of DeepSeek’s incredible progress through its open weight release (not truly open source) were flagged by Stratechery’s Ben Thompson on January 21. They were already in in-depth discussion in the AI world, as Tesla’s (TSLA) former AI director Andrej Karpathy alluded to, while Nvidia’s senior research manager Jim Fan also pointed to in his posts.Of course, we all know what took place just before January 21, as the world likely was too focused on President Trump’s inauguration and his first “100 hours.” The “avalanche” of activities included a media blitz and the signing of a deluge of executive orders, as the Trump administration attempts to shake up the old order (left by Biden). He was modeling new ones to fulfill his campaign promises (while not having to worry about reelection), as Trump seeks to “Make America (truly) Great Again” on his second and final term.As for Broadcom Inc. (NASDAQ:AVGO), I believe the opportunity couldn’t have come at a more appropriate moment. While it certainly also felt the knee-jerk reaction on Monday, the stock gained 4.5% during Thursday's session as I write this update, and it has recovered 10% from its lows this week. However, amid the confusion in the market caused by DeepSeek’s revelations, I believe investors are right to be cautious, but there’s no need to “freak out” still…particularly on a semiconductor bellwether of the quality of Broadcom. Recall in my previous update that I indicated hyperscalers are increasingly looking to build their custom chips business, as they seek to hedge their exposure against Nvidia.And with DeepSeek’s breakthrough this week, the stage is set for Broadcom to possibly win even more business from big tech. Why? Now remember that Broadcom has a well diversified portfolio that spans a range of semiconductor solutions and also software. However, its AI portfolio has gained even more credence, particularly in the networking and custom AI chips opportunities.And these custom chips are likely going to play an increasingly pivotal role as AI scaling progresses from pretraining to test time compute. Hence, inference will likely see a sharper growth inflection in spending on AI compute. That thesis has been corroborated by one of Broadcom’s main customers, and you probably know who, as this customer just released its earnings on Wednesday evening: Meta (META). Let’s hear it from Meta CFO Susan Li at her company’s earnings call:Finally, we’re pursuing cost efficiencies by deploying our custom MTIA silicon in areas where we can achieve a lower cost of compute by optimizing the chip to our unique workloads. In 2024 we started deploying MTIA to our ranking and recommendation inference workloads for ads and organic content. We expect to further ramp adoption of MTIA for these use cases throughout 2025 before extending our custom silicon efforts to training workloads for ranking and recommendations next year. - (Meta Q4FY2024 earnings call.)Did you manage to catch “custom MTIA silicon in areas where we can achieve a lower cost of compute?” While MTIA certainly isn’t new, I believe the war rooms set up by Meta this week has likely jolted the company into action. It seeks to regain traction with enterprise customers and application developers who might be (or considering) migrating to DeepSeek’s model, while eschewing Meta’s large language models, or LLMs. Unless you have not been reading up about DeepSeek, we are likely all aware that the China-based AI firm has scored top accolades for its ability to achieve significant improvements in cost efficiencies through its algo innovation. It has impressed the AI community so much that requests to use DeepSeek’s models have gained traction, such as even Microsoft (MSFT) has decided to host it in Azure.Therefore, while Meta and its LLM peers will no doubt seek to build even more AI compute on the training front, MTIA will likely feature heavily in its upgraded CapEx outlook of up to $65B this year. Meta isn’t shying away as it underscores its intention to “further ramp adoption of MTIA,” and even alluded to using its custom silicon for training workloads as well.Therefore, that brings us back to Broadcom’s AI revenue SAM outlook of between $60B and $90B, with a midpoint of $75B. I believe the market is likely seeing a higher potential of Broadcom moving closer to the top end of its guidance range. This could drive even more upgrades, as the company has already pointed to “two (new) undisclosed customers” in December, with OpenAI potentially being one of them.An October report suggesting that OpenAI has been working on such a custom AI chip with Broadcom corroborates the view that I’ve presented. While Nvidia might continue to feature heavily in OpenAI’s highly ambitious $500B Stargate partnership venture, I believe the upside bias of including more of AVGO can no longer be understated. This is even though the company has yet to be included in the list of main technology partners, as indicated in OpenAI’s press release. However, if you read its press release carefully, the company indicated that “Arm, Microsoft, Nvidia, Oracle, and OpenAI are the key initial technology partners.” Incidentally, the key word here is none other than “initial.” Will Broadcom feature? I think the market’s positive reaction based on today’s surge likely sees AVGO playing not just a key role in Meta’s upgraded CapEx spending, but also the potential opening with OpenAI. This might not have been fully contemplated into Broadcom’s prognosis when it first presented its game plan in December last year.Broadcom estimatesNow, I don’t think Broadcom will change or upgrade its SAM opportunity anytime soon, although I believe it does clarify the company’s revenue trajectory better past FY2025. After accounting for VMware’s acquisition, AVGO’s revenue growth rates should normalize through FY2026, even though it’s still markedly above the five-year average of 12.5%.I think uncertainties pertaining to the near term growth impact from Meta and OpenAI could persist, although Meta has made it clear that the inference ramp up is for 2025, which should benefit Broadcom. Hence, I believe the market is likely betting that CEO Hock Tan and his team could telegraph a clearer outlook toward achieving the upper boundary of Broadcom’s updated outlook. There is a possibility of an even more optimistic guidance if we can have better clarity into Stargate’s long-term plans. However, I think that remains a growth optionality for now. The developments are still too nascent for us to consider the accretion, particularly as the venture has yet to list AVGO as one of the main tech partners.AVGO price chart (weekly, medium-term, adjusted for dividends)While the DeepSeek fallout did see AVGO take a tumble this week, I’ve also assessed a possible bullish reversal signal while writing this update, auguring well for buying the dips aggressively. AVGO has already dropped more than 20% from its December highs through its lows this week, placing the stock briefly in bear market territory, although dip buyers have capitalized.I don't expect hyperscalers to pull back from their plans of investing more aggressively into custom AI compute. They probably might even allocate more spending to Broadcom’s AI chips, as they seek to lower their costs in their bid to improve their cost efficiencies further. Moreover, Broadcom’s well diversified portfolio should help to mitigate the uncertainties from DeepSeek, and help investors to lower their volatility risks as compared to the higher AI revenue concentration in Nvidia’s business segments.AVGO’s forward EBITDA multiple of 26.6x is in line with Nvidia’s 26.4x metric. So, the market has clearly upgraded their outlook on Broadcom’s prospects, likely seeing the semiconductor leader as a credible contender to stake its claim as the second horse in the race against Nvidia’s stranglehold on merchant AI chips. Despite that, AVGO’s PEG ratio of 1.5 suggests the stock isn’t overvalued when we juxtapose it against its tech sector peer's median of 1.81 (17% discount). Therefore, I believe it is reasonable for me to maintain my optimism in the stock, notwithstanding the slew of uncertainties linked to DeepSeek’s morass.Investors who feared the worst and took their positions off on Monday are likely regretting the move now, as data center operators have shown little inclination to lower their penchant for AI compute. Instead, it has likely strengthened their resolve to find more opportunities to level up their efficiencies across the value chain, and Broadcom offers a tremendous opportunity to do so. Coupled with its relatively attractive valuation, I see the potential bullish reversal in AVGO as offering investors another timely opportunity to gain more exposure to a high-quality semiconductor leader.Rating: Maintain Buy.","news_type":1,"symbols_score_info":{"AVGO":1.1}},"isVote":1,"tweetType":1,"viewCount":679,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":398836609310792,"gmtCreate":1738397513308,"gmtModify":1738397516567,"author":{"id":"4201061858351912","authorId":"4201061858351912","name":"Widraw","avatar":"https://community-static.tradeup.com/news/dfead61c8f4e8ef924f983b493e29683","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4201061858351912","idStr":"4201061858351912"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/398836609310792","repostId":"1131810508","repostType":2,"repost":{"id":"1131810508","kind":"news","pubTimestamp":1738391318,"share":"https://ttm.financial/m/news/1131810508?lang=en_US&edition=fundamental","pubTime":"2025-02-01 14:28","market":"us","language":"en","title":"Broadcom Could Be The Ultimate Beneficiary From The DeepSeek Selloff","url":"https://stock-news.laohu8.com/highlight/detail?id=1131810508","media":"seekingalpha","summary":"particularly on a semiconductor bellwether of the quality of Broadcom. Recall in my previous update that I indicated hyperscalers are increasingly looking to build their custom chips business, as they seek to hedge their exposure against Nvidia.And with DeepSeek’s breakthrough this week, the stage is set for Broadcom to possibly","content":"<html><head></head><body><h2 id=\"id_2683858561\">Summary</h2><ul style=\"\"><li><p>Broadcom Inc. recovered almost 5% yesterday, as dip buyers realized that the market might have been wrong in selling off AVGO.</p></li><li><p>Broadcom is well poised to benefit from increased focus on custom AI compute as big tech shifts more into inference.</p></li><li><p>DeepSeek&#39;s incredible achievements in lowering the hurdle for cost-efficient AI models could drive share gains for Broadcom.</p></li><li><p>Meta highlighted that it will invest more in its custom MTIA chips for inference before broadening to training workloads.</p></li><li><p>I argue why AVGO stock could be the ultimate beneficiary as hyperscalers tweak their plans to focus on more cost-effective custom AI chips.</p></li><li><p>I am JR research, an opportunistic investor who identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&amp;P 500. I run the investing group Ultimate Growth Investing.</p></li></ul><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/ba8f6f5ea07cc4fd8025f75fe7308326\" alt=\"Broadcom offices in Silicon Valley\" title=\"Broadcom offices in Silicon Valley\" tg-width=\"750\" tg-height=\"500\"/><span>Broadcom offices in Silicon Valley</span></p><p></p><p>What a week for semiconductor investors, as DeepSeek (DEEPSEEK) threatened to send us “into the unknown,” even though the models that it unveiled have already been in the “market” since Christmas. American AI companies and chipmakers probably tried to play it “cool” as there wasn’t a lot of hustle and bustle going on about DeepSeek until the record one-day swing in Nvidia (NVDA) stock this Monday.</p><p>Questions about the implications of DeepSeek’s incredible progress through its open weight release (not truly open source) were flagged by Stratechery’s Ben Thompson on January 21. They were already in in-depth discussion in the AI world, as Tesla’s (TSLA) former AI director Andrej Karpathy alluded to, while Nvidia’s senior research manager Jim Fan also pointed to in his posts.</p><p>Of course, we all know what took place just before January 21, as the world likely was too focused on President Trump’s inauguration and his first “100 hours.” The “avalanche” of activities included a media blitz and the signing of a deluge of executive orders, as the Trump administration attempts to shake up the old order (left by Biden). He was modeling new ones to fulfill his campaign promises (while not having to worry about reelection), as Trump seeks to “Make America (truly) Great Again” on his second and final term.</p><p>As for <strong>Broadcom Inc.</strong> (NASDAQ:AVGO), I believe the opportunity couldn’t have come at a more appropriate moment. While it certainly also felt the knee-jerk reaction on Monday, the stock gained 4.5% during Thursday&#39;s session as I write this update, and it has recovered 10% from its lows this week. However, amid the confusion in the market caused by DeepSeek’s revelations, I believe investors are right to be cautious, but there’s no need to “freak out” still…particularly on a semiconductor bellwether of the quality of Broadcom. Recall in my previous update that I indicated hyperscalers are increasingly looking to build their custom chips business, as they seek to hedge their exposure against Nvidia.</p><p>And with DeepSeek’s breakthrough this week, the stage is set for Broadcom to possibly win even more business from big tech. Why? Now remember that Broadcom has a well diversified portfolio that spans a range of semiconductor solutions and also software. However, its AI portfolio has gained even more credence, particularly in the networking and custom AI chips opportunities.</p><p>And these custom chips are likely going to play an increasingly pivotal role as AI scaling progresses from pretraining to test time compute. Hence, inference will likely see a sharper growth inflection in spending on AI compute. That thesis has been corroborated by one of Broadcom’s main customers, and you probably know who, as this customer just released its earnings on Wednesday evening: Meta (META). Let’s hear it from Meta CFO Susan Li at her company’s earnings call:</p><blockquote><p>Finally, we’re pursuing cost efficiencies by deploying our custom MTIA silicon in areas where we can achieve a lower cost of compute by optimizing the chip to our unique workloads. In 2024 we started deploying MTIA to our ranking and recommendation inference workloads for ads and organic content. We expect to further ramp adoption of MTIA for these use cases throughout 2025 before extending our custom silicon efforts to training workloads for ranking and recommendations next year. - (Meta Q4FY2024 earnings call.)</p></blockquote><p>Did you manage to catch “custom MTIA silicon in areas where we can achieve a lower cost of compute?” While MTIA certainly isn’t new, I believe the war rooms set up by Meta this week has likely jolted the company into action. It seeks to regain traction with enterprise customers and application developers who might be (or considering) migrating to DeepSeek’s model, while eschewing Meta’s large language models, or LLMs. Unless you have not been reading up about DeepSeek, we are likely all aware that the China-based AI firm has scored top accolades for its ability to achieve significant improvements in cost efficiencies through its algo innovation. It has impressed the AI community so much that requests to use DeepSeek’s models have gained traction, such as even Microsoft (MSFT) has decided to host it in Azure.</p><p>Therefore, while Meta and its LLM peers will no doubt seek to build even more AI compute on the training front, MTIA will likely feature heavily in its upgraded CapEx outlook of up to $65B this year. Meta isn’t shying away as it underscores its intention to “further ramp adoption of MTIA,” and even alluded to using its custom silicon for training workloads as well.</p><p>Therefore, that brings us back to Broadcom’s AI revenue SAM outlook of between $60B and $90B, with a midpoint of $75B. I believe the market is likely seeing a higher potential of Broadcom moving closer to the top end of its guidance range. This could drive even more upgrades, as the company has already pointed to “two (new) undisclosed customers” in December, with OpenAI potentially being one of them.</p><p>An October report suggesting that OpenAI has been working on such a custom AI chip with Broadcom corroborates the view that I’ve presented. While Nvidia might continue to feature heavily in OpenAI’s highly ambitious $500B Stargate partnership venture, I believe the upside bias of including more of AVGO can no longer be understated. This is even though the company has yet to be included in the list of main technology partners, as indicated in OpenAI’s press release. However, if you read its press release carefully, the company indicated that “Arm, Microsoft, Nvidia, Oracle, and OpenAI are the key initial technology partners.” Incidentally, the key word here is none other than “initial.” Will Broadcom feature? I think the market’s positive reaction based on today’s surge likely sees AVGO playing not just a key role in Meta’s upgraded CapEx spending, but also the potential opening with OpenAI. This might not have been fully contemplated into Broadcom’s prognosis when it first presented its game plan in December last year.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/6260289227dc3ef584142d7052c8263b\" alt=\"Broadcom estimates\" title=\"Broadcom estimates\" tg-width=\"1280\" tg-height=\"768\"/><span>Broadcom estimates</span></p><p></p><p>Now, I don’t think Broadcom will change or upgrade its SAM opportunity anytime soon, although I believe it does clarify the company’s revenue trajectory better past FY2025. After accounting for VMware’s acquisition, AVGO’s revenue growth rates should normalize through FY2026, even though it’s still markedly above the five-year average of 12.5%.</p><p>I think uncertainties pertaining to the near term growth impact from Meta and OpenAI could persist, although Meta has made it clear that the inference ramp up is for 2025, which should benefit Broadcom. Hence, I believe the market is likely betting that CEO Hock Tan and his team could telegraph a clearer outlook toward achieving the upper boundary of Broadcom’s updated outlook. There is a possibility of an even more optimistic guidance if we can have better clarity into Stargate’s long-term plans. However, I think that remains a growth optionality for now. The developments are still too nascent for us to consider the accretion, particularly as the venture has yet to list AVGO as one of the main tech partners.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/328b89be4e5a3157ac41991b41988090\" alt=\"AVGO price chart (weekly, medium-term, adjusted for dividends)\" title=\"AVGO price chart (weekly, medium-term, adjusted for dividends)\" tg-width=\"1280\" tg-height=\"787\"/><span>AVGO price chart (weekly, medium-term, adjusted for dividends)</span></p><p></p><p>While the DeepSeek fallout did see AVGO take a tumble this week, I’ve also assessed a possible bullish reversal signal while writing this update, auguring well for buying the dips aggressively. AVGO has already dropped more than 20% from its December highs through its lows this week, placing the stock briefly in bear market territory, although dip buyers have capitalized.</p><p>I don&#39;t expect hyperscalers to pull back from their plans of investing more aggressively into custom AI compute. They probably might even allocate more spending to Broadcom’s AI chips, as they seek to lower their costs in their bid to improve their cost efficiencies further. Moreover, Broadcom’s well diversified portfolio should help to mitigate the uncertainties from DeepSeek, and help investors to lower their volatility risks as compared to the higher AI revenue concentration in Nvidia’s business segments.</p><p>AVGO’s forward EBITDA multiple of 26.6x is in line with Nvidia’s 26.4x metric. So, the market has clearly upgraded their outlook on Broadcom’s prospects, likely seeing the semiconductor leader as a credible contender to stake its claim as the second horse in the race against Nvidia’s stranglehold on merchant AI chips. Despite that, AVGO’s PEG ratio of 1.5 suggests the stock isn’t overvalued when we juxtapose it against its tech sector peer&#39;s median of 1.81 (17% discount). Therefore, I believe it is reasonable for me to maintain my optimism in the stock, notwithstanding the slew of uncertainties linked to DeepSeek’s morass.</p><p>Investors who feared the worst and took their positions off on Monday are likely regretting the move now, as data center operators have shown little inclination to lower their penchant for AI compute. Instead, it has likely strengthened their resolve to find more opportunities to level up their efficiencies across the value chain, and Broadcom offers a tremendous opportunity to do so. Coupled with its relatively attractive valuation, I see the potential bullish reversal in AVGO as offering investors another timely opportunity to gain more exposure to a high-quality semiconductor leader.</p><p>Rating: Maintain Buy.</p></body></html>","source":"lsy1728464409321","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Broadcom Could Be The Ultimate Beneficiary From The DeepSeek Selloff</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBroadcom Could Be The Ultimate Beneficiary From The DeepSeek Selloff\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-02-01 14:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4753835-broadcom-could-be-ultimate-beneficiary-from-deepseek-selloff><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryBroadcom Inc. recovered almost 5% yesterday, as dip buyers realized that the market might have been wrong in selling off AVGO.Broadcom is well poised to benefit from increased focus on custom ...</p>\n\n<a href=\"https://seekingalpha.com/article/4753835-broadcom-could-be-ultimate-beneficiary-from-deepseek-selloff\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AVGO":"博通"},"source_url":"https://seekingalpha.com/article/4753835-broadcom-could-be-ultimate-beneficiary-from-deepseek-selloff","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1131810508","content_text":"SummaryBroadcom Inc. recovered almost 5% yesterday, as dip buyers realized that the market might have been wrong in selling off AVGO.Broadcom is well poised to benefit from increased focus on custom AI compute as big tech shifts more into inference.DeepSeek's incredible achievements in lowering the hurdle for cost-efficient AI models could drive share gains for Broadcom.Meta highlighted that it will invest more in its custom MTIA chips for inference before broadening to training workloads.I argue why AVGO stock could be the ultimate beneficiary as hyperscalers tweak their plans to focus on more cost-effective custom AI chips.I am JR research, an opportunistic investor who identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. I run the investing group Ultimate Growth Investing.Broadcom offices in Silicon ValleyWhat a week for semiconductor investors, as DeepSeek (DEEPSEEK) threatened to send us “into the unknown,” even though the models that it unveiled have already been in the “market” since Christmas. American AI companies and chipmakers probably tried to play it “cool” as there wasn’t a lot of hustle and bustle going on about DeepSeek until the record one-day swing in Nvidia (NVDA) stock this Monday.Questions about the implications of DeepSeek’s incredible progress through its open weight release (not truly open source) were flagged by Stratechery’s Ben Thompson on January 21. They were already in in-depth discussion in the AI world, as Tesla’s (TSLA) former AI director Andrej Karpathy alluded to, while Nvidia’s senior research manager Jim Fan also pointed to in his posts.Of course, we all know what took place just before January 21, as the world likely was too focused on President Trump’s inauguration and his first “100 hours.” The “avalanche” of activities included a media blitz and the signing of a deluge of executive orders, as the Trump administration attempts to shake up the old order (left by Biden). He was modeling new ones to fulfill his campaign promises (while not having to worry about reelection), as Trump seeks to “Make America (truly) Great Again” on his second and final term.As for Broadcom Inc. (NASDAQ:AVGO), I believe the opportunity couldn’t have come at a more appropriate moment. While it certainly also felt the knee-jerk reaction on Monday, the stock gained 4.5% during Thursday's session as I write this update, and it has recovered 10% from its lows this week. However, amid the confusion in the market caused by DeepSeek’s revelations, I believe investors are right to be cautious, but there’s no need to “freak out” still…particularly on a semiconductor bellwether of the quality of Broadcom. Recall in my previous update that I indicated hyperscalers are increasingly looking to build their custom chips business, as they seek to hedge their exposure against Nvidia.And with DeepSeek’s breakthrough this week, the stage is set for Broadcom to possibly win even more business from big tech. Why? Now remember that Broadcom has a well diversified portfolio that spans a range of semiconductor solutions and also software. However, its AI portfolio has gained even more credence, particularly in the networking and custom AI chips opportunities.And these custom chips are likely going to play an increasingly pivotal role as AI scaling progresses from pretraining to test time compute. Hence, inference will likely see a sharper growth inflection in spending on AI compute. That thesis has been corroborated by one of Broadcom’s main customers, and you probably know who, as this customer just released its earnings on Wednesday evening: Meta (META). Let’s hear it from Meta CFO Susan Li at her company’s earnings call:Finally, we’re pursuing cost efficiencies by deploying our custom MTIA silicon in areas where we can achieve a lower cost of compute by optimizing the chip to our unique workloads. In 2024 we started deploying MTIA to our ranking and recommendation inference workloads for ads and organic content. We expect to further ramp adoption of MTIA for these use cases throughout 2025 before extending our custom silicon efforts to training workloads for ranking and recommendations next year. - (Meta Q4FY2024 earnings call.)Did you manage to catch “custom MTIA silicon in areas where we can achieve a lower cost of compute?” While MTIA certainly isn’t new, I believe the war rooms set up by Meta this week has likely jolted the company into action. It seeks to regain traction with enterprise customers and application developers who might be (or considering) migrating to DeepSeek’s model, while eschewing Meta’s large language models, or LLMs. Unless you have not been reading up about DeepSeek, we are likely all aware that the China-based AI firm has scored top accolades for its ability to achieve significant improvements in cost efficiencies through its algo innovation. It has impressed the AI community so much that requests to use DeepSeek’s models have gained traction, such as even Microsoft (MSFT) has decided to host it in Azure.Therefore, while Meta and its LLM peers will no doubt seek to build even more AI compute on the training front, MTIA will likely feature heavily in its upgraded CapEx outlook of up to $65B this year. Meta isn’t shying away as it underscores its intention to “further ramp adoption of MTIA,” and even alluded to using its custom silicon for training workloads as well.Therefore, that brings us back to Broadcom’s AI revenue SAM outlook of between $60B and $90B, with a midpoint of $75B. I believe the market is likely seeing a higher potential of Broadcom moving closer to the top end of its guidance range. This could drive even more upgrades, as the company has already pointed to “two (new) undisclosed customers” in December, with OpenAI potentially being one of them.An October report suggesting that OpenAI has been working on such a custom AI chip with Broadcom corroborates the view that I’ve presented. While Nvidia might continue to feature heavily in OpenAI’s highly ambitious $500B Stargate partnership venture, I believe the upside bias of including more of AVGO can no longer be understated. This is even though the company has yet to be included in the list of main technology partners, as indicated in OpenAI’s press release. However, if you read its press release carefully, the company indicated that “Arm, Microsoft, Nvidia, Oracle, and OpenAI are the key initial technology partners.” Incidentally, the key word here is none other than “initial.” Will Broadcom feature? I think the market’s positive reaction based on today’s surge likely sees AVGO playing not just a key role in Meta’s upgraded CapEx spending, but also the potential opening with OpenAI. This might not have been fully contemplated into Broadcom’s prognosis when it first presented its game plan in December last year.Broadcom estimatesNow, I don’t think Broadcom will change or upgrade its SAM opportunity anytime soon, although I believe it does clarify the company’s revenue trajectory better past FY2025. After accounting for VMware’s acquisition, AVGO’s revenue growth rates should normalize through FY2026, even though it’s still markedly above the five-year average of 12.5%.I think uncertainties pertaining to the near term growth impact from Meta and OpenAI could persist, although Meta has made it clear that the inference ramp up is for 2025, which should benefit Broadcom. Hence, I believe the market is likely betting that CEO Hock Tan and his team could telegraph a clearer outlook toward achieving the upper boundary of Broadcom’s updated outlook. There is a possibility of an even more optimistic guidance if we can have better clarity into Stargate’s long-term plans. However, I think that remains a growth optionality for now. The developments are still too nascent for us to consider the accretion, particularly as the venture has yet to list AVGO as one of the main tech partners.AVGO price chart (weekly, medium-term, adjusted for dividends)While the DeepSeek fallout did see AVGO take a tumble this week, I’ve also assessed a possible bullish reversal signal while writing this update, auguring well for buying the dips aggressively. AVGO has already dropped more than 20% from its December highs through its lows this week, placing the stock briefly in bear market territory, although dip buyers have capitalized.I don't expect hyperscalers to pull back from their plans of investing more aggressively into custom AI compute. They probably might even allocate more spending to Broadcom’s AI chips, as they seek to lower their costs in their bid to improve their cost efficiencies further. Moreover, Broadcom’s well diversified portfolio should help to mitigate the uncertainties from DeepSeek, and help investors to lower their volatility risks as compared to the higher AI revenue concentration in Nvidia’s business segments.AVGO’s forward EBITDA multiple of 26.6x is in line with Nvidia’s 26.4x metric. So, the market has clearly upgraded their outlook on Broadcom’s prospects, likely seeing the semiconductor leader as a credible contender to stake its claim as the second horse in the race against Nvidia’s stranglehold on merchant AI chips. Despite that, AVGO’s PEG ratio of 1.5 suggests the stock isn’t overvalued when we juxtapose it against its tech sector peer's median of 1.81 (17% discount). Therefore, I believe it is reasonable for me to maintain my optimism in the stock, notwithstanding the slew of uncertainties linked to DeepSeek’s morass.Investors who feared the worst and took their positions off on Monday are likely regretting the move now, as data center operators have shown little inclination to lower their penchant for AI compute. Instead, it has likely strengthened their resolve to find more opportunities to level up their efficiencies across the value chain, and Broadcom offers a tremendous opportunity to do so. Coupled with its relatively attractive valuation, I see the potential bullish reversal in AVGO as offering investors another timely opportunity to gain more exposure to a high-quality semiconductor leader.Rating: Maintain Buy.","news_type":1,"symbols_score_info":{"AVGO":1.1}},"isVote":1,"tweetType":1,"viewCount":1009,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":398836073492992,"gmtCreate":1738397499768,"gmtModify":1738397502170,"author":{"id":"4201061858351912","authorId":"4201061858351912","name":"Widraw","avatar":"https://community-static.tradeup.com/news/dfead61c8f4e8ef924f983b493e29683","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4201061858351912","idStr":"4201061858351912"},"themes":[],"htmlText":"<a href=\"https://ttm.financial/U/3543736921383840\">@crypto</a>&nbsp;","listText":"<a href=\"https://ttm.financial/U/3543736921383840\">@crypto</a>&nbsp;","text":"@crypto","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/398836073492992","repostId":"1131810508","repostType":2,"repost":{"id":"1131810508","kind":"news","pubTimestamp":1738391318,"share":"https://ttm.financial/m/news/1131810508?lang=en_US&edition=fundamental","pubTime":"2025-02-01 14:28","market":"us","language":"en","title":"Broadcom Could Be The Ultimate Beneficiary From The DeepSeek Selloff","url":"https://stock-news.laohu8.com/highlight/detail?id=1131810508","media":"seekingalpha","summary":"particularly on a semiconductor bellwether of the quality of Broadcom. Recall in my previous update that I indicated hyperscalers are increasingly looking to build their custom chips business, as they seek to hedge their exposure against Nvidia.And with DeepSeek’s breakthrough this week, the stage is set for Broadcom to possibly","content":"<html><head></head><body><h2 id=\"id_2683858561\">Summary</h2><ul style=\"\"><li><p>Broadcom Inc. recovered almost 5% yesterday, as dip buyers realized that the market might have been wrong in selling off AVGO.</p></li><li><p>Broadcom is well poised to benefit from increased focus on custom AI compute as big tech shifts more into inference.</p></li><li><p>DeepSeek&#39;s incredible achievements in lowering the hurdle for cost-efficient AI models could drive share gains for Broadcom.</p></li><li><p>Meta highlighted that it will invest more in its custom MTIA chips for inference before broadening to training workloads.</p></li><li><p>I argue why AVGO stock could be the ultimate beneficiary as hyperscalers tweak their plans to focus on more cost-effective custom AI chips.</p></li><li><p>I am JR research, an opportunistic investor who identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&amp;P 500. I run the investing group Ultimate Growth Investing.</p></li></ul><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/ba8f6f5ea07cc4fd8025f75fe7308326\" alt=\"Broadcom offices in Silicon Valley\" title=\"Broadcom offices in Silicon Valley\" tg-width=\"750\" tg-height=\"500\"/><span>Broadcom offices in Silicon Valley</span></p><p></p><p>What a week for semiconductor investors, as DeepSeek (DEEPSEEK) threatened to send us “into the unknown,” even though the models that it unveiled have already been in the “market” since Christmas. American AI companies and chipmakers probably tried to play it “cool” as there wasn’t a lot of hustle and bustle going on about DeepSeek until the record one-day swing in Nvidia (NVDA) stock this Monday.</p><p>Questions about the implications of DeepSeek’s incredible progress through its open weight release (not truly open source) were flagged by Stratechery’s Ben Thompson on January 21. They were already in in-depth discussion in the AI world, as Tesla’s (TSLA) former AI director Andrej Karpathy alluded to, while Nvidia’s senior research manager Jim Fan also pointed to in his posts.</p><p>Of course, we all know what took place just before January 21, as the world likely was too focused on President Trump’s inauguration and his first “100 hours.” The “avalanche” of activities included a media blitz and the signing of a deluge of executive orders, as the Trump administration attempts to shake up the old order (left by Biden). He was modeling new ones to fulfill his campaign promises (while not having to worry about reelection), as Trump seeks to “Make America (truly) Great Again” on his second and final term.</p><p>As for <strong>Broadcom Inc.</strong> (NASDAQ:AVGO), I believe the opportunity couldn’t have come at a more appropriate moment. While it certainly also felt the knee-jerk reaction on Monday, the stock gained 4.5% during Thursday&#39;s session as I write this update, and it has recovered 10% from its lows this week. However, amid the confusion in the market caused by DeepSeek’s revelations, I believe investors are right to be cautious, but there’s no need to “freak out” still…particularly on a semiconductor bellwether of the quality of Broadcom. Recall in my previous update that I indicated hyperscalers are increasingly looking to build their custom chips business, as they seek to hedge their exposure against Nvidia.</p><p>And with DeepSeek’s breakthrough this week, the stage is set for Broadcom to possibly win even more business from big tech. Why? Now remember that Broadcom has a well diversified portfolio that spans a range of semiconductor solutions and also software. However, its AI portfolio has gained even more credence, particularly in the networking and custom AI chips opportunities.</p><p>And these custom chips are likely going to play an increasingly pivotal role as AI scaling progresses from pretraining to test time compute. Hence, inference will likely see a sharper growth inflection in spending on AI compute. That thesis has been corroborated by one of Broadcom’s main customers, and you probably know who, as this customer just released its earnings on Wednesday evening: Meta (META). Let’s hear it from Meta CFO Susan Li at her company’s earnings call:</p><blockquote><p>Finally, we’re pursuing cost efficiencies by deploying our custom MTIA silicon in areas where we can achieve a lower cost of compute by optimizing the chip to our unique workloads. In 2024 we started deploying MTIA to our ranking and recommendation inference workloads for ads and organic content. We expect to further ramp adoption of MTIA for these use cases throughout 2025 before extending our custom silicon efforts to training workloads for ranking and recommendations next year. - (Meta Q4FY2024 earnings call.)</p></blockquote><p>Did you manage to catch “custom MTIA silicon in areas where we can achieve a lower cost of compute?” While MTIA certainly isn’t new, I believe the war rooms set up by Meta this week has likely jolted the company into action. It seeks to regain traction with enterprise customers and application developers who might be (or considering) migrating to DeepSeek’s model, while eschewing Meta’s large language models, or LLMs. Unless you have not been reading up about DeepSeek, we are likely all aware that the China-based AI firm has scored top accolades for its ability to achieve significant improvements in cost efficiencies through its algo innovation. It has impressed the AI community so much that requests to use DeepSeek’s models have gained traction, such as even Microsoft (MSFT) has decided to host it in Azure.</p><p>Therefore, while Meta and its LLM peers will no doubt seek to build even more AI compute on the training front, MTIA will likely feature heavily in its upgraded CapEx outlook of up to $65B this year. Meta isn’t shying away as it underscores its intention to “further ramp adoption of MTIA,” and even alluded to using its custom silicon for training workloads as well.</p><p>Therefore, that brings us back to Broadcom’s AI revenue SAM outlook of between $60B and $90B, with a midpoint of $75B. I believe the market is likely seeing a higher potential of Broadcom moving closer to the top end of its guidance range. This could drive even more upgrades, as the company has already pointed to “two (new) undisclosed customers” in December, with OpenAI potentially being one of them.</p><p>An October report suggesting that OpenAI has been working on such a custom AI chip with Broadcom corroborates the view that I’ve presented. While Nvidia might continue to feature heavily in OpenAI’s highly ambitious $500B Stargate partnership venture, I believe the upside bias of including more of AVGO can no longer be understated. This is even though the company has yet to be included in the list of main technology partners, as indicated in OpenAI’s press release. However, if you read its press release carefully, the company indicated that “Arm, Microsoft, Nvidia, Oracle, and OpenAI are the key initial technology partners.” Incidentally, the key word here is none other than “initial.” Will Broadcom feature? I think the market’s positive reaction based on today’s surge likely sees AVGO playing not just a key role in Meta’s upgraded CapEx spending, but also the potential opening with OpenAI. This might not have been fully contemplated into Broadcom’s prognosis when it first presented its game plan in December last year.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/6260289227dc3ef584142d7052c8263b\" alt=\"Broadcom estimates\" title=\"Broadcom estimates\" tg-width=\"1280\" tg-height=\"768\"/><span>Broadcom estimates</span></p><p></p><p>Now, I don’t think Broadcom will change or upgrade its SAM opportunity anytime soon, although I believe it does clarify the company’s revenue trajectory better past FY2025. After accounting for VMware’s acquisition, AVGO’s revenue growth rates should normalize through FY2026, even though it’s still markedly above the five-year average of 12.5%.</p><p>I think uncertainties pertaining to the near term growth impact from Meta and OpenAI could persist, although Meta has made it clear that the inference ramp up is for 2025, which should benefit Broadcom. Hence, I believe the market is likely betting that CEO Hock Tan and his team could telegraph a clearer outlook toward achieving the upper boundary of Broadcom’s updated outlook. There is a possibility of an even more optimistic guidance if we can have better clarity into Stargate’s long-term plans. However, I think that remains a growth optionality for now. The developments are still too nascent for us to consider the accretion, particularly as the venture has yet to list AVGO as one of the main tech partners.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/328b89be4e5a3157ac41991b41988090\" alt=\"AVGO price chart (weekly, medium-term, adjusted for dividends)\" title=\"AVGO price chart (weekly, medium-term, adjusted for dividends)\" tg-width=\"1280\" tg-height=\"787\"/><span>AVGO price chart (weekly, medium-term, adjusted for dividends)</span></p><p></p><p>While the DeepSeek fallout did see AVGO take a tumble this week, I’ve also assessed a possible bullish reversal signal while writing this update, auguring well for buying the dips aggressively. AVGO has already dropped more than 20% from its December highs through its lows this week, placing the stock briefly in bear market territory, although dip buyers have capitalized.</p><p>I don&#39;t expect hyperscalers to pull back from their plans of investing more aggressively into custom AI compute. They probably might even allocate more spending to Broadcom’s AI chips, as they seek to lower their costs in their bid to improve their cost efficiencies further. Moreover, Broadcom’s well diversified portfolio should help to mitigate the uncertainties from DeepSeek, and help investors to lower their volatility risks as compared to the higher AI revenue concentration in Nvidia’s business segments.</p><p>AVGO’s forward EBITDA multiple of 26.6x is in line with Nvidia’s 26.4x metric. So, the market has clearly upgraded their outlook on Broadcom’s prospects, likely seeing the semiconductor leader as a credible contender to stake its claim as the second horse in the race against Nvidia’s stranglehold on merchant AI chips. Despite that, AVGO’s PEG ratio of 1.5 suggests the stock isn’t overvalued when we juxtapose it against its tech sector peer&#39;s median of 1.81 (17% discount). Therefore, I believe it is reasonable for me to maintain my optimism in the stock, notwithstanding the slew of uncertainties linked to DeepSeek’s morass.</p><p>Investors who feared the worst and took their positions off on Monday are likely regretting the move now, as data center operators have shown little inclination to lower their penchant for AI compute. Instead, it has likely strengthened their resolve to find more opportunities to level up their efficiencies across the value chain, and Broadcom offers a tremendous opportunity to do so. Coupled with its relatively attractive valuation, I see the potential bullish reversal in AVGO as offering investors another timely opportunity to gain more exposure to a high-quality semiconductor leader.</p><p>Rating: Maintain Buy.</p></body></html>","source":"lsy1728464409321","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Broadcom Could Be The Ultimate Beneficiary From The DeepSeek Selloff</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBroadcom Could Be The Ultimate Beneficiary From The DeepSeek Selloff\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-02-01 14:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4753835-broadcom-could-be-ultimate-beneficiary-from-deepseek-selloff><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryBroadcom Inc. recovered almost 5% yesterday, as dip buyers realized that the market might have been wrong in selling off AVGO.Broadcom is well poised to benefit from increased focus on custom ...</p>\n\n<a href=\"https://seekingalpha.com/article/4753835-broadcom-could-be-ultimate-beneficiary-from-deepseek-selloff\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AVGO":"博通"},"source_url":"https://seekingalpha.com/article/4753835-broadcom-could-be-ultimate-beneficiary-from-deepseek-selloff","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1131810508","content_text":"SummaryBroadcom Inc. recovered almost 5% yesterday, as dip buyers realized that the market might have been wrong in selling off AVGO.Broadcom is well poised to benefit from increased focus on custom AI compute as big tech shifts more into inference.DeepSeek's incredible achievements in lowering the hurdle for cost-efficient AI models could drive share gains for Broadcom.Meta highlighted that it will invest more in its custom MTIA chips for inference before broadening to training workloads.I argue why AVGO stock could be the ultimate beneficiary as hyperscalers tweak their plans to focus on more cost-effective custom AI chips.I am JR research, an opportunistic investor who identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. I run the investing group Ultimate Growth Investing.Broadcom offices in Silicon ValleyWhat a week for semiconductor investors, as DeepSeek (DEEPSEEK) threatened to send us “into the unknown,” even though the models that it unveiled have already been in the “market” since Christmas. American AI companies and chipmakers probably tried to play it “cool” as there wasn’t a lot of hustle and bustle going on about DeepSeek until the record one-day swing in Nvidia (NVDA) stock this Monday.Questions about the implications of DeepSeek’s incredible progress through its open weight release (not truly open source) were flagged by Stratechery’s Ben Thompson on January 21. They were already in in-depth discussion in the AI world, as Tesla’s (TSLA) former AI director Andrej Karpathy alluded to, while Nvidia’s senior research manager Jim Fan also pointed to in his posts.Of course, we all know what took place just before January 21, as the world likely was too focused on President Trump’s inauguration and his first “100 hours.” The “avalanche” of activities included a media blitz and the signing of a deluge of executive orders, as the Trump administration attempts to shake up the old order (left by Biden). He was modeling new ones to fulfill his campaign promises (while not having to worry about reelection), as Trump seeks to “Make America (truly) Great Again” on his second and final term.As for Broadcom Inc. (NASDAQ:AVGO), I believe the opportunity couldn’t have come at a more appropriate moment. While it certainly also felt the knee-jerk reaction on Monday, the stock gained 4.5% during Thursday's session as I write this update, and it has recovered 10% from its lows this week. However, amid the confusion in the market caused by DeepSeek’s revelations, I believe investors are right to be cautious, but there’s no need to “freak out” still…particularly on a semiconductor bellwether of the quality of Broadcom. Recall in my previous update that I indicated hyperscalers are increasingly looking to build their custom chips business, as they seek to hedge their exposure against Nvidia.And with DeepSeek’s breakthrough this week, the stage is set for Broadcom to possibly win even more business from big tech. Why? Now remember that Broadcom has a well diversified portfolio that spans a range of semiconductor solutions and also software. However, its AI portfolio has gained even more credence, particularly in the networking and custom AI chips opportunities.And these custom chips are likely going to play an increasingly pivotal role as AI scaling progresses from pretraining to test time compute. Hence, inference will likely see a sharper growth inflection in spending on AI compute. That thesis has been corroborated by one of Broadcom’s main customers, and you probably know who, as this customer just released its earnings on Wednesday evening: Meta (META). Let’s hear it from Meta CFO Susan Li at her company’s earnings call:Finally, we’re pursuing cost efficiencies by deploying our custom MTIA silicon in areas where we can achieve a lower cost of compute by optimizing the chip to our unique workloads. In 2024 we started deploying MTIA to our ranking and recommendation inference workloads for ads and organic content. We expect to further ramp adoption of MTIA for these use cases throughout 2025 before extending our custom silicon efforts to training workloads for ranking and recommendations next year. - (Meta Q4FY2024 earnings call.)Did you manage to catch “custom MTIA silicon in areas where we can achieve a lower cost of compute?” While MTIA certainly isn’t new, I believe the war rooms set up by Meta this week has likely jolted the company into action. It seeks to regain traction with enterprise customers and application developers who might be (or considering) migrating to DeepSeek’s model, while eschewing Meta’s large language models, or LLMs. Unless you have not been reading up about DeepSeek, we are likely all aware that the China-based AI firm has scored top accolades for its ability to achieve significant improvements in cost efficiencies through its algo innovation. It has impressed the AI community so much that requests to use DeepSeek’s models have gained traction, such as even Microsoft (MSFT) has decided to host it in Azure.Therefore, while Meta and its LLM peers will no doubt seek to build even more AI compute on the training front, MTIA will likely feature heavily in its upgraded CapEx outlook of up to $65B this year. Meta isn’t shying away as it underscores its intention to “further ramp adoption of MTIA,” and even alluded to using its custom silicon for training workloads as well.Therefore, that brings us back to Broadcom’s AI revenue SAM outlook of between $60B and $90B, with a midpoint of $75B. I believe the market is likely seeing a higher potential of Broadcom moving closer to the top end of its guidance range. This could drive even more upgrades, as the company has already pointed to “two (new) undisclosed customers” in December, with OpenAI potentially being one of them.An October report suggesting that OpenAI has been working on such a custom AI chip with Broadcom corroborates the view that I’ve presented. While Nvidia might continue to feature heavily in OpenAI’s highly ambitious $500B Stargate partnership venture, I believe the upside bias of including more of AVGO can no longer be understated. This is even though the company has yet to be included in the list of main technology partners, as indicated in OpenAI’s press release. However, if you read its press release carefully, the company indicated that “Arm, Microsoft, Nvidia, Oracle, and OpenAI are the key initial technology partners.” Incidentally, the key word here is none other than “initial.” Will Broadcom feature? I think the market’s positive reaction based on today’s surge likely sees AVGO playing not just a key role in Meta’s upgraded CapEx spending, but also the potential opening with OpenAI. This might not have been fully contemplated into Broadcom’s prognosis when it first presented its game plan in December last year.Broadcom estimatesNow, I don’t think Broadcom will change or upgrade its SAM opportunity anytime soon, although I believe it does clarify the company’s revenue trajectory better past FY2025. After accounting for VMware’s acquisition, AVGO’s revenue growth rates should normalize through FY2026, even though it’s still markedly above the five-year average of 12.5%.I think uncertainties pertaining to the near term growth impact from Meta and OpenAI could persist, although Meta has made it clear that the inference ramp up is for 2025, which should benefit Broadcom. Hence, I believe the market is likely betting that CEO Hock Tan and his team could telegraph a clearer outlook toward achieving the upper boundary of Broadcom’s updated outlook. There is a possibility of an even more optimistic guidance if we can have better clarity into Stargate’s long-term plans. However, I think that remains a growth optionality for now. The developments are still too nascent for us to consider the accretion, particularly as the venture has yet to list AVGO as one of the main tech partners.AVGO price chart (weekly, medium-term, adjusted for dividends)While the DeepSeek fallout did see AVGO take a tumble this week, I’ve also assessed a possible bullish reversal signal while writing this update, auguring well for buying the dips aggressively. AVGO has already dropped more than 20% from its December highs through its lows this week, placing the stock briefly in bear market territory, although dip buyers have capitalized.I don't expect hyperscalers to pull back from their plans of investing more aggressively into custom AI compute. They probably might even allocate more spending to Broadcom’s AI chips, as they seek to lower their costs in their bid to improve their cost efficiencies further. Moreover, Broadcom’s well diversified portfolio should help to mitigate the uncertainties from DeepSeek, and help investors to lower their volatility risks as compared to the higher AI revenue concentration in Nvidia’s business segments.AVGO’s forward EBITDA multiple of 26.6x is in line with Nvidia’s 26.4x metric. So, the market has clearly upgraded their outlook on Broadcom’s prospects, likely seeing the semiconductor leader as a credible contender to stake its claim as the second horse in the race against Nvidia’s stranglehold on merchant AI chips. Despite that, AVGO’s PEG ratio of 1.5 suggests the stock isn’t overvalued when we juxtapose it against its tech sector peer's median of 1.81 (17% discount). Therefore, I believe it is reasonable for me to maintain my optimism in the stock, notwithstanding the slew of uncertainties linked to DeepSeek’s morass.Investors who feared the worst and took their positions off on Monday are likely regretting the move now, as data center operators have shown little inclination to lower their penchant for AI compute. Instead, it has likely strengthened their resolve to find more opportunities to level up their efficiencies across the value chain, and Broadcom offers a tremendous opportunity to do so. Coupled with its relatively attractive valuation, I see the potential bullish reversal in AVGO as offering investors another timely opportunity to gain more exposure to a high-quality semiconductor leader.Rating: Maintain Buy.","news_type":1,"symbols_score_info":{"AVGO":1.1}},"isVote":1,"tweetType":1,"viewCount":837,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":398837198942328,"gmtCreate":1738397481083,"gmtModify":1738397483415,"author":{"id":"4201061858351912","authorId":"4201061858351912","name":"Widraw","avatar":"https://community-static.tradeup.com/news/dfead61c8f4e8ef924f983b493e29683","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4201061858351912","idStr":"4201061858351912"},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/NVDA\">$NVIDIA(NVDA)$&nbsp;</a>&nbsp;","listText":"<a href=\"https://ttm.financial/S/NVDA\">$NVIDIA(NVDA)$&nbsp;</a>&nbsp;","text":"$NVIDIA(NVDA)$","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/398837198942328","repostId":"1131810508","repostType":2,"repost":{"id":"1131810508","kind":"news","pubTimestamp":1738391318,"share":"https://ttm.financial/m/news/1131810508?lang=en_US&edition=fundamental","pubTime":"2025-02-01 14:28","market":"us","language":"en","title":"Broadcom Could Be The Ultimate Beneficiary From The DeepSeek Selloff","url":"https://stock-news.laohu8.com/highlight/detail?id=1131810508","media":"seekingalpha","summary":"particularly on a semiconductor bellwether of the quality of Broadcom. Recall in my previous update that I indicated hyperscalers are increasingly looking to build their custom chips business, as they seek to hedge their exposure against Nvidia.And with DeepSeek’s breakthrough this week, the stage is set for Broadcom to possibly","content":"<html><head></head><body><h2 id=\"id_2683858561\">Summary</h2><ul style=\"\"><li><p>Broadcom Inc. recovered almost 5% yesterday, as dip buyers realized that the market might have been wrong in selling off AVGO.</p></li><li><p>Broadcom is well poised to benefit from increased focus on custom AI compute as big tech shifts more into inference.</p></li><li><p>DeepSeek&#39;s incredible achievements in lowering the hurdle for cost-efficient AI models could drive share gains for Broadcom.</p></li><li><p>Meta highlighted that it will invest more in its custom MTIA chips for inference before broadening to training workloads.</p></li><li><p>I argue why AVGO stock could be the ultimate beneficiary as hyperscalers tweak their plans to focus on more cost-effective custom AI chips.</p></li><li><p>I am JR research, an opportunistic investor who identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&amp;P 500. I run the investing group Ultimate Growth Investing.</p></li></ul><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/ba8f6f5ea07cc4fd8025f75fe7308326\" alt=\"Broadcom offices in Silicon Valley\" title=\"Broadcom offices in Silicon Valley\" tg-width=\"750\" tg-height=\"500\"/><span>Broadcom offices in Silicon Valley</span></p><p></p><p>What a week for semiconductor investors, as DeepSeek (DEEPSEEK) threatened to send us “into the unknown,” even though the models that it unveiled have already been in the “market” since Christmas. American AI companies and chipmakers probably tried to play it “cool” as there wasn’t a lot of hustle and bustle going on about DeepSeek until the record one-day swing in Nvidia (NVDA) stock this Monday.</p><p>Questions about the implications of DeepSeek’s incredible progress through its open weight release (not truly open source) were flagged by Stratechery’s Ben Thompson on January 21. They were already in in-depth discussion in the AI world, as Tesla’s (TSLA) former AI director Andrej Karpathy alluded to, while Nvidia’s senior research manager Jim Fan also pointed to in his posts.</p><p>Of course, we all know what took place just before January 21, as the world likely was too focused on President Trump’s inauguration and his first “100 hours.” The “avalanche” of activities included a media blitz and the signing of a deluge of executive orders, as the Trump administration attempts to shake up the old order (left by Biden). He was modeling new ones to fulfill his campaign promises (while not having to worry about reelection), as Trump seeks to “Make America (truly) Great Again” on his second and final term.</p><p>As for <strong>Broadcom Inc.</strong> (NASDAQ:AVGO), I believe the opportunity couldn’t have come at a more appropriate moment. While it certainly also felt the knee-jerk reaction on Monday, the stock gained 4.5% during Thursday&#39;s session as I write this update, and it has recovered 10% from its lows this week. However, amid the confusion in the market caused by DeepSeek’s revelations, I believe investors are right to be cautious, but there’s no need to “freak out” still…particularly on a semiconductor bellwether of the quality of Broadcom. Recall in my previous update that I indicated hyperscalers are increasingly looking to build their custom chips business, as they seek to hedge their exposure against Nvidia.</p><p>And with DeepSeek’s breakthrough this week, the stage is set for Broadcom to possibly win even more business from big tech. Why? Now remember that Broadcom has a well diversified portfolio that spans a range of semiconductor solutions and also software. However, its AI portfolio has gained even more credence, particularly in the networking and custom AI chips opportunities.</p><p>And these custom chips are likely going to play an increasingly pivotal role as AI scaling progresses from pretraining to test time compute. Hence, inference will likely see a sharper growth inflection in spending on AI compute. That thesis has been corroborated by one of Broadcom’s main customers, and you probably know who, as this customer just released its earnings on Wednesday evening: Meta (META). Let’s hear it from Meta CFO Susan Li at her company’s earnings call:</p><blockquote><p>Finally, we’re pursuing cost efficiencies by deploying our custom MTIA silicon in areas where we can achieve a lower cost of compute by optimizing the chip to our unique workloads. In 2024 we started deploying MTIA to our ranking and recommendation inference workloads for ads and organic content. We expect to further ramp adoption of MTIA for these use cases throughout 2025 before extending our custom silicon efforts to training workloads for ranking and recommendations next year. - (Meta Q4FY2024 earnings call.)</p></blockquote><p>Did you manage to catch “custom MTIA silicon in areas where we can achieve a lower cost of compute?” While MTIA certainly isn’t new, I believe the war rooms set up by Meta this week has likely jolted the company into action. It seeks to regain traction with enterprise customers and application developers who might be (or considering) migrating to DeepSeek’s model, while eschewing Meta’s large language models, or LLMs. Unless you have not been reading up about DeepSeek, we are likely all aware that the China-based AI firm has scored top accolades for its ability to achieve significant improvements in cost efficiencies through its algo innovation. It has impressed the AI community so much that requests to use DeepSeek’s models have gained traction, such as even Microsoft (MSFT) has decided to host it in Azure.</p><p>Therefore, while Meta and its LLM peers will no doubt seek to build even more AI compute on the training front, MTIA will likely feature heavily in its upgraded CapEx outlook of up to $65B this year. Meta isn’t shying away as it underscores its intention to “further ramp adoption of MTIA,” and even alluded to using its custom silicon for training workloads as well.</p><p>Therefore, that brings us back to Broadcom’s AI revenue SAM outlook of between $60B and $90B, with a midpoint of $75B. I believe the market is likely seeing a higher potential of Broadcom moving closer to the top end of its guidance range. This could drive even more upgrades, as the company has already pointed to “two (new) undisclosed customers” in December, with OpenAI potentially being one of them.</p><p>An October report suggesting that OpenAI has been working on such a custom AI chip with Broadcom corroborates the view that I’ve presented. While Nvidia might continue to feature heavily in OpenAI’s highly ambitious $500B Stargate partnership venture, I believe the upside bias of including more of AVGO can no longer be understated. This is even though the company has yet to be included in the list of main technology partners, as indicated in OpenAI’s press release. However, if you read its press release carefully, the company indicated that “Arm, Microsoft, Nvidia, Oracle, and OpenAI are the key initial technology partners.” Incidentally, the key word here is none other than “initial.” Will Broadcom feature? I think the market’s positive reaction based on today’s surge likely sees AVGO playing not just a key role in Meta’s upgraded CapEx spending, but also the potential opening with OpenAI. This might not have been fully contemplated into Broadcom’s prognosis when it first presented its game plan in December last year.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/6260289227dc3ef584142d7052c8263b\" alt=\"Broadcom estimates\" title=\"Broadcom estimates\" tg-width=\"1280\" tg-height=\"768\"/><span>Broadcom estimates</span></p><p></p><p>Now, I don’t think Broadcom will change or upgrade its SAM opportunity anytime soon, although I believe it does clarify the company’s revenue trajectory better past FY2025. After accounting for VMware’s acquisition, AVGO’s revenue growth rates should normalize through FY2026, even though it’s still markedly above the five-year average of 12.5%.</p><p>I think uncertainties pertaining to the near term growth impact from Meta and OpenAI could persist, although Meta has made it clear that the inference ramp up is for 2025, which should benefit Broadcom. Hence, I believe the market is likely betting that CEO Hock Tan and his team could telegraph a clearer outlook toward achieving the upper boundary of Broadcom’s updated outlook. There is a possibility of an even more optimistic guidance if we can have better clarity into Stargate’s long-term plans. However, I think that remains a growth optionality for now. The developments are still too nascent for us to consider the accretion, particularly as the venture has yet to list AVGO as one of the main tech partners.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/328b89be4e5a3157ac41991b41988090\" alt=\"AVGO price chart (weekly, medium-term, adjusted for dividends)\" title=\"AVGO price chart (weekly, medium-term, adjusted for dividends)\" tg-width=\"1280\" tg-height=\"787\"/><span>AVGO price chart (weekly, medium-term, adjusted for dividends)</span></p><p></p><p>While the DeepSeek fallout did see AVGO take a tumble this week, I’ve also assessed a possible bullish reversal signal while writing this update, auguring well for buying the dips aggressively. AVGO has already dropped more than 20% from its December highs through its lows this week, placing the stock briefly in bear market territory, although dip buyers have capitalized.</p><p>I don&#39;t expect hyperscalers to pull back from their plans of investing more aggressively into custom AI compute. They probably might even allocate more spending to Broadcom’s AI chips, as they seek to lower their costs in their bid to improve their cost efficiencies further. Moreover, Broadcom’s well diversified portfolio should help to mitigate the uncertainties from DeepSeek, and help investors to lower their volatility risks as compared to the higher AI revenue concentration in Nvidia’s business segments.</p><p>AVGO’s forward EBITDA multiple of 26.6x is in line with Nvidia’s 26.4x metric. So, the market has clearly upgraded their outlook on Broadcom’s prospects, likely seeing the semiconductor leader as a credible contender to stake its claim as the second horse in the race against Nvidia’s stranglehold on merchant AI chips. Despite that, AVGO’s PEG ratio of 1.5 suggests the stock isn’t overvalued when we juxtapose it against its tech sector peer&#39;s median of 1.81 (17% discount). Therefore, I believe it is reasonable for me to maintain my optimism in the stock, notwithstanding the slew of uncertainties linked to DeepSeek’s morass.</p><p>Investors who feared the worst and took their positions off on Monday are likely regretting the move now, as data center operators have shown little inclination to lower their penchant for AI compute. Instead, it has likely strengthened their resolve to find more opportunities to level up their efficiencies across the value chain, and Broadcom offers a tremendous opportunity to do so. Coupled with its relatively attractive valuation, I see the potential bullish reversal in AVGO as offering investors another timely opportunity to gain more exposure to a high-quality semiconductor leader.</p><p>Rating: Maintain Buy.</p></body></html>","source":"lsy1728464409321","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Broadcom Could Be The Ultimate Beneficiary From The DeepSeek Selloff</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBroadcom Could Be The Ultimate Beneficiary From The DeepSeek Selloff\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-02-01 14:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4753835-broadcom-could-be-ultimate-beneficiary-from-deepseek-selloff><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryBroadcom Inc. recovered almost 5% yesterday, as dip buyers realized that the market might have been wrong in selling off AVGO.Broadcom is well poised to benefit from increased focus on custom ...</p>\n\n<a href=\"https://seekingalpha.com/article/4753835-broadcom-could-be-ultimate-beneficiary-from-deepseek-selloff\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AVGO":"博通"},"source_url":"https://seekingalpha.com/article/4753835-broadcom-could-be-ultimate-beneficiary-from-deepseek-selloff","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1131810508","content_text":"SummaryBroadcom Inc. recovered almost 5% yesterday, as dip buyers realized that the market might have been wrong in selling off AVGO.Broadcom is well poised to benefit from increased focus on custom AI compute as big tech shifts more into inference.DeepSeek's incredible achievements in lowering the hurdle for cost-efficient AI models could drive share gains for Broadcom.Meta highlighted that it will invest more in its custom MTIA chips for inference before broadening to training workloads.I argue why AVGO stock could be the ultimate beneficiary as hyperscalers tweak their plans to focus on more cost-effective custom AI chips.I am JR research, an opportunistic investor who identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. I run the investing group Ultimate Growth Investing.Broadcom offices in Silicon ValleyWhat a week for semiconductor investors, as DeepSeek (DEEPSEEK) threatened to send us “into the unknown,” even though the models that it unveiled have already been in the “market” since Christmas. American AI companies and chipmakers probably tried to play it “cool” as there wasn’t a lot of hustle and bustle going on about DeepSeek until the record one-day swing in Nvidia (NVDA) stock this Monday.Questions about the implications of DeepSeek’s incredible progress through its open weight release (not truly open source) were flagged by Stratechery’s Ben Thompson on January 21. They were already in in-depth discussion in the AI world, as Tesla’s (TSLA) former AI director Andrej Karpathy alluded to, while Nvidia’s senior research manager Jim Fan also pointed to in his posts.Of course, we all know what took place just before January 21, as the world likely was too focused on President Trump’s inauguration and his first “100 hours.” The “avalanche” of activities included a media blitz and the signing of a deluge of executive orders, as the Trump administration attempts to shake up the old order (left by Biden). He was modeling new ones to fulfill his campaign promises (while not having to worry about reelection), as Trump seeks to “Make America (truly) Great Again” on his second and final term.As for Broadcom Inc. (NASDAQ:AVGO), I believe the opportunity couldn’t have come at a more appropriate moment. While it certainly also felt the knee-jerk reaction on Monday, the stock gained 4.5% during Thursday's session as I write this update, and it has recovered 10% from its lows this week. However, amid the confusion in the market caused by DeepSeek’s revelations, I believe investors are right to be cautious, but there’s no need to “freak out” still…particularly on a semiconductor bellwether of the quality of Broadcom. Recall in my previous update that I indicated hyperscalers are increasingly looking to build their custom chips business, as they seek to hedge their exposure against Nvidia.And with DeepSeek’s breakthrough this week, the stage is set for Broadcom to possibly win even more business from big tech. Why? Now remember that Broadcom has a well diversified portfolio that spans a range of semiconductor solutions and also software. However, its AI portfolio has gained even more credence, particularly in the networking and custom AI chips opportunities.And these custom chips are likely going to play an increasingly pivotal role as AI scaling progresses from pretraining to test time compute. Hence, inference will likely see a sharper growth inflection in spending on AI compute. That thesis has been corroborated by one of Broadcom’s main customers, and you probably know who, as this customer just released its earnings on Wednesday evening: Meta (META). Let’s hear it from Meta CFO Susan Li at her company’s earnings call:Finally, we’re pursuing cost efficiencies by deploying our custom MTIA silicon in areas where we can achieve a lower cost of compute by optimizing the chip to our unique workloads. In 2024 we started deploying MTIA to our ranking and recommendation inference workloads for ads and organic content. We expect to further ramp adoption of MTIA for these use cases throughout 2025 before extending our custom silicon efforts to training workloads for ranking and recommendations next year. - (Meta Q4FY2024 earnings call.)Did you manage to catch “custom MTIA silicon in areas where we can achieve a lower cost of compute?” While MTIA certainly isn’t new, I believe the war rooms set up by Meta this week has likely jolted the company into action. It seeks to regain traction with enterprise customers and application developers who might be (or considering) migrating to DeepSeek’s model, while eschewing Meta’s large language models, or LLMs. Unless you have not been reading up about DeepSeek, we are likely all aware that the China-based AI firm has scored top accolades for its ability to achieve significant improvements in cost efficiencies through its algo innovation. It has impressed the AI community so much that requests to use DeepSeek’s models have gained traction, such as even Microsoft (MSFT) has decided to host it in Azure.Therefore, while Meta and its LLM peers will no doubt seek to build even more AI compute on the training front, MTIA will likely feature heavily in its upgraded CapEx outlook of up to $65B this year. Meta isn’t shying away as it underscores its intention to “further ramp adoption of MTIA,” and even alluded to using its custom silicon for training workloads as well.Therefore, that brings us back to Broadcom’s AI revenue SAM outlook of between $60B and $90B, with a midpoint of $75B. I believe the market is likely seeing a higher potential of Broadcom moving closer to the top end of its guidance range. This could drive even more upgrades, as the company has already pointed to “two (new) undisclosed customers” in December, with OpenAI potentially being one of them.An October report suggesting that OpenAI has been working on such a custom AI chip with Broadcom corroborates the view that I’ve presented. While Nvidia might continue to feature heavily in OpenAI’s highly ambitious $500B Stargate partnership venture, I believe the upside bias of including more of AVGO can no longer be understated. This is even though the company has yet to be included in the list of main technology partners, as indicated in OpenAI’s press release. However, if you read its press release carefully, the company indicated that “Arm, Microsoft, Nvidia, Oracle, and OpenAI are the key initial technology partners.” Incidentally, the key word here is none other than “initial.” Will Broadcom feature? I think the market’s positive reaction based on today’s surge likely sees AVGO playing not just a key role in Meta’s upgraded CapEx spending, but also the potential opening with OpenAI. This might not have been fully contemplated into Broadcom’s prognosis when it first presented its game plan in December last year.Broadcom estimatesNow, I don’t think Broadcom will change or upgrade its SAM opportunity anytime soon, although I believe it does clarify the company’s revenue trajectory better past FY2025. After accounting for VMware’s acquisition, AVGO’s revenue growth rates should normalize through FY2026, even though it’s still markedly above the five-year average of 12.5%.I think uncertainties pertaining to the near term growth impact from Meta and OpenAI could persist, although Meta has made it clear that the inference ramp up is for 2025, which should benefit Broadcom. Hence, I believe the market is likely betting that CEO Hock Tan and his team could telegraph a clearer outlook toward achieving the upper boundary of Broadcom’s updated outlook. There is a possibility of an even more optimistic guidance if we can have better clarity into Stargate’s long-term plans. However, I think that remains a growth optionality for now. The developments are still too nascent for us to consider the accretion, particularly as the venture has yet to list AVGO as one of the main tech partners.AVGO price chart (weekly, medium-term, adjusted for dividends)While the DeepSeek fallout did see AVGO take a tumble this week, I’ve also assessed a possible bullish reversal signal while writing this update, auguring well for buying the dips aggressively. AVGO has already dropped more than 20% from its December highs through its lows this week, placing the stock briefly in bear market territory, although dip buyers have capitalized.I don't expect hyperscalers to pull back from their plans of investing more aggressively into custom AI compute. They probably might even allocate more spending to Broadcom’s AI chips, as they seek to lower their costs in their bid to improve their cost efficiencies further. Moreover, Broadcom’s well diversified portfolio should help to mitigate the uncertainties from DeepSeek, and help investors to lower their volatility risks as compared to the higher AI revenue concentration in Nvidia’s business segments.AVGO’s forward EBITDA multiple of 26.6x is in line with Nvidia’s 26.4x metric. So, the market has clearly upgraded their outlook on Broadcom’s prospects, likely seeing the semiconductor leader as a credible contender to stake its claim as the second horse in the race against Nvidia’s stranglehold on merchant AI chips. Despite that, AVGO’s PEG ratio of 1.5 suggests the stock isn’t overvalued when we juxtapose it against its tech sector peer's median of 1.81 (17% discount). Therefore, I believe it is reasonable for me to maintain my optimism in the stock, notwithstanding the slew of uncertainties linked to DeepSeek’s morass.Investors who feared the worst and took their positions off on Monday are likely regretting the move now, as data center operators have shown little inclination to lower their penchant for AI compute. Instead, it has likely strengthened their resolve to find more opportunities to level up their efficiencies across the value chain, and Broadcom offers a tremendous opportunity to do so. Coupled with its relatively attractive valuation, I see the potential bullish reversal in AVGO as offering investors another timely opportunity to gain more exposure to a high-quality semiconductor leader.Rating: Maintain Buy.","news_type":1,"symbols_score_info":{"AVGO":1.1}},"isVote":1,"tweetType":1,"viewCount":1000,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":398837864870448,"gmtCreate":1738397460449,"gmtModify":1738397463601,"author":{"id":"4201061858351912","authorId":"4201061858351912","name":"Widraw","avatar":"https://community-static.tradeup.com/news/dfead61c8f4e8ef924f983b493e29683","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4201061858351912","idStr":"4201061858351912"},"themes":[],"htmlText":"approved my payment","listText":"approved my payment","text":"approved my payment","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/398837864870448","repostId":"1131810508","repostType":2,"repost":{"id":"1131810508","kind":"news","pubTimestamp":1738391318,"share":"https://ttm.financial/m/news/1131810508?lang=en_US&edition=fundamental","pubTime":"2025-02-01 14:28","market":"us","language":"en","title":"Broadcom Could Be The Ultimate Beneficiary From The DeepSeek Selloff","url":"https://stock-news.laohu8.com/highlight/detail?id=1131810508","media":"seekingalpha","summary":"particularly on a semiconductor bellwether of the quality of Broadcom. Recall in my previous update that I indicated hyperscalers are increasingly looking to build their custom chips business, as they seek to hedge their exposure against Nvidia.And with DeepSeek’s breakthrough this week, the stage is set for Broadcom to possibly","content":"<html><head></head><body><h2 id=\"id_2683858561\">Summary</h2><ul style=\"\"><li><p>Broadcom Inc. recovered almost 5% yesterday, as dip buyers realized that the market might have been wrong in selling off AVGO.</p></li><li><p>Broadcom is well poised to benefit from increased focus on custom AI compute as big tech shifts more into inference.</p></li><li><p>DeepSeek&#39;s incredible achievements in lowering the hurdle for cost-efficient AI models could drive share gains for Broadcom.</p></li><li><p>Meta highlighted that it will invest more in its custom MTIA chips for inference before broadening to training workloads.</p></li><li><p>I argue why AVGO stock could be the ultimate beneficiary as hyperscalers tweak their plans to focus on more cost-effective custom AI chips.</p></li><li><p>I am JR research, an opportunistic investor who identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&amp;P 500. I run the investing group Ultimate Growth Investing.</p></li></ul><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/ba8f6f5ea07cc4fd8025f75fe7308326\" alt=\"Broadcom offices in Silicon Valley\" title=\"Broadcom offices in Silicon Valley\" tg-width=\"750\" tg-height=\"500\"/><span>Broadcom offices in Silicon Valley</span></p><p></p><p>What a week for semiconductor investors, as DeepSeek (DEEPSEEK) threatened to send us “into the unknown,” even though the models that it unveiled have already been in the “market” since Christmas. American AI companies and chipmakers probably tried to play it “cool” as there wasn’t a lot of hustle and bustle going on about DeepSeek until the record one-day swing in Nvidia (NVDA) stock this Monday.</p><p>Questions about the implications of DeepSeek’s incredible progress through its open weight release (not truly open source) were flagged by Stratechery’s Ben Thompson on January 21. They were already in in-depth discussion in the AI world, as Tesla’s (TSLA) former AI director Andrej Karpathy alluded to, while Nvidia’s senior research manager Jim Fan also pointed to in his posts.</p><p>Of course, we all know what took place just before January 21, as the world likely was too focused on President Trump’s inauguration and his first “100 hours.” The “avalanche” of activities included a media blitz and the signing of a deluge of executive orders, as the Trump administration attempts to shake up the old order (left by Biden). He was modeling new ones to fulfill his campaign promises (while not having to worry about reelection), as Trump seeks to “Make America (truly) Great Again” on his second and final term.</p><p>As for <strong>Broadcom Inc.</strong> (NASDAQ:AVGO), I believe the opportunity couldn’t have come at a more appropriate moment. While it certainly also felt the knee-jerk reaction on Monday, the stock gained 4.5% during Thursday&#39;s session as I write this update, and it has recovered 10% from its lows this week. However, amid the confusion in the market caused by DeepSeek’s revelations, I believe investors are right to be cautious, but there’s no need to “freak out” still…particularly on a semiconductor bellwether of the quality of Broadcom. Recall in my previous update that I indicated hyperscalers are increasingly looking to build their custom chips business, as they seek to hedge their exposure against Nvidia.</p><p>And with DeepSeek’s breakthrough this week, the stage is set for Broadcom to possibly win even more business from big tech. Why? Now remember that Broadcom has a well diversified portfolio that spans a range of semiconductor solutions and also software. However, its AI portfolio has gained even more credence, particularly in the networking and custom AI chips opportunities.</p><p>And these custom chips are likely going to play an increasingly pivotal role as AI scaling progresses from pretraining to test time compute. Hence, inference will likely see a sharper growth inflection in spending on AI compute. That thesis has been corroborated by one of Broadcom’s main customers, and you probably know who, as this customer just released its earnings on Wednesday evening: Meta (META). Let’s hear it from Meta CFO Susan Li at her company’s earnings call:</p><blockquote><p>Finally, we’re pursuing cost efficiencies by deploying our custom MTIA silicon in areas where we can achieve a lower cost of compute by optimizing the chip to our unique workloads. In 2024 we started deploying MTIA to our ranking and recommendation inference workloads for ads and organic content. We expect to further ramp adoption of MTIA for these use cases throughout 2025 before extending our custom silicon efforts to training workloads for ranking and recommendations next year. - (Meta Q4FY2024 earnings call.)</p></blockquote><p>Did you manage to catch “custom MTIA silicon in areas where we can achieve a lower cost of compute?” While MTIA certainly isn’t new, I believe the war rooms set up by Meta this week has likely jolted the company into action. It seeks to regain traction with enterprise customers and application developers who might be (or considering) migrating to DeepSeek’s model, while eschewing Meta’s large language models, or LLMs. Unless you have not been reading up about DeepSeek, we are likely all aware that the China-based AI firm has scored top accolades for its ability to achieve significant improvements in cost efficiencies through its algo innovation. It has impressed the AI community so much that requests to use DeepSeek’s models have gained traction, such as even Microsoft (MSFT) has decided to host it in Azure.</p><p>Therefore, while Meta and its LLM peers will no doubt seek to build even more AI compute on the training front, MTIA will likely feature heavily in its upgraded CapEx outlook of up to $65B this year. Meta isn’t shying away as it underscores its intention to “further ramp adoption of MTIA,” and even alluded to using its custom silicon for training workloads as well.</p><p>Therefore, that brings us back to Broadcom’s AI revenue SAM outlook of between $60B and $90B, with a midpoint of $75B. I believe the market is likely seeing a higher potential of Broadcom moving closer to the top end of its guidance range. This could drive even more upgrades, as the company has already pointed to “two (new) undisclosed customers” in December, with OpenAI potentially being one of them.</p><p>An October report suggesting that OpenAI has been working on such a custom AI chip with Broadcom corroborates the view that I’ve presented. While Nvidia might continue to feature heavily in OpenAI’s highly ambitious $500B Stargate partnership venture, I believe the upside bias of including more of AVGO can no longer be understated. This is even though the company has yet to be included in the list of main technology partners, as indicated in OpenAI’s press release. However, if you read its press release carefully, the company indicated that “Arm, Microsoft, Nvidia, Oracle, and OpenAI are the key initial technology partners.” Incidentally, the key word here is none other than “initial.” Will Broadcom feature? I think the market’s positive reaction based on today’s surge likely sees AVGO playing not just a key role in Meta’s upgraded CapEx spending, but also the potential opening with OpenAI. This might not have been fully contemplated into Broadcom’s prognosis when it first presented its game plan in December last year.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/6260289227dc3ef584142d7052c8263b\" alt=\"Broadcom estimates\" title=\"Broadcom estimates\" tg-width=\"1280\" tg-height=\"768\"/><span>Broadcom estimates</span></p><p></p><p>Now, I don’t think Broadcom will change or upgrade its SAM opportunity anytime soon, although I believe it does clarify the company’s revenue trajectory better past FY2025. After accounting for VMware’s acquisition, AVGO’s revenue growth rates should normalize through FY2026, even though it’s still markedly above the five-year average of 12.5%.</p><p>I think uncertainties pertaining to the near term growth impact from Meta and OpenAI could persist, although Meta has made it clear that the inference ramp up is for 2025, which should benefit Broadcom. Hence, I believe the market is likely betting that CEO Hock Tan and his team could telegraph a clearer outlook toward achieving the upper boundary of Broadcom’s updated outlook. There is a possibility of an even more optimistic guidance if we can have better clarity into Stargate’s long-term plans. However, I think that remains a growth optionality for now. The developments are still too nascent for us to consider the accretion, particularly as the venture has yet to list AVGO as one of the main tech partners.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/328b89be4e5a3157ac41991b41988090\" alt=\"AVGO price chart (weekly, medium-term, adjusted for dividends)\" title=\"AVGO price chart (weekly, medium-term, adjusted for dividends)\" tg-width=\"1280\" tg-height=\"787\"/><span>AVGO price chart (weekly, medium-term, adjusted for dividends)</span></p><p></p><p>While the DeepSeek fallout did see AVGO take a tumble this week, I’ve also assessed a possible bullish reversal signal while writing this update, auguring well for buying the dips aggressively. AVGO has already dropped more than 20% from its December highs through its lows this week, placing the stock briefly in bear market territory, although dip buyers have capitalized.</p><p>I don&#39;t expect hyperscalers to pull back from their plans of investing more aggressively into custom AI compute. They probably might even allocate more spending to Broadcom’s AI chips, as they seek to lower their costs in their bid to improve their cost efficiencies further. Moreover, Broadcom’s well diversified portfolio should help to mitigate the uncertainties from DeepSeek, and help investors to lower their volatility risks as compared to the higher AI revenue concentration in Nvidia’s business segments.</p><p>AVGO’s forward EBITDA multiple of 26.6x is in line with Nvidia’s 26.4x metric. So, the market has clearly upgraded their outlook on Broadcom’s prospects, likely seeing the semiconductor leader as a credible contender to stake its claim as the second horse in the race against Nvidia’s stranglehold on merchant AI chips. Despite that, AVGO’s PEG ratio of 1.5 suggests the stock isn’t overvalued when we juxtapose it against its tech sector peer&#39;s median of 1.81 (17% discount). Therefore, I believe it is reasonable for me to maintain my optimism in the stock, notwithstanding the slew of uncertainties linked to DeepSeek’s morass.</p><p>Investors who feared the worst and took their positions off on Monday are likely regretting the move now, as data center operators have shown little inclination to lower their penchant for AI compute. Instead, it has likely strengthened their resolve to find more opportunities to level up their efficiencies across the value chain, and Broadcom offers a tremendous opportunity to do so. Coupled with its relatively attractive valuation, I see the potential bullish reversal in AVGO as offering investors another timely opportunity to gain more exposure to a high-quality semiconductor leader.</p><p>Rating: Maintain Buy.</p></body></html>","source":"lsy1728464409321","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Broadcom Could Be The Ultimate Beneficiary From The DeepSeek Selloff</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBroadcom Could Be The Ultimate Beneficiary From The DeepSeek Selloff\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-02-01 14:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4753835-broadcom-could-be-ultimate-beneficiary-from-deepseek-selloff><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryBroadcom Inc. recovered almost 5% yesterday, as dip buyers realized that the market might have been wrong in selling off AVGO.Broadcom is well poised to benefit from increased focus on custom ...</p>\n\n<a href=\"https://seekingalpha.com/article/4753835-broadcom-could-be-ultimate-beneficiary-from-deepseek-selloff\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AVGO":"博通"},"source_url":"https://seekingalpha.com/article/4753835-broadcom-could-be-ultimate-beneficiary-from-deepseek-selloff","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1131810508","content_text":"SummaryBroadcom Inc. recovered almost 5% yesterday, as dip buyers realized that the market might have been wrong in selling off AVGO.Broadcom is well poised to benefit from increased focus on custom AI compute as big tech shifts more into inference.DeepSeek's incredible achievements in lowering the hurdle for cost-efficient AI models could drive share gains for Broadcom.Meta highlighted that it will invest more in its custom MTIA chips for inference before broadening to training workloads.I argue why AVGO stock could be the ultimate beneficiary as hyperscalers tweak their plans to focus on more cost-effective custom AI chips.I am JR research, an opportunistic investor who identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. I run the investing group Ultimate Growth Investing.Broadcom offices in Silicon ValleyWhat a week for semiconductor investors, as DeepSeek (DEEPSEEK) threatened to send us “into the unknown,” even though the models that it unveiled have already been in the “market” since Christmas. American AI companies and chipmakers probably tried to play it “cool” as there wasn’t a lot of hustle and bustle going on about DeepSeek until the record one-day swing in Nvidia (NVDA) stock this Monday.Questions about the implications of DeepSeek’s incredible progress through its open weight release (not truly open source) were flagged by Stratechery’s Ben Thompson on January 21. They were already in in-depth discussion in the AI world, as Tesla’s (TSLA) former AI director Andrej Karpathy alluded to, while Nvidia’s senior research manager Jim Fan also pointed to in his posts.Of course, we all know what took place just before January 21, as the world likely was too focused on President Trump’s inauguration and his first “100 hours.” The “avalanche” of activities included a media blitz and the signing of a deluge of executive orders, as the Trump administration attempts to shake up the old order (left by Biden). He was modeling new ones to fulfill his campaign promises (while not having to worry about reelection), as Trump seeks to “Make America (truly) Great Again” on his second and final term.As for Broadcom Inc. (NASDAQ:AVGO), I believe the opportunity couldn’t have come at a more appropriate moment. While it certainly also felt the knee-jerk reaction on Monday, the stock gained 4.5% during Thursday's session as I write this update, and it has recovered 10% from its lows this week. However, amid the confusion in the market caused by DeepSeek’s revelations, I believe investors are right to be cautious, but there’s no need to “freak out” still…particularly on a semiconductor bellwether of the quality of Broadcom. Recall in my previous update that I indicated hyperscalers are increasingly looking to build their custom chips business, as they seek to hedge their exposure against Nvidia.And with DeepSeek’s breakthrough this week, the stage is set for Broadcom to possibly win even more business from big tech. Why? Now remember that Broadcom has a well diversified portfolio that spans a range of semiconductor solutions and also software. However, its AI portfolio has gained even more credence, particularly in the networking and custom AI chips opportunities.And these custom chips are likely going to play an increasingly pivotal role as AI scaling progresses from pretraining to test time compute. Hence, inference will likely see a sharper growth inflection in spending on AI compute. That thesis has been corroborated by one of Broadcom’s main customers, and you probably know who, as this customer just released its earnings on Wednesday evening: Meta (META). Let’s hear it from Meta CFO Susan Li at her company’s earnings call:Finally, we’re pursuing cost efficiencies by deploying our custom MTIA silicon in areas where we can achieve a lower cost of compute by optimizing the chip to our unique workloads. In 2024 we started deploying MTIA to our ranking and recommendation inference workloads for ads and organic content. We expect to further ramp adoption of MTIA for these use cases throughout 2025 before extending our custom silicon efforts to training workloads for ranking and recommendations next year. - (Meta Q4FY2024 earnings call.)Did you manage to catch “custom MTIA silicon in areas where we can achieve a lower cost of compute?” While MTIA certainly isn’t new, I believe the war rooms set up by Meta this week has likely jolted the company into action. It seeks to regain traction with enterprise customers and application developers who might be (or considering) migrating to DeepSeek’s model, while eschewing Meta’s large language models, or LLMs. Unless you have not been reading up about DeepSeek, we are likely all aware that the China-based AI firm has scored top accolades for its ability to achieve significant improvements in cost efficiencies through its algo innovation. It has impressed the AI community so much that requests to use DeepSeek’s models have gained traction, such as even Microsoft (MSFT) has decided to host it in Azure.Therefore, while Meta and its LLM peers will no doubt seek to build even more AI compute on the training front, MTIA will likely feature heavily in its upgraded CapEx outlook of up to $65B this year. Meta isn’t shying away as it underscores its intention to “further ramp adoption of MTIA,” and even alluded to using its custom silicon for training workloads as well.Therefore, that brings us back to Broadcom’s AI revenue SAM outlook of between $60B and $90B, with a midpoint of $75B. I believe the market is likely seeing a higher potential of Broadcom moving closer to the top end of its guidance range. This could drive even more upgrades, as the company has already pointed to “two (new) undisclosed customers” in December, with OpenAI potentially being one of them.An October report suggesting that OpenAI has been working on such a custom AI chip with Broadcom corroborates the view that I’ve presented. While Nvidia might continue to feature heavily in OpenAI’s highly ambitious $500B Stargate partnership venture, I believe the upside bias of including more of AVGO can no longer be understated. This is even though the company has yet to be included in the list of main technology partners, as indicated in OpenAI’s press release. However, if you read its press release carefully, the company indicated that “Arm, Microsoft, Nvidia, Oracle, and OpenAI are the key initial technology partners.” Incidentally, the key word here is none other than “initial.” Will Broadcom feature? I think the market’s positive reaction based on today’s surge likely sees AVGO playing not just a key role in Meta’s upgraded CapEx spending, but also the potential opening with OpenAI. This might not have been fully contemplated into Broadcom’s prognosis when it first presented its game plan in December last year.Broadcom estimatesNow, I don’t think Broadcom will change or upgrade its SAM opportunity anytime soon, although I believe it does clarify the company’s revenue trajectory better past FY2025. After accounting for VMware’s acquisition, AVGO’s revenue growth rates should normalize through FY2026, even though it’s still markedly above the five-year average of 12.5%.I think uncertainties pertaining to the near term growth impact from Meta and OpenAI could persist, although Meta has made it clear that the inference ramp up is for 2025, which should benefit Broadcom. Hence, I believe the market is likely betting that CEO Hock Tan and his team could telegraph a clearer outlook toward achieving the upper boundary of Broadcom’s updated outlook. There is a possibility of an even more optimistic guidance if we can have better clarity into Stargate’s long-term plans. However, I think that remains a growth optionality for now. The developments are still too nascent for us to consider the accretion, particularly as the venture has yet to list AVGO as one of the main tech partners.AVGO price chart (weekly, medium-term, adjusted for dividends)While the DeepSeek fallout did see AVGO take a tumble this week, I’ve also assessed a possible bullish reversal signal while writing this update, auguring well for buying the dips aggressively. AVGO has already dropped more than 20% from its December highs through its lows this week, placing the stock briefly in bear market territory, although dip buyers have capitalized.I don't expect hyperscalers to pull back from their plans of investing more aggressively into custom AI compute. They probably might even allocate more spending to Broadcom’s AI chips, as they seek to lower their costs in their bid to improve their cost efficiencies further. Moreover, Broadcom’s well diversified portfolio should help to mitigate the uncertainties from DeepSeek, and help investors to lower their volatility risks as compared to the higher AI revenue concentration in Nvidia’s business segments.AVGO’s forward EBITDA multiple of 26.6x is in line with Nvidia’s 26.4x metric. So, the market has clearly upgraded their outlook on Broadcom’s prospects, likely seeing the semiconductor leader as a credible contender to stake its claim as the second horse in the race against Nvidia’s stranglehold on merchant AI chips. Despite that, AVGO’s PEG ratio of 1.5 suggests the stock isn’t overvalued when we juxtapose it against its tech sector peer's median of 1.81 (17% discount). Therefore, I believe it is reasonable for me to maintain my optimism in the stock, notwithstanding the slew of uncertainties linked to DeepSeek’s morass.Investors who feared the worst and took their positions off on Monday are likely regretting the move now, as data center operators have shown little inclination to lower their penchant for AI compute. Instead, it has likely strengthened their resolve to find more opportunities to level up their efficiencies across the value chain, and Broadcom offers a tremendous opportunity to do so. Coupled with its relatively attractive valuation, I see the potential bullish reversal in AVGO as offering investors another timely opportunity to gain more exposure to a high-quality semiconductor leader.Rating: Maintain Buy.","news_type":1,"symbols_score_info":{"AVGO":1.1}},"isVote":1,"tweetType":1,"viewCount":880,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":398758564541008,"gmtCreate":1738394144135,"gmtModify":1738396955056,"author":{"id":"4201061858351912","authorId":"4201061858351912","name":"Widraw","avatar":"https://community-static.tradeup.com/news/dfead61c8f4e8ef924f983b493e29683","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4201061858351912","idStr":"4201061858351912"},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/NVDA\">$NVIDIA(NVDA)$&nbsp;</a> 10000//<a href=\"https://ttm.financial/U/4201061858351912\">@Widraw</a>:Great article, would you like to share it/nmorey174@gmail.com/alipay","listText":"<a href=\"https://ttm.financial/S/NVDA\">$NVIDIA(NVDA)$&nbsp;</a> 10000//<a href=\"https://ttm.financial/U/4201061858351912\">@Widraw</a>:Great article, would you like to share it/nmorey174@gmail.com/alipay","text":"$NVIDIA(NVDA)$ 10000//@Widraw:Great article, would you like to share it/nmorey174@gmail.com/alipay","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/398758564541008","repostId":"1118665035","repostType":2,"repost":{"id":"1118665035","kind":"news","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1737452731,"share":"https://ttm.financial/m/news/1118665035?lang=en_US&edition=fundamental","pubTime":"2025-01-21 17:45","market":"us","language":"en","title":"Google Q4 Earnings Preview: Capex in Focus as LLMs Power Search, Cloud","url":"https://stock-news.laohu8.com/highlight/detail?id=1118665035","media":"Tiger Newspress","summary":"According to data compiled by Bloomberg, analysts project around $96.61 billion in Q4 revenue and $2.12 in adjusted EPS, reflecting a 12% and 29% YoY increase, respectively.Alphabet is set to release ","content":"<html><head></head><body><blockquote><p>According to data compiled by Bloomberg, analysts project around $96.61 billion in Q4 revenue and $2.12 in adjusted EPS, reflecting a 12% and 29% YoY increase, respectively.</p></blockquote><p><a href=\"https://ttm.financial/S/GOOGL\" title=\"Alphabet\" class=\"\">Alphabet</a> is set to release its fourth-quarter earnings report on Feb 4 after the market closes.</p><h2 id=\"id_1358305931\" style=\"text-align: left;\">Previous Quarter Review</h2><p>Google parent Alphabet reported third-quarter earnings that beat on top and bottom lines with strong revenue growth from the company’s cloud unit.</p><ul style=\"\"><li><p><strong>Earnings per share:</strong> $2.12 vs. $1.85 expected by LSEG</p></li><li><p><strong>Revenue: </strong>$88.27 billion vs.<strong> </strong>$86.30 billion expected by LSEG</p></li></ul><p style=\"text-align: start;\">Here are other numbers Wall Street was watching:</p><ul style=\"\"><li><p><strong>YouTube advertising revenue</strong>: $8.92 billion vs. $8.89 billion, according to StreetAccount</p></li><li><p><strong>Google Cloud revenue: </strong>$11.35 billion<strong> </strong>vs.<strong> </strong>$10.88 billion, according to StreetAccount</p></li><li><p><strong>Traffic acquisition costs (TAC)</strong>: $13.72 billion vs. $13.53 billion, according to StreetAccount</p></li></ul><p style=\"text-align: start;\">Alphabet’s revenue grew 15% year over year, which is stronger than the same quarter last year.</p><p style=\"text-align: start;\">The company reported blowout cloud revenue at $11.35 billion, up nearly 35% from the $8.41 billion a year ago. The company attributed its strong cloud results to its artificial intelligence offerings, which include subscriptions for enterprise customers.</p><h2 id=\"id_2617719276\" style=\"text-align: left;\">Q4 Results Outlook</h2><p>Google Cloud sequential growth could continue at a high single-digit pace due to traction with enterprises deploying AI use cases on Vertex. Alphabet&#39;s 2025 capex forecast will be key on the 4Q call, given Microsoft&#39;s view of $80 billion in AI spending this year.</p><p>Search will likely be aided by robust holiday ad spending, despite competitive pressures from rivals such as ChatGPT, Claude and Perplexity.</p><p>While uncertainty remains around the DoJ&#39;s proposed divestiture of Chrome, the integration of Gemini LLM with its Android OS, TV and smartphones could offset the risk outside of desktops.</p><p>YouTube subscription growth may stay above 20% with possible gains from a TikTok ban.</p><p>Waymo&#39;s Uber pact and expansion in more cities suggest an inflection in the segment&#39;s contribution to top-line growth. Currency could be a slight headwind.</p><h2 id=\"id_627001891\">Analyst Opinions</h2><p><strong>Wall Street analysts</strong> are strongly optimistic about GOOG’s stock, with a &#34;Strong Buy&#34; rating overall. Among 50 analysts covering the stock, 39 recommend &#34;Strong Buy,&#34; three indicate “Moderate Buy,” and eight suggest “Hold.” This configuration is slightly more bullish than three months ago, with 38 analysts suggesting a “Strong Buy.”</p><p><strong>Jay Woods</strong>, global strategist at Freedom Capital Markets, said Wall Street’s line of questioning for Big Tech could shift from spending on AI toward the results as Alphabet and Amazon try to increase usage of assistants like Gemini and Rufus.</p><p><strong>Vulcan Value Partners</strong> stated the following regarding Alphabet Inc. in its Q4 2024 investor letter:“Alphabet delivered strong results during the third quarter. In particular, Google Cloud revenue grew 35% during the period and the segment’s margins expanded materially. Disruption risks to core search from generative AI have not completely abated, but Alphabet’s technical prowess and historical investments in leading technologies are becoming more apparent. We continue to monitor the antitrust cases against the company, and we will follow our discipline as we receive more information.&#34;</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Google Q4 Earnings Preview: Capex in Focus as LLMs Power Search, Cloud</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGoogle Q4 Earnings Preview: Capex in Focus as LLMs Power Search, Cloud\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2025-01-21 17:45</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><blockquote><p>According to data compiled by Bloomberg, analysts project around $96.61 billion in Q4 revenue and $2.12 in adjusted EPS, reflecting a 12% and 29% YoY increase, respectively.</p></blockquote><p><a href=\"https://ttm.financial/S/GOOGL\" title=\"Alphabet\" class=\"\">Alphabet</a> is set to release its fourth-quarter earnings report on Feb 4 after the market closes.</p><h2 id=\"id_1358305931\" style=\"text-align: left;\">Previous Quarter Review</h2><p>Google parent Alphabet reported third-quarter earnings that beat on top and bottom lines with strong revenue growth from the company’s cloud unit.</p><ul style=\"\"><li><p><strong>Earnings per share:</strong> $2.12 vs. $1.85 expected by LSEG</p></li><li><p><strong>Revenue: </strong>$88.27 billion vs.<strong> </strong>$86.30 billion expected by LSEG</p></li></ul><p style=\"text-align: start;\">Here are other numbers Wall Street was watching:</p><ul style=\"\"><li><p><strong>YouTube advertising revenue</strong>: $8.92 billion vs. $8.89 billion, according to StreetAccount</p></li><li><p><strong>Google Cloud revenue: </strong>$11.35 billion<strong> </strong>vs.<strong> </strong>$10.88 billion, according to StreetAccount</p></li><li><p><strong>Traffic acquisition costs (TAC)</strong>: $13.72 billion vs. $13.53 billion, according to StreetAccount</p></li></ul><p style=\"text-align: start;\">Alphabet’s revenue grew 15% year over year, which is stronger than the same quarter last year.</p><p style=\"text-align: start;\">The company reported blowout cloud revenue at $11.35 billion, up nearly 35% from the $8.41 billion a year ago. The company attributed its strong cloud results to its artificial intelligence offerings, which include subscriptions for enterprise customers.</p><h2 id=\"id_2617719276\" style=\"text-align: left;\">Q4 Results Outlook</h2><p>Google Cloud sequential growth could continue at a high single-digit pace due to traction with enterprises deploying AI use cases on Vertex. Alphabet&#39;s 2025 capex forecast will be key on the 4Q call, given Microsoft&#39;s view of $80 billion in AI spending this year.</p><p>Search will likely be aided by robust holiday ad spending, despite competitive pressures from rivals such as ChatGPT, Claude and Perplexity.</p><p>While uncertainty remains around the DoJ&#39;s proposed divestiture of Chrome, the integration of Gemini LLM with its Android OS, TV and smartphones could offset the risk outside of desktops.</p><p>YouTube subscription growth may stay above 20% with possible gains from a TikTok ban.</p><p>Waymo&#39;s Uber pact and expansion in more cities suggest an inflection in the segment&#39;s contribution to top-line growth. Currency could be a slight headwind.</p><h2 id=\"id_627001891\">Analyst Opinions</h2><p><strong>Wall Street analysts</strong> are strongly optimistic about GOOG’s stock, with a &#34;Strong Buy&#34; rating overall. Among 50 analysts covering the stock, 39 recommend &#34;Strong Buy,&#34; three indicate “Moderate Buy,” and eight suggest “Hold.” This configuration is slightly more bullish than three months ago, with 38 analysts suggesting a “Strong Buy.”</p><p><strong>Jay Woods</strong>, global strategist at Freedom Capital Markets, said Wall Street’s line of questioning for Big Tech could shift from spending on AI toward the results as Alphabet and Amazon try to increase usage of assistants like Gemini and Rufus.</p><p><strong>Vulcan Value Partners</strong> stated the following regarding Alphabet Inc. in its Q4 2024 investor letter:“Alphabet delivered strong results during the third quarter. In particular, Google Cloud revenue grew 35% during the period and the segment’s margins expanded materially. Disruption risks to core search from generative AI have not completely abated, but Alphabet’s technical prowess and historical investments in leading technologies are becoming more apparent. We continue to monitor the antitrust cases against the company, and we will follow our discipline as we receive more information.&#34;</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"GOOGL":"谷歌A","GOOG":"谷歌"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1118665035","content_text":"According to data compiled by Bloomberg, analysts project around $96.61 billion in Q4 revenue and $2.12 in adjusted EPS, reflecting a 12% and 29% YoY increase, respectively.Alphabet is set to release its fourth-quarter earnings report on Feb 4 after the market closes.Previous Quarter ReviewGoogle parent Alphabet reported third-quarter earnings that beat on top and bottom lines with strong revenue growth from the company’s cloud unit.Earnings per share: $2.12 vs. $1.85 expected by LSEGRevenue: $88.27 billion vs. $86.30 billion expected by LSEGHere are other numbers Wall Street was watching:YouTube advertising revenue: $8.92 billion vs. $8.89 billion, according to StreetAccountGoogle Cloud revenue: $11.35 billion vs. $10.88 billion, according to StreetAccountTraffic acquisition costs (TAC): $13.72 billion vs. $13.53 billion, according to StreetAccountAlphabet’s revenue grew 15% year over year, which is stronger than the same quarter last year.The company reported blowout cloud revenue at $11.35 billion, up nearly 35% from the $8.41 billion a year ago. The company attributed its strong cloud results to its artificial intelligence offerings, which include subscriptions for enterprise customers.Q4 Results OutlookGoogle Cloud sequential growth could continue at a high single-digit pace due to traction with enterprises deploying AI use cases on Vertex. Alphabet's 2025 capex forecast will be key on the 4Q call, given Microsoft's view of $80 billion in AI spending this year.Search will likely be aided by robust holiday ad spending, despite competitive pressures from rivals such as ChatGPT, Claude and Perplexity.While uncertainty remains around the DoJ's proposed divestiture of Chrome, the integration of Gemini LLM with its Android OS, TV and smartphones could offset the risk outside of desktops.YouTube subscription growth may stay above 20% with possible gains from a TikTok ban.Waymo's Uber pact and expansion in more cities suggest an inflection in the segment's contribution to top-line growth. Currency could be a slight headwind.Analyst OpinionsWall Street analysts are strongly optimistic about GOOG’s stock, with a \"Strong Buy\" rating overall. Among 50 analysts covering the stock, 39 recommend \"Strong Buy,\" three indicate “Moderate Buy,” and eight suggest “Hold.” This configuration is slightly more bullish than three months ago, with 38 analysts suggesting a “Strong Buy.”Jay Woods, global strategist at Freedom Capital Markets, said Wall Street’s line of questioning for Big Tech could shift from spending on AI toward the results as Alphabet and Amazon try to increase usage of assistants like Gemini and Rufus.Vulcan Value Partners stated the following regarding Alphabet Inc. in its Q4 2024 investor letter:“Alphabet delivered strong results during the third quarter. In particular, Google Cloud revenue grew 35% during the period and the segment’s margins expanded materially. Disruption risks to core search from generative AI have not completely abated, but Alphabet’s technical prowess and historical investments in leading technologies are becoming more apparent. We continue to monitor the antitrust cases against the company, and we will follow our discipline as we receive more information.\"","news_type":1,"symbols_score_info":{"GOOGL":1.1,"GOOG":1.1}},"isVote":1,"tweetType":1,"viewCount":1045,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":398822893101264,"gmtCreate":1738394075179,"gmtModify":1738394078885,"author":{"id":"4201061858351912","authorId":"4201061858351912","name":"Widraw","avatar":"https://community-static.tradeup.com/news/dfead61c8f4e8ef924f983b493e29683","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4201061858351912","idStr":"4201061858351912"},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/Z74.SI\">$Singtel(Z74.SI)$&nbsp;</a>&nbsp;//<a href=\"https://ttm.financial/U/4201061858351912\">@Widraw</a>:Great article, would you like to share it?","listText":"<a href=\"https://ttm.financial/S/Z74.SI\">$Singtel(Z74.SI)$&nbsp;</a>&nbsp;//<a href=\"https://ttm.financial/U/4201061858351912\">@Widraw</a>:Great article, would you like to share it?","text":"$Singtel(Z74.SI)$ //@Widraw:Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/398822893101264","repostId":"1118665035","repostType":2,"repost":{"id":"1118665035","kind":"news","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1737452731,"share":"https://ttm.financial/m/news/1118665035?lang=en_US&edition=fundamental","pubTime":"2025-01-21 17:45","market":"us","language":"en","title":"Google Q4 Earnings Preview: Capex in Focus as LLMs Power Search, Cloud","url":"https://stock-news.laohu8.com/highlight/detail?id=1118665035","media":"Tiger Newspress","summary":"According to data compiled by Bloomberg, analysts project around $96.61 billion in Q4 revenue and $2.12 in adjusted EPS, reflecting a 12% and 29% YoY increase, respectively.Alphabet is set to release ","content":"<html><head></head><body><blockquote><p>According to data compiled by Bloomberg, analysts project around $96.61 billion in Q4 revenue and $2.12 in adjusted EPS, reflecting a 12% and 29% YoY increase, respectively.</p></blockquote><p><a href=\"https://ttm.financial/S/GOOGL\" title=\"Alphabet\" class=\"\">Alphabet</a> is set to release its fourth-quarter earnings report on Feb 4 after the market closes.</p><h2 id=\"id_1358305931\" style=\"text-align: left;\">Previous Quarter Review</h2><p>Google parent Alphabet reported third-quarter earnings that beat on top and bottom lines with strong revenue growth from the company’s cloud unit.</p><ul style=\"\"><li><p><strong>Earnings per share:</strong> $2.12 vs. $1.85 expected by LSEG</p></li><li><p><strong>Revenue: </strong>$88.27 billion vs.<strong> </strong>$86.30 billion expected by LSEG</p></li></ul><p style=\"text-align: start;\">Here are other numbers Wall Street was watching:</p><ul style=\"\"><li><p><strong>YouTube advertising revenue</strong>: $8.92 billion vs. $8.89 billion, according to StreetAccount</p></li><li><p><strong>Google Cloud revenue: </strong>$11.35 billion<strong> </strong>vs.<strong> </strong>$10.88 billion, according to StreetAccount</p></li><li><p><strong>Traffic acquisition costs (TAC)</strong>: $13.72 billion vs. $13.53 billion, according to StreetAccount</p></li></ul><p style=\"text-align: start;\">Alphabet’s revenue grew 15% year over year, which is stronger than the same quarter last year.</p><p style=\"text-align: start;\">The company reported blowout cloud revenue at $11.35 billion, up nearly 35% from the $8.41 billion a year ago. The company attributed its strong cloud results to its artificial intelligence offerings, which include subscriptions for enterprise customers.</p><h2 id=\"id_2617719276\" style=\"text-align: left;\">Q4 Results Outlook</h2><p>Google Cloud sequential growth could continue at a high single-digit pace due to traction with enterprises deploying AI use cases on Vertex. Alphabet&#39;s 2025 capex forecast will be key on the 4Q call, given Microsoft&#39;s view of $80 billion in AI spending this year.</p><p>Search will likely be aided by robust holiday ad spending, despite competitive pressures from rivals such as ChatGPT, Claude and Perplexity.</p><p>While uncertainty remains around the DoJ&#39;s proposed divestiture of Chrome, the integration of Gemini LLM with its Android OS, TV and smartphones could offset the risk outside of desktops.</p><p>YouTube subscription growth may stay above 20% with possible gains from a TikTok ban.</p><p>Waymo&#39;s Uber pact and expansion in more cities suggest an inflection in the segment&#39;s contribution to top-line growth. Currency could be a slight headwind.</p><h2 id=\"id_627001891\">Analyst Opinions</h2><p><strong>Wall Street analysts</strong> are strongly optimistic about GOOG’s stock, with a &#34;Strong Buy&#34; rating overall. Among 50 analysts covering the stock, 39 recommend &#34;Strong Buy,&#34; three indicate “Moderate Buy,” and eight suggest “Hold.” This configuration is slightly more bullish than three months ago, with 38 analysts suggesting a “Strong Buy.”</p><p><strong>Jay Woods</strong>, global strategist at Freedom Capital Markets, said Wall Street’s line of questioning for Big Tech could shift from spending on AI toward the results as Alphabet and Amazon try to increase usage of assistants like Gemini and Rufus.</p><p><strong>Vulcan Value Partners</strong> stated the following regarding Alphabet Inc. in its Q4 2024 investor letter:“Alphabet delivered strong results during the third quarter. In particular, Google Cloud revenue grew 35% during the period and the segment’s margins expanded materially. Disruption risks to core search from generative AI have not completely abated, but Alphabet’s technical prowess and historical investments in leading technologies are becoming more apparent. We continue to monitor the antitrust cases against the company, and we will follow our discipline as we receive more information.&#34;</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Google Q4 Earnings Preview: Capex in Focus as LLMs Power Search, Cloud</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGoogle Q4 Earnings Preview: Capex in Focus as LLMs Power Search, Cloud\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2025-01-21 17:45</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><blockquote><p>According to data compiled by Bloomberg, analysts project around $96.61 billion in Q4 revenue and $2.12 in adjusted EPS, reflecting a 12% and 29% YoY increase, respectively.</p></blockquote><p><a href=\"https://ttm.financial/S/GOOGL\" title=\"Alphabet\" class=\"\">Alphabet</a> is set to release its fourth-quarter earnings report on Feb 4 after the market closes.</p><h2 id=\"id_1358305931\" style=\"text-align: left;\">Previous Quarter Review</h2><p>Google parent Alphabet reported third-quarter earnings that beat on top and bottom lines with strong revenue growth from the company’s cloud unit.</p><ul style=\"\"><li><p><strong>Earnings per share:</strong> $2.12 vs. $1.85 expected by LSEG</p></li><li><p><strong>Revenue: </strong>$88.27 billion vs.<strong> </strong>$86.30 billion expected by LSEG</p></li></ul><p style=\"text-align: start;\">Here are other numbers Wall Street was watching:</p><ul style=\"\"><li><p><strong>YouTube advertising revenue</strong>: $8.92 billion vs. $8.89 billion, according to StreetAccount</p></li><li><p><strong>Google Cloud revenue: </strong>$11.35 billion<strong> </strong>vs.<strong> </strong>$10.88 billion, according to StreetAccount</p></li><li><p><strong>Traffic acquisition costs (TAC)</strong>: $13.72 billion vs. $13.53 billion, according to StreetAccount</p></li></ul><p style=\"text-align: start;\">Alphabet’s revenue grew 15% year over year, which is stronger than the same quarter last year.</p><p style=\"text-align: start;\">The company reported blowout cloud revenue at $11.35 billion, up nearly 35% from the $8.41 billion a year ago. The company attributed its strong cloud results to its artificial intelligence offerings, which include subscriptions for enterprise customers.</p><h2 id=\"id_2617719276\" style=\"text-align: left;\">Q4 Results Outlook</h2><p>Google Cloud sequential growth could continue at a high single-digit pace due to traction with enterprises deploying AI use cases on Vertex. Alphabet&#39;s 2025 capex forecast will be key on the 4Q call, given Microsoft&#39;s view of $80 billion in AI spending this year.</p><p>Search will likely be aided by robust holiday ad spending, despite competitive pressures from rivals such as ChatGPT, Claude and Perplexity.</p><p>While uncertainty remains around the DoJ&#39;s proposed divestiture of Chrome, the integration of Gemini LLM with its Android OS, TV and smartphones could offset the risk outside of desktops.</p><p>YouTube subscription growth may stay above 20% with possible gains from a TikTok ban.</p><p>Waymo&#39;s Uber pact and expansion in more cities suggest an inflection in the segment&#39;s contribution to top-line growth. Currency could be a slight headwind.</p><h2 id=\"id_627001891\">Analyst Opinions</h2><p><strong>Wall Street analysts</strong> are strongly optimistic about GOOG’s stock, with a &#34;Strong Buy&#34; rating overall. Among 50 analysts covering the stock, 39 recommend &#34;Strong Buy,&#34; three indicate “Moderate Buy,” and eight suggest “Hold.” This configuration is slightly more bullish than three months ago, with 38 analysts suggesting a “Strong Buy.”</p><p><strong>Jay Woods</strong>, global strategist at Freedom Capital Markets, said Wall Street’s line of questioning for Big Tech could shift from spending on AI toward the results as Alphabet and Amazon try to increase usage of assistants like Gemini and Rufus.</p><p><strong>Vulcan Value Partners</strong> stated the following regarding Alphabet Inc. in its Q4 2024 investor letter:“Alphabet delivered strong results during the third quarter. In particular, Google Cloud revenue grew 35% during the period and the segment’s margins expanded materially. Disruption risks to core search from generative AI have not completely abated, but Alphabet’s technical prowess and historical investments in leading technologies are becoming more apparent. We continue to monitor the antitrust cases against the company, and we will follow our discipline as we receive more information.&#34;</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"GOOGL":"谷歌A","GOOG":"谷歌"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1118665035","content_text":"According to data compiled by Bloomberg, analysts project around $96.61 billion in Q4 revenue and $2.12 in adjusted EPS, reflecting a 12% and 29% YoY increase, respectively.Alphabet is set to release its fourth-quarter earnings report on Feb 4 after the market closes.Previous Quarter ReviewGoogle parent Alphabet reported third-quarter earnings that beat on top and bottom lines with strong revenue growth from the company’s cloud unit.Earnings per share: $2.12 vs. $1.85 expected by LSEGRevenue: $88.27 billion vs. $86.30 billion expected by LSEGHere are other numbers Wall Street was watching:YouTube advertising revenue: $8.92 billion vs. $8.89 billion, according to StreetAccountGoogle Cloud revenue: $11.35 billion vs. $10.88 billion, according to StreetAccountTraffic acquisition costs (TAC): $13.72 billion vs. $13.53 billion, according to StreetAccountAlphabet’s revenue grew 15% year over year, which is stronger than the same quarter last year.The company reported blowout cloud revenue at $11.35 billion, up nearly 35% from the $8.41 billion a year ago. The company attributed its strong cloud results to its artificial intelligence offerings, which include subscriptions for enterprise customers.Q4 Results OutlookGoogle Cloud sequential growth could continue at a high single-digit pace due to traction with enterprises deploying AI use cases on Vertex. Alphabet's 2025 capex forecast will be key on the 4Q call, given Microsoft's view of $80 billion in AI spending this year.Search will likely be aided by robust holiday ad spending, despite competitive pressures from rivals such as ChatGPT, Claude and Perplexity.While uncertainty remains around the DoJ's proposed divestiture of Chrome, the integration of Gemini LLM with its Android OS, TV and smartphones could offset the risk outside of desktops.YouTube subscription growth may stay above 20% with possible gains from a TikTok ban.Waymo's Uber pact and expansion in more cities suggest an inflection in the segment's contribution to top-line growth. Currency could be a slight headwind.Analyst OpinionsWall Street analysts are strongly optimistic about GOOG’s stock, with a \"Strong Buy\" rating overall. Among 50 analysts covering the stock, 39 recommend \"Strong Buy,\" three indicate “Moderate Buy,” and eight suggest “Hold.” This configuration is slightly more bullish than three months ago, with 38 analysts suggesting a “Strong Buy.”Jay Woods, global strategist at Freedom Capital Markets, said Wall Street’s line of questioning for Big Tech could shift from spending on AI toward the results as Alphabet and Amazon try to increase usage of assistants like Gemini and Rufus.Vulcan Value Partners stated the following regarding Alphabet Inc. in its Q4 2024 investor letter:“Alphabet delivered strong results during the third quarter. In particular, Google Cloud revenue grew 35% during the period and the segment’s margins expanded materially. Disruption risks to core search from generative AI have not completely abated, but Alphabet’s technical prowess and historical investments in leading technologies are becoming more apparent. We continue to monitor the antitrust cases against the company, and we will follow our discipline as we receive more information.\"","news_type":1,"symbols_score_info":{"GOOGL":1.1,"GOOG":1.1}},"isVote":1,"tweetType":1,"viewCount":1078,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":398823765901712,"gmtCreate":1738394017764,"gmtModify":1738396954793,"author":{"id":"4201061858351912","authorId":"4201061858351912","name":"Widraw","avatar":"https://community-static.tradeup.com/news/dfead61c8f4e8ef924f983b493e29683","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4201061858351912","idStr":"4201061858351912"},"themes":[],"htmlText":"https://tigr.link/s/50AForP","listText":"https://tigr.link/s/50AForP","text":"https://tigr.link/s/50AForP","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/398823765901712","repostId":"1118665035","repostType":2,"repost":{"id":"1118665035","kind":"news","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1737452731,"share":"https://ttm.financial/m/news/1118665035?lang=en_US&edition=fundamental","pubTime":"2025-01-21 17:45","market":"us","language":"en","title":"Google Q4 Earnings Preview: Capex in Focus as LLMs Power Search, Cloud","url":"https://stock-news.laohu8.com/highlight/detail?id=1118665035","media":"Tiger Newspress","summary":"According to data compiled by Bloomberg, analysts project around $96.61 billion in Q4 revenue and $2.12 in adjusted EPS, reflecting a 12% and 29% YoY increase, respectively.Alphabet is set to release ","content":"<html><head></head><body><blockquote><p>According to data compiled by Bloomberg, analysts project around $96.61 billion in Q4 revenue and $2.12 in adjusted EPS, reflecting a 12% and 29% YoY increase, respectively.</p></blockquote><p><a href=\"https://ttm.financial/S/GOOGL\" title=\"Alphabet\" class=\"\">Alphabet</a> is set to release its fourth-quarter earnings report on Feb 4 after the market closes.</p><h2 id=\"id_1358305931\" style=\"text-align: left;\">Previous Quarter Review</h2><p>Google parent Alphabet reported third-quarter earnings that beat on top and bottom lines with strong revenue growth from the company’s cloud unit.</p><ul style=\"\"><li><p><strong>Earnings per share:</strong> $2.12 vs. $1.85 expected by LSEG</p></li><li><p><strong>Revenue: </strong>$88.27 billion vs.<strong> </strong>$86.30 billion expected by LSEG</p></li></ul><p style=\"text-align: start;\">Here are other numbers Wall Street was watching:</p><ul style=\"\"><li><p><strong>YouTube advertising revenue</strong>: $8.92 billion vs. $8.89 billion, according to StreetAccount</p></li><li><p><strong>Google Cloud revenue: </strong>$11.35 billion<strong> </strong>vs.<strong> </strong>$10.88 billion, according to StreetAccount</p></li><li><p><strong>Traffic acquisition costs (TAC)</strong>: $13.72 billion vs. $13.53 billion, according to StreetAccount</p></li></ul><p style=\"text-align: start;\">Alphabet’s revenue grew 15% year over year, which is stronger than the same quarter last year.</p><p style=\"text-align: start;\">The company reported blowout cloud revenue at $11.35 billion, up nearly 35% from the $8.41 billion a year ago. The company attributed its strong cloud results to its artificial intelligence offerings, which include subscriptions for enterprise customers.</p><h2 id=\"id_2617719276\" style=\"text-align: left;\">Q4 Results Outlook</h2><p>Google Cloud sequential growth could continue at a high single-digit pace due to traction with enterprises deploying AI use cases on Vertex. Alphabet&#39;s 2025 capex forecast will be key on the 4Q call, given Microsoft&#39;s view of $80 billion in AI spending this year.</p><p>Search will likely be aided by robust holiday ad spending, despite competitive pressures from rivals such as ChatGPT, Claude and Perplexity.</p><p>While uncertainty remains around the DoJ&#39;s proposed divestiture of Chrome, the integration of Gemini LLM with its Android OS, TV and smartphones could offset the risk outside of desktops.</p><p>YouTube subscription growth may stay above 20% with possible gains from a TikTok ban.</p><p>Waymo&#39;s Uber pact and expansion in more cities suggest an inflection in the segment&#39;s contribution to top-line growth. Currency could be a slight headwind.</p><h2 id=\"id_627001891\">Analyst Opinions</h2><p><strong>Wall Street analysts</strong> are strongly optimistic about GOOG’s stock, with a &#34;Strong Buy&#34; rating overall. Among 50 analysts covering the stock, 39 recommend &#34;Strong Buy,&#34; three indicate “Moderate Buy,” and eight suggest “Hold.” This configuration is slightly more bullish than three months ago, with 38 analysts suggesting a “Strong Buy.”</p><p><strong>Jay Woods</strong>, global strategist at Freedom Capital Markets, said Wall Street’s line of questioning for Big Tech could shift from spending on AI toward the results as Alphabet and Amazon try to increase usage of assistants like Gemini and Rufus.</p><p><strong>Vulcan Value Partners</strong> stated the following regarding Alphabet Inc. in its Q4 2024 investor letter:“Alphabet delivered strong results during the third quarter. In particular, Google Cloud revenue grew 35% during the period and the segment’s margins expanded materially. Disruption risks to core search from generative AI have not completely abated, but Alphabet’s technical prowess and historical investments in leading technologies are becoming more apparent. We continue to monitor the antitrust cases against the company, and we will follow our discipline as we receive more information.&#34;</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Google Q4 Earnings Preview: Capex in Focus as LLMs Power Search, Cloud</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGoogle Q4 Earnings Preview: Capex in Focus as LLMs Power Search, Cloud\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2025-01-21 17:45</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><blockquote><p>According to data compiled by Bloomberg, analysts project around $96.61 billion in Q4 revenue and $2.12 in adjusted EPS, reflecting a 12% and 29% YoY increase, respectively.</p></blockquote><p><a href=\"https://ttm.financial/S/GOOGL\" title=\"Alphabet\" class=\"\">Alphabet</a> is set to release its fourth-quarter earnings report on Feb 4 after the market closes.</p><h2 id=\"id_1358305931\" style=\"text-align: left;\">Previous Quarter Review</h2><p>Google parent Alphabet reported third-quarter earnings that beat on top and bottom lines with strong revenue growth from the company’s cloud unit.</p><ul style=\"\"><li><p><strong>Earnings per share:</strong> $2.12 vs. $1.85 expected by LSEG</p></li><li><p><strong>Revenue: </strong>$88.27 billion vs.<strong> </strong>$86.30 billion expected by LSEG</p></li></ul><p style=\"text-align: start;\">Here are other numbers Wall Street was watching:</p><ul style=\"\"><li><p><strong>YouTube advertising revenue</strong>: $8.92 billion vs. $8.89 billion, according to StreetAccount</p></li><li><p><strong>Google Cloud revenue: </strong>$11.35 billion<strong> </strong>vs.<strong> </strong>$10.88 billion, according to StreetAccount</p></li><li><p><strong>Traffic acquisition costs (TAC)</strong>: $13.72 billion vs. $13.53 billion, according to StreetAccount</p></li></ul><p style=\"text-align: start;\">Alphabet’s revenue grew 15% year over year, which is stronger than the same quarter last year.</p><p style=\"text-align: start;\">The company reported blowout cloud revenue at $11.35 billion, up nearly 35% from the $8.41 billion a year ago. The company attributed its strong cloud results to its artificial intelligence offerings, which include subscriptions for enterprise customers.</p><h2 id=\"id_2617719276\" style=\"text-align: left;\">Q4 Results Outlook</h2><p>Google Cloud sequential growth could continue at a high single-digit pace due to traction with enterprises deploying AI use cases on Vertex. Alphabet&#39;s 2025 capex forecast will be key on the 4Q call, given Microsoft&#39;s view of $80 billion in AI spending this year.</p><p>Search will likely be aided by robust holiday ad spending, despite competitive pressures from rivals such as ChatGPT, Claude and Perplexity.</p><p>While uncertainty remains around the DoJ&#39;s proposed divestiture of Chrome, the integration of Gemini LLM with its Android OS, TV and smartphones could offset the risk outside of desktops.</p><p>YouTube subscription growth may stay above 20% with possible gains from a TikTok ban.</p><p>Waymo&#39;s Uber pact and expansion in more cities suggest an inflection in the segment&#39;s contribution to top-line growth. Currency could be a slight headwind.</p><h2 id=\"id_627001891\">Analyst Opinions</h2><p><strong>Wall Street analysts</strong> are strongly optimistic about GOOG’s stock, with a &#34;Strong Buy&#34; rating overall. Among 50 analysts covering the stock, 39 recommend &#34;Strong Buy,&#34; three indicate “Moderate Buy,” and eight suggest “Hold.” This configuration is slightly more bullish than three months ago, with 38 analysts suggesting a “Strong Buy.”</p><p><strong>Jay Woods</strong>, global strategist at Freedom Capital Markets, said Wall Street’s line of questioning for Big Tech could shift from spending on AI toward the results as Alphabet and Amazon try to increase usage of assistants like Gemini and Rufus.</p><p><strong>Vulcan Value Partners</strong> stated the following regarding Alphabet Inc. in its Q4 2024 investor letter:“Alphabet delivered strong results during the third quarter. In particular, Google Cloud revenue grew 35% during the period and the segment’s margins expanded materially. Disruption risks to core search from generative AI have not completely abated, but Alphabet’s technical prowess and historical investments in leading technologies are becoming more apparent. We continue to monitor the antitrust cases against the company, and we will follow our discipline as we receive more information.&#34;</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"GOOGL":"谷歌A","GOOG":"谷歌"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1118665035","content_text":"According to data compiled by Bloomberg, analysts project around $96.61 billion in Q4 revenue and $2.12 in adjusted EPS, reflecting a 12% and 29% YoY increase, respectively.Alphabet is set to release its fourth-quarter earnings report on Feb 4 after the market closes.Previous Quarter ReviewGoogle parent Alphabet reported third-quarter earnings that beat on top and bottom lines with strong revenue growth from the company’s cloud unit.Earnings per share: $2.12 vs. $1.85 expected by LSEGRevenue: $88.27 billion vs. $86.30 billion expected by LSEGHere are other numbers Wall Street was watching:YouTube advertising revenue: $8.92 billion vs. $8.89 billion, according to StreetAccountGoogle Cloud revenue: $11.35 billion vs. $10.88 billion, according to StreetAccountTraffic acquisition costs (TAC): $13.72 billion vs. $13.53 billion, according to StreetAccountAlphabet’s revenue grew 15% year over year, which is stronger than the same quarter last year.The company reported blowout cloud revenue at $11.35 billion, up nearly 35% from the $8.41 billion a year ago. The company attributed its strong cloud results to its artificial intelligence offerings, which include subscriptions for enterprise customers.Q4 Results OutlookGoogle Cloud sequential growth could continue at a high single-digit pace due to traction with enterprises deploying AI use cases on Vertex. Alphabet's 2025 capex forecast will be key on the 4Q call, given Microsoft's view of $80 billion in AI spending this year.Search will likely be aided by robust holiday ad spending, despite competitive pressures from rivals such as ChatGPT, Claude and Perplexity.While uncertainty remains around the DoJ's proposed divestiture of Chrome, the integration of Gemini LLM with its Android OS, TV and smartphones could offset the risk outside of desktops.YouTube subscription growth may stay above 20% with possible gains from a TikTok ban.Waymo's Uber pact and expansion in more cities suggest an inflection in the segment's contribution to top-line growth. Currency could be a slight headwind.Analyst OpinionsWall Street analysts are strongly optimistic about GOOG’s stock, with a \"Strong Buy\" rating overall. Among 50 analysts covering the stock, 39 recommend \"Strong Buy,\" three indicate “Moderate Buy,” and eight suggest “Hold.” This configuration is slightly more bullish than three months ago, with 38 analysts suggesting a “Strong Buy.”Jay Woods, global strategist at Freedom Capital Markets, said Wall Street’s line of questioning for Big Tech could shift from spending on AI toward the results as Alphabet and Amazon try to increase usage of assistants like Gemini and Rufus.Vulcan Value Partners stated the following regarding Alphabet Inc. in its Q4 2024 investor letter:“Alphabet delivered strong results during the third quarter. In particular, Google Cloud revenue grew 35% during the period and the segment’s margins expanded materially. Disruption risks to core search from generative AI have not completely abated, but Alphabet’s technical prowess and historical investments in leading technologies are becoming more apparent. We continue to monitor the antitrust cases against the company, and we will follow our discipline as we receive more information.\"","news_type":1,"symbols_score_info":{"GOOGL":1.1,"GOOG":1.1}},"isVote":1,"tweetType":1,"viewCount":606,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":398822128689272,"gmtCreate":1738393801823,"gmtModify":1738393804005,"author":{"id":"4201061858351912","authorId":"4201061858351912","name":"Widraw","avatar":"https://community-static.tradeup.com/news/dfead61c8f4e8ef924f983b493e29683","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4201061858351912","idStr":"4201061858351912"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/398822128689272","repostId":"1118665035","repostType":2,"repost":{"id":"1118665035","kind":"news","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1737452731,"share":"https://ttm.financial/m/news/1118665035?lang=en_US&edition=fundamental","pubTime":"2025-01-21 17:45","market":"us","language":"en","title":"Google Q4 Earnings Preview: Capex in Focus as LLMs Power Search, Cloud","url":"https://stock-news.laohu8.com/highlight/detail?id=1118665035","media":"Tiger Newspress","summary":"According to data compiled by Bloomberg, analysts project around $96.61 billion in Q4 revenue and $2.12 in adjusted EPS, reflecting a 12% and 29% YoY increase, respectively.Alphabet is set to release ","content":"<html><head></head><body><blockquote><p>According to data compiled by Bloomberg, analysts project around $96.61 billion in Q4 revenue and $2.12 in adjusted EPS, reflecting a 12% and 29% YoY increase, respectively.</p></blockquote><p><a href=\"https://ttm.financial/S/GOOGL\" title=\"Alphabet\" class=\"\">Alphabet</a> is set to release its fourth-quarter earnings report on Feb 4 after the market closes.</p><h2 id=\"id_1358305931\" style=\"text-align: left;\">Previous Quarter Review</h2><p>Google parent Alphabet reported third-quarter earnings that beat on top and bottom lines with strong revenue growth from the company’s cloud unit.</p><ul style=\"\"><li><p><strong>Earnings per share:</strong> $2.12 vs. $1.85 expected by LSEG</p></li><li><p><strong>Revenue: </strong>$88.27 billion vs.<strong> </strong>$86.30 billion expected by LSEG</p></li></ul><p style=\"text-align: start;\">Here are other numbers Wall Street was watching:</p><ul style=\"\"><li><p><strong>YouTube advertising revenue</strong>: $8.92 billion vs. $8.89 billion, according to StreetAccount</p></li><li><p><strong>Google Cloud revenue: </strong>$11.35 billion<strong> </strong>vs.<strong> </strong>$10.88 billion, according to StreetAccount</p></li><li><p><strong>Traffic acquisition costs (TAC)</strong>: $13.72 billion vs. $13.53 billion, according to StreetAccount</p></li></ul><p style=\"text-align: start;\">Alphabet’s revenue grew 15% year over year, which is stronger than the same quarter last year.</p><p style=\"text-align: start;\">The company reported blowout cloud revenue at $11.35 billion, up nearly 35% from the $8.41 billion a year ago. The company attributed its strong cloud results to its artificial intelligence offerings, which include subscriptions for enterprise customers.</p><h2 id=\"id_2617719276\" style=\"text-align: left;\">Q4 Results Outlook</h2><p>Google Cloud sequential growth could continue at a high single-digit pace due to traction with enterprises deploying AI use cases on Vertex. Alphabet&#39;s 2025 capex forecast will be key on the 4Q call, given Microsoft&#39;s view of $80 billion in AI spending this year.</p><p>Search will likely be aided by robust holiday ad spending, despite competitive pressures from rivals such as ChatGPT, Claude and Perplexity.</p><p>While uncertainty remains around the DoJ&#39;s proposed divestiture of Chrome, the integration of Gemini LLM with its Android OS, TV and smartphones could offset the risk outside of desktops.</p><p>YouTube subscription growth may stay above 20% with possible gains from a TikTok ban.</p><p>Waymo&#39;s Uber pact and expansion in more cities suggest an inflection in the segment&#39;s contribution to top-line growth. Currency could be a slight headwind.</p><h2 id=\"id_627001891\">Analyst Opinions</h2><p><strong>Wall Street analysts</strong> are strongly optimistic about GOOG’s stock, with a &#34;Strong Buy&#34; rating overall. Among 50 analysts covering the stock, 39 recommend &#34;Strong Buy,&#34; three indicate “Moderate Buy,” and eight suggest “Hold.” This configuration is slightly more bullish than three months ago, with 38 analysts suggesting a “Strong Buy.”</p><p><strong>Jay Woods</strong>, global strategist at Freedom Capital Markets, said Wall Street’s line of questioning for Big Tech could shift from spending on AI toward the results as Alphabet and Amazon try to increase usage of assistants like Gemini and Rufus.</p><p><strong>Vulcan Value Partners</strong> stated the following regarding Alphabet Inc. in its Q4 2024 investor letter:“Alphabet delivered strong results during the third quarter. In particular, Google Cloud revenue grew 35% during the period and the segment’s margins expanded materially. Disruption risks to core search from generative AI have not completely abated, but Alphabet’s technical prowess and historical investments in leading technologies are becoming more apparent. We continue to monitor the antitrust cases against the company, and we will follow our discipline as we receive more information.&#34;</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Google Q4 Earnings Preview: Capex in Focus as LLMs Power Search, Cloud</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGoogle Q4 Earnings Preview: Capex in Focus as LLMs Power Search, Cloud\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2025-01-21 17:45</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><blockquote><p>According to data compiled by Bloomberg, analysts project around $96.61 billion in Q4 revenue and $2.12 in adjusted EPS, reflecting a 12% and 29% YoY increase, respectively.</p></blockquote><p><a href=\"https://ttm.financial/S/GOOGL\" title=\"Alphabet\" class=\"\">Alphabet</a> is set to release its fourth-quarter earnings report on Feb 4 after the market closes.</p><h2 id=\"id_1358305931\" style=\"text-align: left;\">Previous Quarter Review</h2><p>Google parent Alphabet reported third-quarter earnings that beat on top and bottom lines with strong revenue growth from the company’s cloud unit.</p><ul style=\"\"><li><p><strong>Earnings per share:</strong> $2.12 vs. $1.85 expected by LSEG</p></li><li><p><strong>Revenue: </strong>$88.27 billion vs.<strong> </strong>$86.30 billion expected by LSEG</p></li></ul><p style=\"text-align: start;\">Here are other numbers Wall Street was watching:</p><ul style=\"\"><li><p><strong>YouTube advertising revenue</strong>: $8.92 billion vs. $8.89 billion, according to StreetAccount</p></li><li><p><strong>Google Cloud revenue: </strong>$11.35 billion<strong> </strong>vs.<strong> </strong>$10.88 billion, according to StreetAccount</p></li><li><p><strong>Traffic acquisition costs (TAC)</strong>: $13.72 billion vs. $13.53 billion, according to StreetAccount</p></li></ul><p style=\"text-align: start;\">Alphabet’s revenue grew 15% year over year, which is stronger than the same quarter last year.</p><p style=\"text-align: start;\">The company reported blowout cloud revenue at $11.35 billion, up nearly 35% from the $8.41 billion a year ago. The company attributed its strong cloud results to its artificial intelligence offerings, which include subscriptions for enterprise customers.</p><h2 id=\"id_2617719276\" style=\"text-align: left;\">Q4 Results Outlook</h2><p>Google Cloud sequential growth could continue at a high single-digit pace due to traction with enterprises deploying AI use cases on Vertex. Alphabet&#39;s 2025 capex forecast will be key on the 4Q call, given Microsoft&#39;s view of $80 billion in AI spending this year.</p><p>Search will likely be aided by robust holiday ad spending, despite competitive pressures from rivals such as ChatGPT, Claude and Perplexity.</p><p>While uncertainty remains around the DoJ&#39;s proposed divestiture of Chrome, the integration of Gemini LLM with its Android OS, TV and smartphones could offset the risk outside of desktops.</p><p>YouTube subscription growth may stay above 20% with possible gains from a TikTok ban.</p><p>Waymo&#39;s Uber pact and expansion in more cities suggest an inflection in the segment&#39;s contribution to top-line growth. Currency could be a slight headwind.</p><h2 id=\"id_627001891\">Analyst Opinions</h2><p><strong>Wall Street analysts</strong> are strongly optimistic about GOOG’s stock, with a &#34;Strong Buy&#34; rating overall. Among 50 analysts covering the stock, 39 recommend &#34;Strong Buy,&#34; three indicate “Moderate Buy,” and eight suggest “Hold.” This configuration is slightly more bullish than three months ago, with 38 analysts suggesting a “Strong Buy.”</p><p><strong>Jay Woods</strong>, global strategist at Freedom Capital Markets, said Wall Street’s line of questioning for Big Tech could shift from spending on AI toward the results as Alphabet and Amazon try to increase usage of assistants like Gemini and Rufus.</p><p><strong>Vulcan Value Partners</strong> stated the following regarding Alphabet Inc. in its Q4 2024 investor letter:“Alphabet delivered strong results during the third quarter. In particular, Google Cloud revenue grew 35% during the period and the segment’s margins expanded materially. Disruption risks to core search from generative AI have not completely abated, but Alphabet’s technical prowess and historical investments in leading technologies are becoming more apparent. We continue to monitor the antitrust cases against the company, and we will follow our discipline as we receive more information.&#34;</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"GOOGL":"谷歌A","GOOG":"谷歌"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1118665035","content_text":"According to data compiled by Bloomberg, analysts project around $96.61 billion in Q4 revenue and $2.12 in adjusted EPS, reflecting a 12% and 29% YoY increase, respectively.Alphabet is set to release its fourth-quarter earnings report on Feb 4 after the market closes.Previous Quarter ReviewGoogle parent Alphabet reported third-quarter earnings that beat on top and bottom lines with strong revenue growth from the company’s cloud unit.Earnings per share: $2.12 vs. $1.85 expected by LSEGRevenue: $88.27 billion vs. $86.30 billion expected by LSEGHere are other numbers Wall Street was watching:YouTube advertising revenue: $8.92 billion vs. $8.89 billion, according to StreetAccountGoogle Cloud revenue: $11.35 billion vs. $10.88 billion, according to StreetAccountTraffic acquisition costs (TAC): $13.72 billion vs. $13.53 billion, according to StreetAccountAlphabet’s revenue grew 15% year over year, which is stronger than the same quarter last year.The company reported blowout cloud revenue at $11.35 billion, up nearly 35% from the $8.41 billion a year ago. The company attributed its strong cloud results to its artificial intelligence offerings, which include subscriptions for enterprise customers.Q4 Results OutlookGoogle Cloud sequential growth could continue at a high single-digit pace due to traction with enterprises deploying AI use cases on Vertex. Alphabet's 2025 capex forecast will be key on the 4Q call, given Microsoft's view of $80 billion in AI spending this year.Search will likely be aided by robust holiday ad spending, despite competitive pressures from rivals such as ChatGPT, Claude and Perplexity.While uncertainty remains around the DoJ's proposed divestiture of Chrome, the integration of Gemini LLM with its Android OS, TV and smartphones could offset the risk outside of desktops.YouTube subscription growth may stay above 20% with possible gains from a TikTok ban.Waymo's Uber pact and expansion in more cities suggest an inflection in the segment's contribution to top-line growth. Currency could be a slight headwind.Analyst OpinionsWall Street analysts are strongly optimistic about GOOG’s stock, with a \"Strong Buy\" rating overall. Among 50 analysts covering the stock, 39 recommend \"Strong Buy,\" three indicate “Moderate Buy,” and eight suggest “Hold.” This configuration is slightly more bullish than three months ago, with 38 analysts suggesting a “Strong Buy.”Jay Woods, global strategist at Freedom Capital Markets, said Wall Street’s line of questioning for Big Tech could shift from spending on AI toward the results as Alphabet and Amazon try to increase usage of assistants like Gemini and Rufus.Vulcan Value Partners stated the following regarding Alphabet Inc. in its Q4 2024 investor letter:“Alphabet delivered strong results during the third quarter. In particular, Google Cloud revenue grew 35% during the period and the segment’s margins expanded materially. Disruption risks to core search from generative AI have not completely abated, but Alphabet’s technical prowess and historical investments in leading technologies are becoming more apparent. We continue to monitor the antitrust cases against the company, and we will follow our discipline as we receive more information.\"","news_type":1,"symbols_score_info":{"GOOGL":1.1,"GOOG":1.1}},"isVote":1,"tweetType":1,"viewCount":953,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":398814924247704,"gmtCreate":1738391959518,"gmtModify":1738391963248,"author":{"id":"4201061858351912","authorId":"4201061858351912","name":"Widraw","avatar":"https://community-static.tradeup.com/news/dfead61c8f4e8ef924f983b493e29683","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4201061858351912","idStr":"4201061858351912"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/398814924247704","repostId":"2508496297","repostType":2,"isVote":1,"tweetType":1,"viewCount":664,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"hots":[{"id":398903166845144,"gmtCreate":1738413600771,"gmtModify":1738416786183,"author":{"id":"4201061858351912","authorId":"4201061858351912","name":"Widraw","avatar":"https://community-static.tradeup.com/news/dfead61c8f4e8ef924f983b493e29683","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4201061858351912","idStr":"4201061858351912"},"themes":[],"title":"Help Center - Tiger Brokers","htmlText":"Find out more here: <a href=\"https://www.gotigerhk.com/hk/en/help/detail/34490240?utm_source=help_center&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=2a76ad76deca20e973467842c13472a9&amp;invite=8OWIS9&amp;lang=en_US\">Help Center - Tiger Broker</a><a href=\"https://ttm.financial/S/NVDA\">$NVIDIA(NVDA)$&nbsp;</a>&nbsp; Tiger Brokers is a company listed on NASDAQ. With U.S. licenses, it has become the platform of choice for global Chinese investors to trade in the U.S. and Hong Kong. Investors can easily open accounts online with Tiger Brokers.","listText":"Find out more here: <a href=\"https://www.gotigerhk.com/hk/en/help/detail/34490240?utm_source=help_center&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=2a76ad76deca20e973467842c13472a9&amp;invite=8OWIS9&amp;lang=en_US\">Help Center - Tiger Broker</a><a href=\"https://ttm.financial/S/NVDA\">$NVIDIA(NVDA)$&nbsp;</a>&nbsp; Tiger Brokers is a company listed on NASDAQ. With U.S. licenses, it has become the platform of choice for global Chinese investors to trade in the U.S. and Hong Kong. Investors can easily open accounts online with Tiger Brokers.","text":"Find out more here: Help Center - Tiger Broker$NVIDIA(NVDA)$ Tiger Brokers is a company listed on NASDAQ. With U.S. licenses, it has become the platform of choice for global Chinese investors to trade in the U.S. and Hong Kong. Investors can easily open accounts online with Tiger Brokers.","images":[{"img":"https://static.tigerbbs.com/ff98eccfaff055c5a7c86bee57069e0c"}],"top":1,"highlighted":1,"essential":1,"paper":2,"likeSize":1,"commentSize":1,"repostSize":1,"link":"https://ttm.financial/post/398903166845144","isVote":1,"tweetType":1,"viewCount":3432,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":398562316464520,"gmtCreate":1738330471980,"gmtModify":1738330476730,"author":{"id":"4201061858351912","authorId":"4201061858351912","name":"Widraw","avatar":"https://community-static.tradeup.com/news/dfead61c8f4e8ef924f983b493e29683","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4201061858351912","idStr":"4201061858351912"},"themes":[],"htmlText":"Share your opinion about this news…","listText":"Share your opinion about this news…","text":"Share your opinion about this news…","images":[{"img":"https://community-static.tradeup.com/news/a68c8248ad417f64c94c43b8009c5411"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/398562316464520","repostId":"1167488288","repostType":2,"repost":{"id":"1167488288","kind":"news","weMediaInfo":{"introduction":"Reuters.com brings you the latest news from around the world, covering breaking news in markets, business, politics, entertainment and technology","home_visible":1,"media_name":"Reuters","id":"1032215980","head_image":"https://community-static.tradeup.com/news/4567337cbdf294b657b1fa87c5488b48"},"pubTimestamp":1738331857,"share":"https://ttm.financial/m/news/1167488288?lang=en_US&edition=fundamental","pubTime":"2025-01-31 21:57","market":"us","language":"en","title":"US Inflation Rises in December; Consumer Spending Accelerates","url":"https://stock-news.laohu8.com/highlight/detail?id=1167488288","media":"Reuters","summary":"US December Core PCE Price Index YoY +2.8% (Est. +2.8%, Prior +2.8%)","content":"<html><head></head><body><p><strong>Summary</strong></p><ul style=\"\"><li><p>Core inflation rose 2.8% year-on-year in December as forecast</p></li><li><p>Consumer spending surged 0.7% in December, boosting economic growth</p></li><li><p>Fed could delay rate cuts for a while this year</p></li></ul><p>WASHINGTON, Jan 31 (Reuters) - U.S. prices increased in December while consumer spending surged, suggesting that the Federal Reserve could delay cutting interest rates for some time this year.</p><p>The personal consumption expenditures (PCE) price index rose 0.3% last month after an unrevised 0.1% gain in November, the Commerce Department&#39;s Bureau of Economic Analysis said on Friday. Economists polled by Reuters had forecast the PCE price index climbing 0.3%. In the 12 months through December, the PCE price index advanced 2.6% after rising 2.4% in November.</p><p>The data was included in the advance gross domestic product report for the fourth quarter published on Thursday, which showed price pressures picking up in the final three months of the year against the backdrop of robust consumer spending.</p><p>The U.S. central bank tracks the PCE price measures for monetary policy. The Fed on Wednesday left its benchmark overnight interest rate in the 4.25%-4.50% range, having reduced it by 100 basis points since September when it started its policy easing cycle.</p><p>The accompanying policy statement did not include the reference to inflation having &#34;made progress&#34; toward the Fed&#39;s 2% target. No rate cut is expected before June.</p><p>Excluding the volatile food and energy components, the PCE price index rose 0.2% last month after an unrevised 0.1% increase in November.</p><p>In the 12 months through December, the so-called core inflation advanced 2.8% after increasing 2.8% in November.</p><p>The Fed has forecast only two rate cuts this year, down from the four it had projected in September. That reflected uncertainty on the economic impact of President Donald Trump&#39;s plans for tax cuts, broad tariffs on imports and an immigration crackdown, which economists view as inflationary.</p><p>Fears over tariffs have sent consumers rushing to stock up on goods to avoid higher prices.</p><p>That has helped to power consumer spending, which notched its fastest growth pace in nearly two years in the fourth quarter, sustaining the economic expansion. Economists expect pre-emptive buying continued in January.</p><p>Consumer spending, which accounts for more than two-thirds of U.S. economic activity, jumped 0.7% in December after an upwardly revised 0.6% rise in November. Spending was previously reported to have gained 0.4% in November.</p><p>The economy grew at a 2.3% annualized rate in the fourth quarter as the surge in consumer spending offset drags from inventories almost being depleted and a strike at Boeing in the autumn weighing on business spending on equipment.</p><p>Strong consumer spending last month sets the economy on a higher growth trajectory heading into the first quarter.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>US Inflation Rises in December; Consumer Spending Accelerates</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nUS Inflation Rises in December; Consumer Spending Accelerates\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1032215980\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://community-static.tradeup.com/news/4567337cbdf294b657b1fa87c5488b48);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Reuters </p>\n<p class=\"h-time\">2025-01-31 21:57</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p><strong>Summary</strong></p><ul style=\"\"><li><p>Core inflation rose 2.8% year-on-year in December as forecast</p></li><li><p>Consumer spending surged 0.7% in December, boosting economic growth</p></li><li><p>Fed could delay rate cuts for a while this year</p></li></ul><p>WASHINGTON, Jan 31 (Reuters) - U.S. prices increased in December while consumer spending surged, suggesting that the Federal Reserve could delay cutting interest rates for some time this year.</p><p>The personal consumption expenditures (PCE) price index rose 0.3% last month after an unrevised 0.1% gain in November, the Commerce Department&#39;s Bureau of Economic Analysis said on Friday. Economists polled by Reuters had forecast the PCE price index climbing 0.3%. In the 12 months through December, the PCE price index advanced 2.6% after rising 2.4% in November.</p><p>The data was included in the advance gross domestic product report for the fourth quarter published on Thursday, which showed price pressures picking up in the final three months of the year against the backdrop of robust consumer spending.</p><p>The U.S. central bank tracks the PCE price measures for monetary policy. The Fed on Wednesday left its benchmark overnight interest rate in the 4.25%-4.50% range, having reduced it by 100 basis points since September when it started its policy easing cycle.</p><p>The accompanying policy statement did not include the reference to inflation having &#34;made progress&#34; toward the Fed&#39;s 2% target. No rate cut is expected before June.</p><p>Excluding the volatile food and energy components, the PCE price index rose 0.2% last month after an unrevised 0.1% increase in November.</p><p>In the 12 months through December, the so-called core inflation advanced 2.8% after increasing 2.8% in November.</p><p>The Fed has forecast only two rate cuts this year, down from the four it had projected in September. That reflected uncertainty on the economic impact of President Donald Trump&#39;s plans for tax cuts, broad tariffs on imports and an immigration crackdown, which economists view as inflationary.</p><p>Fears over tariffs have sent consumers rushing to stock up on goods to avoid higher prices.</p><p>That has helped to power consumer spending, which notched its fastest growth pace in nearly two years in the fourth quarter, sustaining the economic expansion. Economists expect pre-emptive buying continued in January.</p><p>Consumer spending, which accounts for more than two-thirds of U.S. economic activity, jumped 0.7% in December after an upwardly revised 0.6% rise in November. Spending was previously reported to have gained 0.4% in November.</p><p>The economy grew at a 2.3% annualized rate in the fourth quarter as the surge in consumer spending offset drags from inventories almost being depleted and a strike at Boeing in the autumn weighing on business spending on equipment.</p><p>Strong consumer spending last month sets the economy on a higher growth trajectory heading into the first quarter.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index",".DJI":"道琼斯"},"source_url":"https://www.bloomberg.com/news/articles/2025-01-31/fed-s-favored-inflation-gauge-posted-muted-advance-in-december","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1167488288","content_text":"SummaryCore inflation rose 2.8% year-on-year in December as forecastConsumer spending surged 0.7% in December, boosting economic growthFed could delay rate cuts for a while this yearWASHINGTON, Jan 31 (Reuters) - U.S. prices increased in December while consumer spending surged, suggesting that the Federal Reserve could delay cutting interest rates for some time this year.The personal consumption expenditures (PCE) price index rose 0.3% last month after an unrevised 0.1% gain in November, the Commerce Department's Bureau of Economic Analysis said on Friday. Economists polled by Reuters had forecast the PCE price index climbing 0.3%. In the 12 months through December, the PCE price index advanced 2.6% after rising 2.4% in November.The data was included in the advance gross domestic product report for the fourth quarter published on Thursday, which showed price pressures picking up in the final three months of the year against the backdrop of robust consumer spending.The U.S. central bank tracks the PCE price measures for monetary policy. The Fed on Wednesday left its benchmark overnight interest rate in the 4.25%-4.50% range, having reduced it by 100 basis points since September when it started its policy easing cycle.The accompanying policy statement did not include the reference to inflation having \"made progress\" toward the Fed's 2% target. No rate cut is expected before June.Excluding the volatile food and energy components, the PCE price index rose 0.2% last month after an unrevised 0.1% increase in November.In the 12 months through December, the so-called core inflation advanced 2.8% after increasing 2.8% in November.The Fed has forecast only two rate cuts this year, down from the four it had projected in September. That reflected uncertainty on the economic impact of President Donald Trump's plans for tax cuts, broad tariffs on imports and an immigration crackdown, which economists view as inflationary.Fears over tariffs have sent consumers rushing to stock up on goods to avoid higher prices.That has helped to power consumer spending, which notched its fastest growth pace in nearly two years in the fourth quarter, sustaining the economic expansion. Economists expect pre-emptive buying continued in January.Consumer spending, which accounts for more than two-thirds of U.S. economic activity, jumped 0.7% in December after an upwardly revised 0.6% rise in November. Spending was previously reported to have gained 0.4% in November.The economy grew at a 2.3% annualized rate in the fourth quarter as the surge in consumer spending offset drags from inventories almost being depleted and a strike at Boeing in the autumn weighing on business spending on equipment.Strong consumer spending last month sets the economy on a higher growth trajectory heading into the first quarter.","news_type":1,"symbols_score_info":{".IXIC":1.1,".SPX":1.1,".DJI":1.1}},"isVote":1,"tweetType":1,"viewCount":570,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":398823765901712,"gmtCreate":1738394017764,"gmtModify":1738396954793,"author":{"id":"4201061858351912","authorId":"4201061858351912","name":"Widraw","avatar":"https://community-static.tradeup.com/news/dfead61c8f4e8ef924f983b493e29683","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4201061858351912","idStr":"4201061858351912"},"themes":[],"htmlText":"https://tigr.link/s/50AForP","listText":"https://tigr.link/s/50AForP","text":"https://tigr.link/s/50AForP","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/398823765901712","repostId":"1118665035","repostType":2,"repost":{"id":"1118665035","kind":"news","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1737452731,"share":"https://ttm.financial/m/news/1118665035?lang=en_US&edition=fundamental","pubTime":"2025-01-21 17:45","market":"us","language":"en","title":"Google Q4 Earnings Preview: Capex in Focus as LLMs Power Search, Cloud","url":"https://stock-news.laohu8.com/highlight/detail?id=1118665035","media":"Tiger Newspress","summary":"According to data compiled by Bloomberg, analysts project around $96.61 billion in Q4 revenue and $2.12 in adjusted EPS, reflecting a 12% and 29% YoY increase, respectively.Alphabet is set to release ","content":"<html><head></head><body><blockquote><p>According to data compiled by Bloomberg, analysts project around $96.61 billion in Q4 revenue and $2.12 in adjusted EPS, reflecting a 12% and 29% YoY increase, respectively.</p></blockquote><p><a href=\"https://ttm.financial/S/GOOGL\" title=\"Alphabet\" class=\"\">Alphabet</a> is set to release its fourth-quarter earnings report on Feb 4 after the market closes.</p><h2 id=\"id_1358305931\" style=\"text-align: left;\">Previous Quarter Review</h2><p>Google parent Alphabet reported third-quarter earnings that beat on top and bottom lines with strong revenue growth from the company’s cloud unit.</p><ul style=\"\"><li><p><strong>Earnings per share:</strong> $2.12 vs. $1.85 expected by LSEG</p></li><li><p><strong>Revenue: </strong>$88.27 billion vs.<strong> </strong>$86.30 billion expected by LSEG</p></li></ul><p style=\"text-align: start;\">Here are other numbers Wall Street was watching:</p><ul style=\"\"><li><p><strong>YouTube advertising revenue</strong>: $8.92 billion vs. $8.89 billion, according to StreetAccount</p></li><li><p><strong>Google Cloud revenue: </strong>$11.35 billion<strong> </strong>vs.<strong> </strong>$10.88 billion, according to StreetAccount</p></li><li><p><strong>Traffic acquisition costs (TAC)</strong>: $13.72 billion vs. $13.53 billion, according to StreetAccount</p></li></ul><p style=\"text-align: start;\">Alphabet’s revenue grew 15% year over year, which is stronger than the same quarter last year.</p><p style=\"text-align: start;\">The company reported blowout cloud revenue at $11.35 billion, up nearly 35% from the $8.41 billion a year ago. The company attributed its strong cloud results to its artificial intelligence offerings, which include subscriptions for enterprise customers.</p><h2 id=\"id_2617719276\" style=\"text-align: left;\">Q4 Results Outlook</h2><p>Google Cloud sequential growth could continue at a high single-digit pace due to traction with enterprises deploying AI use cases on Vertex. Alphabet&#39;s 2025 capex forecast will be key on the 4Q call, given Microsoft&#39;s view of $80 billion in AI spending this year.</p><p>Search will likely be aided by robust holiday ad spending, despite competitive pressures from rivals such as ChatGPT, Claude and Perplexity.</p><p>While uncertainty remains around the DoJ&#39;s proposed divestiture of Chrome, the integration of Gemini LLM with its Android OS, TV and smartphones could offset the risk outside of desktops.</p><p>YouTube subscription growth may stay above 20% with possible gains from a TikTok ban.</p><p>Waymo&#39;s Uber pact and expansion in more cities suggest an inflection in the segment&#39;s contribution to top-line growth. Currency could be a slight headwind.</p><h2 id=\"id_627001891\">Analyst Opinions</h2><p><strong>Wall Street analysts</strong> are strongly optimistic about GOOG’s stock, with a &#34;Strong Buy&#34; rating overall. Among 50 analysts covering the stock, 39 recommend &#34;Strong Buy,&#34; three indicate “Moderate Buy,” and eight suggest “Hold.” This configuration is slightly more bullish than three months ago, with 38 analysts suggesting a “Strong Buy.”</p><p><strong>Jay Woods</strong>, global strategist at Freedom Capital Markets, said Wall Street’s line of questioning for Big Tech could shift from spending on AI toward the results as Alphabet and Amazon try to increase usage of assistants like Gemini and Rufus.</p><p><strong>Vulcan Value Partners</strong> stated the following regarding Alphabet Inc. in its Q4 2024 investor letter:“Alphabet delivered strong results during the third quarter. In particular, Google Cloud revenue grew 35% during the period and the segment’s margins expanded materially. Disruption risks to core search from generative AI have not completely abated, but Alphabet’s technical prowess and historical investments in leading technologies are becoming more apparent. We continue to monitor the antitrust cases against the company, and we will follow our discipline as we receive more information.&#34;</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Google Q4 Earnings Preview: Capex in Focus as LLMs Power Search, Cloud</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGoogle Q4 Earnings Preview: Capex in Focus as LLMs Power Search, Cloud\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2025-01-21 17:45</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><blockquote><p>According to data compiled by Bloomberg, analysts project around $96.61 billion in Q4 revenue and $2.12 in adjusted EPS, reflecting a 12% and 29% YoY increase, respectively.</p></blockquote><p><a href=\"https://ttm.financial/S/GOOGL\" title=\"Alphabet\" class=\"\">Alphabet</a> is set to release its fourth-quarter earnings report on Feb 4 after the market closes.</p><h2 id=\"id_1358305931\" style=\"text-align: left;\">Previous Quarter Review</h2><p>Google parent Alphabet reported third-quarter earnings that beat on top and bottom lines with strong revenue growth from the company’s cloud unit.</p><ul style=\"\"><li><p><strong>Earnings per share:</strong> $2.12 vs. $1.85 expected by LSEG</p></li><li><p><strong>Revenue: </strong>$88.27 billion vs.<strong> </strong>$86.30 billion expected by LSEG</p></li></ul><p style=\"text-align: start;\">Here are other numbers Wall Street was watching:</p><ul style=\"\"><li><p><strong>YouTube advertising revenue</strong>: $8.92 billion vs. $8.89 billion, according to StreetAccount</p></li><li><p><strong>Google Cloud revenue: </strong>$11.35 billion<strong> </strong>vs.<strong> </strong>$10.88 billion, according to StreetAccount</p></li><li><p><strong>Traffic acquisition costs (TAC)</strong>: $13.72 billion vs. $13.53 billion, according to StreetAccount</p></li></ul><p style=\"text-align: start;\">Alphabet’s revenue grew 15% year over year, which is stronger than the same quarter last year.</p><p style=\"text-align: start;\">The company reported blowout cloud revenue at $11.35 billion, up nearly 35% from the $8.41 billion a year ago. The company attributed its strong cloud results to its artificial intelligence offerings, which include subscriptions for enterprise customers.</p><h2 id=\"id_2617719276\" style=\"text-align: left;\">Q4 Results Outlook</h2><p>Google Cloud sequential growth could continue at a high single-digit pace due to traction with enterprises deploying AI use cases on Vertex. Alphabet&#39;s 2025 capex forecast will be key on the 4Q call, given Microsoft&#39;s view of $80 billion in AI spending this year.</p><p>Search will likely be aided by robust holiday ad spending, despite competitive pressures from rivals such as ChatGPT, Claude and Perplexity.</p><p>While uncertainty remains around the DoJ&#39;s proposed divestiture of Chrome, the integration of Gemini LLM with its Android OS, TV and smartphones could offset the risk outside of desktops.</p><p>YouTube subscription growth may stay above 20% with possible gains from a TikTok ban.</p><p>Waymo&#39;s Uber pact and expansion in more cities suggest an inflection in the segment&#39;s contribution to top-line growth. Currency could be a slight headwind.</p><h2 id=\"id_627001891\">Analyst Opinions</h2><p><strong>Wall Street analysts</strong> are strongly optimistic about GOOG’s stock, with a &#34;Strong Buy&#34; rating overall. Among 50 analysts covering the stock, 39 recommend &#34;Strong Buy,&#34; three indicate “Moderate Buy,” and eight suggest “Hold.” This configuration is slightly more bullish than three months ago, with 38 analysts suggesting a “Strong Buy.”</p><p><strong>Jay Woods</strong>, global strategist at Freedom Capital Markets, said Wall Street’s line of questioning for Big Tech could shift from spending on AI toward the results as Alphabet and Amazon try to increase usage of assistants like Gemini and Rufus.</p><p><strong>Vulcan Value Partners</strong> stated the following regarding Alphabet Inc. in its Q4 2024 investor letter:“Alphabet delivered strong results during the third quarter. In particular, Google Cloud revenue grew 35% during the period and the segment’s margins expanded materially. Disruption risks to core search from generative AI have not completely abated, but Alphabet’s technical prowess and historical investments in leading technologies are becoming more apparent. We continue to monitor the antitrust cases against the company, and we will follow our discipline as we receive more information.&#34;</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"GOOGL":"谷歌A","GOOG":"谷歌"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1118665035","content_text":"According to data compiled by Bloomberg, analysts project around $96.61 billion in Q4 revenue and $2.12 in adjusted EPS, reflecting a 12% and 29% YoY increase, respectively.Alphabet is set to release its fourth-quarter earnings report on Feb 4 after the market closes.Previous Quarter ReviewGoogle parent Alphabet reported third-quarter earnings that beat on top and bottom lines with strong revenue growth from the company’s cloud unit.Earnings per share: $2.12 vs. $1.85 expected by LSEGRevenue: $88.27 billion vs. $86.30 billion expected by LSEGHere are other numbers Wall Street was watching:YouTube advertising revenue: $8.92 billion vs. $8.89 billion, according to StreetAccountGoogle Cloud revenue: $11.35 billion vs. $10.88 billion, according to StreetAccountTraffic acquisition costs (TAC): $13.72 billion vs. $13.53 billion, according to StreetAccountAlphabet’s revenue grew 15% year over year, which is stronger than the same quarter last year.The company reported blowout cloud revenue at $11.35 billion, up nearly 35% from the $8.41 billion a year ago. The company attributed its strong cloud results to its artificial intelligence offerings, which include subscriptions for enterprise customers.Q4 Results OutlookGoogle Cloud sequential growth could continue at a high single-digit pace due to traction with enterprises deploying AI use cases on Vertex. Alphabet's 2025 capex forecast will be key on the 4Q call, given Microsoft's view of $80 billion in AI spending this year.Search will likely be aided by robust holiday ad spending, despite competitive pressures from rivals such as ChatGPT, Claude and Perplexity.While uncertainty remains around the DoJ's proposed divestiture of Chrome, the integration of Gemini LLM with its Android OS, TV and smartphones could offset the risk outside of desktops.YouTube subscription growth may stay above 20% with possible gains from a TikTok ban.Waymo's Uber pact and expansion in more cities suggest an inflection in the segment's contribution to top-line growth. Currency could be a slight headwind.Analyst OpinionsWall Street analysts are strongly optimistic about GOOG’s stock, with a \"Strong Buy\" rating overall. Among 50 analysts covering the stock, 39 recommend \"Strong Buy,\" three indicate “Moderate Buy,” and eight suggest “Hold.” This configuration is slightly more bullish than three months ago, with 38 analysts suggesting a “Strong Buy.”Jay Woods, global strategist at Freedom Capital Markets, said Wall Street’s line of questioning for Big Tech could shift from spending on AI toward the results as Alphabet and Amazon try to increase usage of assistants like Gemini and Rufus.Vulcan Value Partners stated the following regarding Alphabet Inc. in its Q4 2024 investor letter:“Alphabet delivered strong results during the third quarter. In particular, Google Cloud revenue grew 35% during the period and the segment’s margins expanded materially. Disruption risks to core search from generative AI have not completely abated, but Alphabet’s technical prowess and historical investments in leading technologies are becoming more apparent. We continue to monitor the antitrust cases against the company, and we will follow our discipline as we receive more information.\"","news_type":1,"symbols_score_info":{"GOOGL":1.1,"GOOG":1.1}},"isVote":1,"tweetType":1,"viewCount":606,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":399062197830128,"gmtCreate":1738452608438,"gmtModify":1738452612622,"author":{"id":"4201061858351912","authorId":"4201061858351912","name":"Widraw","avatar":"https://community-static.tradeup.com/news/dfead61c8f4e8ef924f983b493e29683","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4201061858351912","idStr":"4201061858351912"},"themes":[],"htmlText":"//<a href=\"https://ttm.financial/U/4101184982262530\">@TedCheung</a>: Great article. Shared good insights","listText":"//<a href=\"https://ttm.financial/U/4101184982262530\">@TedCheung</a>: Great article. Shared good insights","text":"//@TedCheung: Great article. Shared good insights","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/399062197830128","repostId":"2470801775","repostType":2,"repost":{"id":"2470801775","kind":"highlight","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1727527884,"share":"https://ttm.financial/m/news/2470801775?lang=en_US&edition=fundamental","pubTime":"2024-09-28 20:51","market":"other","language":"en","title":"AI Data Center Boom Spurs Race to Find Power","url":"https://stock-news.laohu8.com/highlight/detail?id=2470801775","media":"Dow Jones","summary":"By Jennifer Hiller | Photographs by Maddie McGarvey for WSJ. Tech companies scouring the country for electricity to power artificial intelligence are increasingly finding there is a waiting list.In many places the nation's high-voltage electric wires are running out of room, their connection points locked up by data centers for AI, new factories or charging infrastructure for electric vehicles.A mad dash to lock up available power has ensued.The tech industry is pinballing from one market to the next looking for places with the capacity to connect campuses that would consume up to a gigawatt of power -- about as much as San Francisco uses. Some requests are as much as four to five times as large as that.In Santa Clara, Calif., one of the tech industry's hometown utilities, Silicon Valley Power, has stopped taking requests for electric service for additional data centers. SVP said it faces transmission and power generation constraints that it can't solve until the early 2030s.AI arrives","content":"<html><head></head><body><p>Tech companies scouring the country for electricity to power artificial intelligence are increasingly finding there is a waiting list.</p><p>In many places the nation&#39;s high-voltage electric wires are running out of room, their connection points locked up by data centers for AI, new factories or charging infrastructure for electric vehicles.</p><p>A mad dash to lock up available power has ensued.</p><p>The tech industry is pinballing from one market to the next looking for places with the capacity to connect campuses that would consume up to a gigawatt of power -- about as much as San Francisco uses. Some requests are as much as four to five times as large as that.</p><p>But wires are getting so crowded that some prospective data center customers -- which request far more power than other users -- are being told they may have to wait until the next decade to get the power they are seeking. Others are receiving less power than they expected.</p><p>In Salt Lake City, there is a moratorium on larger power requests. The data center industry considers it closed for business.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/5b52b756643d19e36c770abb0766815e\" alt=\"2023 年数据中心占总电力消耗的份额\" title=\"2023 年数据中心占总电力消耗的份额\" tg-width=\"1400\" tg-height=\"856\"/><span>2023 年数据中心占总电力消耗的份额</span></p><p>In Santa Clara, Calif., one of the tech industry&#39;s hometown utilities, Silicon Valley Power, has stopped taking requests for electric service for additional data centers. SVP said it faces transmission and power generation constraints that it can&#39;t solve until the early 2030s.</p><p>In Virginia -- the world&#39;s largest data center market -- Dominion Energy said it is temporarily rationing power to some new data centers until new transmission lines can be finished, even as the utility adds around 15 data centers a year.</p><p>The growing pains are also sparking fights over how to pay for potentially billions of dollars in upgrades to the grid.</p><p>In central Ohio, the biggest power line in the Midwest will run out of transmission capacity in 2028. American Electric Power, which owns the line, has proposed a new, higher electricity rate for data centers and cryptocurrency miners that would lock them in as customers for a decade. The companies are balking.</p><p>&#34;The amount of infrastructure required to deliver on that is immense,&#34; said Marc Reitter, president and chief operating officer of AEP Ohio. &#34;We need certainty.&#34;</p><p>Thirst for power</p><p>AI is a fast-growing source of spending by tech companies that say they are on the cusp of the biggest boom since the internet, with implications for national security and the economy. But a search on a generative AI platform such as ChatGPT can use at least 10 times the amount of energy as a google search. Data centers could use as much as 9% of U.S. electricity by 2030, according to the Electric Power Research Institute.</p><p>AI arrives in tandem with other new strains on the grid: manufacturing plants spurred by tax policies under the Inflation Reduction Act, and a push in some states for more electric power for transportation, heat and heavy industry. It is the first meaningful demand growth this century for the electricity industry.</p><p>For example, Phoenix has become a key data center market and is in the midst of a manufacturing boom. Utility Arizona Public Service proposes building 800 miles of new transmission lines or upgrades in the next decade because its existing transmission capacity will be &#34;consumed&#34; before 2030.</p><p>Transmission constraints are the first pinch point that many utilities are flagging as those kinds of upgrades can take several years. But there are calls for added power generation. Goldman Sachs estimates around 47 gigawatts of new power generation capacity will be required to support U.S. data center power demand growth through 2030.</p><p>Analysts at Fitch Ratings say utilities also risk overestimating the demand from data centers and overbuilding, given the inconsistent ways that the industry tallies future demand.</p><p>Power for three New Yorks</p><p>In the heart of Ohio, American Electric Power&#39;s 765-kilovolt bulk transmission system provides a backbone of reliable power that has vacuumed in new data centers. The amount of electricity used in the region will roughly double by 2028, which AEP can accommodate.</p><p>After 2028, AEP says it has three New York Cities worth of data centers asking to connect to the grid, but no way to discern which are serious customers or just looky-loos shopping multiple markets. It halted new service requests from data centers more than a year ago.</p><p>AEP&#39;s Reitter said long-term contracts and higher rates would protect customers such as homeowners and other businesses in case the tech companies leave later.</p><p>Companies of all kinds are fighting the idea.</p><p>The Ohio Manufacturers&#39; Association wants a study on transmission constraints and opposes the AEP request because it would avoid the usual rate-making process, including studies that delve into the cost to provide new service.</p><p>Google argued in regulatory filings that it has invested $6.7 billion in data centers across central Ohio and wants state regulators to investigate the best ways to manage growth, handling any changes to rates in a formal rate case. The Data Center Coalition trade group, of which Google and other tech companies are members, suggested an eight-year minimum commitment, short of AEP&#39;s decadelong request.</p><p>The Ohio Consumers&#39; Counsel, meanwhile, has argued that residential customers &#34;should not be forced to subsidize utility investment to accommodate data centers operated by multibillion and trillion-dollar companies.&#34;</p><p>Akshat Kasliwal at PA Consulting Group, who advises tech and power companies, said AEP&#39;s conundrum is that it needs to invest in transmission to add more data centers. But if it charges higher rates to cover that cost, data centers might go elsewhere after the money has been spent, leaving other customers holding the bag.</p><p>Take-or-pay contracts</p><p>Other utilities are also looking at ways to shield customers from costly grid investments that data centers later decide they don&#39;t need.</p><p>Xcel Energy has a peak demand of around 22 gigawatts across its multistate system but around 6.7 gigawatts of new data center requests, largely in Colorado and Minnesota. Executives say the system will need transmission upgrades and new power generation, as well as a way to be fair to all customers.</p><p>Chief Financial Officer Brian Van Abel said in an August earnings call the company would consider things such as &#34;take-or-pay&#34; contracts that require data centers to pay for a minimum amount of power no matter how much is used.</p><p>Arizona Public Service tests a project&#39;s seriousness by telling new large customers it puts minimum thresholds on bills to cover the cost of needed investments.</p><p>&#34;Some customers may shy away from those commitments,&#34; said Ted Geisler, president of APS, &#34;and that&#39;s a good indicator to us that maybe they&#39;re not as committed yet as others.&#34;</p><p>Andy Cvengros, managing director with real-estate services firm JLL, said utilities are getting wise in the face of speculative requests for power from everyone, whether from farmers with land along a transmission line or private-equity investors. Requests don&#39;t always have solid projects with tenants behind them.</p><p>&#34;We have companies that didn&#39;t exist 24 months ago now asking for 100 megawatts of power,&#34; Cvengros said. &#34;What&#39;s the real demand?&#34;</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AI Data Center Boom Spurs Race to Find Power</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAI Data Center Boom Spurs Race to Find Power\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-09-28 20:51</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Tech companies scouring the country for electricity to power artificial intelligence are increasingly finding there is a waiting list.</p><p>In many places the nation&#39;s high-voltage electric wires are running out of room, their connection points locked up by data centers for AI, new factories or charging infrastructure for electric vehicles.</p><p>A mad dash to lock up available power has ensued.</p><p>The tech industry is pinballing from one market to the next looking for places with the capacity to connect campuses that would consume up to a gigawatt of power -- about as much as San Francisco uses. Some requests are as much as four to five times as large as that.</p><p>But wires are getting so crowded that some prospective data center customers -- which request far more power than other users -- are being told they may have to wait until the next decade to get the power they are seeking. Others are receiving less power than they expected.</p><p>In Salt Lake City, there is a moratorium on larger power requests. The data center industry considers it closed for business.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/5b52b756643d19e36c770abb0766815e\" alt=\"2023 年数据中心占总电力消耗的份额\" title=\"2023 年数据中心占总电力消耗的份额\" tg-width=\"1400\" tg-height=\"856\"/><span>2023 年数据中心占总电力消耗的份额</span></p><p>In Santa Clara, Calif., one of the tech industry&#39;s hometown utilities, Silicon Valley Power, has stopped taking requests for electric service for additional data centers. SVP said it faces transmission and power generation constraints that it can&#39;t solve until the early 2030s.</p><p>In Virginia -- the world&#39;s largest data center market -- Dominion Energy said it is temporarily rationing power to some new data centers until new transmission lines can be finished, even as the utility adds around 15 data centers a year.</p><p>The growing pains are also sparking fights over how to pay for potentially billions of dollars in upgrades to the grid.</p><p>In central Ohio, the biggest power line in the Midwest will run out of transmission capacity in 2028. American Electric Power, which owns the line, has proposed a new, higher electricity rate for data centers and cryptocurrency miners that would lock them in as customers for a decade. The companies are balking.</p><p>&#34;The amount of infrastructure required to deliver on that is immense,&#34; said Marc Reitter, president and chief operating officer of AEP Ohio. &#34;We need certainty.&#34;</p><p>Thirst for power</p><p>AI is a fast-growing source of spending by tech companies that say they are on the cusp of the biggest boom since the internet, with implications for national security and the economy. But a search on a generative AI platform such as ChatGPT can use at least 10 times the amount of energy as a google search. Data centers could use as much as 9% of U.S. electricity by 2030, according to the Electric Power Research Institute.</p><p>AI arrives in tandem with other new strains on the grid: manufacturing plants spurred by tax policies under the Inflation Reduction Act, and a push in some states for more electric power for transportation, heat and heavy industry. It is the first meaningful demand growth this century for the electricity industry.</p><p>For example, Phoenix has become a key data center market and is in the midst of a manufacturing boom. Utility Arizona Public Service proposes building 800 miles of new transmission lines or upgrades in the next decade because its existing transmission capacity will be &#34;consumed&#34; before 2030.</p><p>Transmission constraints are the first pinch point that many utilities are flagging as those kinds of upgrades can take several years. But there are calls for added power generation. Goldman Sachs estimates around 47 gigawatts of new power generation capacity will be required to support U.S. data center power demand growth through 2030.</p><p>Analysts at Fitch Ratings say utilities also risk overestimating the demand from data centers and overbuilding, given the inconsistent ways that the industry tallies future demand.</p><p>Power for three New Yorks</p><p>In the heart of Ohio, American Electric Power&#39;s 765-kilovolt bulk transmission system provides a backbone of reliable power that has vacuumed in new data centers. The amount of electricity used in the region will roughly double by 2028, which AEP can accommodate.</p><p>After 2028, AEP says it has three New York Cities worth of data centers asking to connect to the grid, but no way to discern which are serious customers or just looky-loos shopping multiple markets. It halted new service requests from data centers more than a year ago.</p><p>AEP&#39;s Reitter said long-term contracts and higher rates would protect customers such as homeowners and other businesses in case the tech companies leave later.</p><p>Companies of all kinds are fighting the idea.</p><p>The Ohio Manufacturers&#39; Association wants a study on transmission constraints and opposes the AEP request because it would avoid the usual rate-making process, including studies that delve into the cost to provide new service.</p><p>Google argued in regulatory filings that it has invested $6.7 billion in data centers across central Ohio and wants state regulators to investigate the best ways to manage growth, handling any changes to rates in a formal rate case. The Data Center Coalition trade group, of which Google and other tech companies are members, suggested an eight-year minimum commitment, short of AEP&#39;s decadelong request.</p><p>The Ohio Consumers&#39; Counsel, meanwhile, has argued that residential customers &#34;should not be forced to subsidize utility investment to accommodate data centers operated by multibillion and trillion-dollar companies.&#34;</p><p>Akshat Kasliwal at PA Consulting Group, who advises tech and power companies, said AEP&#39;s conundrum is that it needs to invest in transmission to add more data centers. But if it charges higher rates to cover that cost, data centers might go elsewhere after the money has been spent, leaving other customers holding the bag.</p><p>Take-or-pay contracts</p><p>Other utilities are also looking at ways to shield customers from costly grid investments that data centers later decide they don&#39;t need.</p><p>Xcel Energy has a peak demand of around 22 gigawatts across its multistate system but around 6.7 gigawatts of new data center requests, largely in Colorado and Minnesota. Executives say the system will need transmission upgrades and new power generation, as well as a way to be fair to all customers.</p><p>Chief Financial Officer Brian Van Abel said in an August earnings call the company would consider things such as &#34;take-or-pay&#34; contracts that require data centers to pay for a minimum amount of power no matter how much is used.</p><p>Arizona Public Service tests a project&#39;s seriousness by telling new large customers it puts minimum thresholds on bills to cover the cost of needed investments.</p><p>&#34;Some customers may shy away from those commitments,&#34; said Ted Geisler, president of APS, &#34;and that&#39;s a good indicator to us that maybe they&#39;re not as committed yet as others.&#34;</p><p>Andy Cvengros, managing director with real-estate services firm JLL, said utilities are getting wise in the face of speculative requests for power from everyone, whether from farmers with land along a transmission line or private-equity investors. Requests don&#39;t always have solid projects with tenants behind them.</p><p>&#34;We have companies that didn&#39;t exist 24 months ago now asking for 100 megawatts of power,&#34; Cvengros said. &#34;What&#39;s the real demand?&#34;</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4234":"特殊用途房地产信托","BK4084":"特种房地产投资信托",".IXIC":"NASDAQ Composite",".DJI":"道琼斯","BK6051":"信息科技咨询与其它服务",".SPX":"S&P 500 Index"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2470801775","content_text":"Tech companies scouring the country for electricity to power artificial intelligence are increasingly finding there is a waiting list.In many places the nation's high-voltage electric wires are running out of room, their connection points locked up by data centers for AI, new factories or charging infrastructure for electric vehicles.A mad dash to lock up available power has ensued.The tech industry is pinballing from one market to the next looking for places with the capacity to connect campuses that would consume up to a gigawatt of power -- about as much as San Francisco uses. Some requests are as much as four to five times as large as that.But wires are getting so crowded that some prospective data center customers -- which request far more power than other users -- are being told they may have to wait until the next decade to get the power they are seeking. Others are receiving less power than they expected.In Salt Lake City, there is a moratorium on larger power requests. The data center industry considers it closed for business.2023 年数据中心占总电力消耗的份额In Santa Clara, Calif., one of the tech industry's hometown utilities, Silicon Valley Power, has stopped taking requests for electric service for additional data centers. SVP said it faces transmission and power generation constraints that it can't solve until the early 2030s.In Virginia -- the world's largest data center market -- Dominion Energy said it is temporarily rationing power to some new data centers until new transmission lines can be finished, even as the utility adds around 15 data centers a year.The growing pains are also sparking fights over how to pay for potentially billions of dollars in upgrades to the grid.In central Ohio, the biggest power line in the Midwest will run out of transmission capacity in 2028. American Electric Power, which owns the line, has proposed a new, higher electricity rate for data centers and cryptocurrency miners that would lock them in as customers for a decade. The companies are balking.\"The amount of infrastructure required to deliver on that is immense,\" said Marc Reitter, president and chief operating officer of AEP Ohio. \"We need certainty.\"Thirst for powerAI is a fast-growing source of spending by tech companies that say they are on the cusp of the biggest boom since the internet, with implications for national security and the economy. But a search on a generative AI platform such as ChatGPT can use at least 10 times the amount of energy as a google search. Data centers could use as much as 9% of U.S. electricity by 2030, according to the Electric Power Research Institute.AI arrives in tandem with other new strains on the grid: manufacturing plants spurred by tax policies under the Inflation Reduction Act, and a push in some states for more electric power for transportation, heat and heavy industry. It is the first meaningful demand growth this century for the electricity industry.For example, Phoenix has become a key data center market and is in the midst of a manufacturing boom. Utility Arizona Public Service proposes building 800 miles of new transmission lines or upgrades in the next decade because its existing transmission capacity will be \"consumed\" before 2030.Transmission constraints are the first pinch point that many utilities are flagging as those kinds of upgrades can take several years. But there are calls for added power generation. Goldman Sachs estimates around 47 gigawatts of new power generation capacity will be required to support U.S. data center power demand growth through 2030.Analysts at Fitch Ratings say utilities also risk overestimating the demand from data centers and overbuilding, given the inconsistent ways that the industry tallies future demand.Power for three New YorksIn the heart of Ohio, American Electric Power's 765-kilovolt bulk transmission system provides a backbone of reliable power that has vacuumed in new data centers. The amount of electricity used in the region will roughly double by 2028, which AEP can accommodate.After 2028, AEP says it has three New York Cities worth of data centers asking to connect to the grid, but no way to discern which are serious customers or just looky-loos shopping multiple markets. It halted new service requests from data centers more than a year ago.AEP's Reitter said long-term contracts and higher rates would protect customers such as homeowners and other businesses in case the tech companies leave later.Companies of all kinds are fighting the idea.The Ohio Manufacturers' Association wants a study on transmission constraints and opposes the AEP request because it would avoid the usual rate-making process, including studies that delve into the cost to provide new service.Google argued in regulatory filings that it has invested $6.7 billion in data centers across central Ohio and wants state regulators to investigate the best ways to manage growth, handling any changes to rates in a formal rate case. The Data Center Coalition trade group, of which Google and other tech companies are members, suggested an eight-year minimum commitment, short of AEP's decadelong request.The Ohio Consumers' Counsel, meanwhile, has argued that residential customers \"should not be forced to subsidize utility investment to accommodate data centers operated by multibillion and trillion-dollar companies.\"Akshat Kasliwal at PA Consulting Group, who advises tech and power companies, said AEP's conundrum is that it needs to invest in transmission to add more data centers. But if it charges higher rates to cover that cost, data centers might go elsewhere after the money has been spent, leaving other customers holding the bag.Take-or-pay contractsOther utilities are also looking at ways to shield customers from costly grid investments that data centers later decide they don't need.Xcel Energy has a peak demand of around 22 gigawatts across its multistate system but around 6.7 gigawatts of new data center requests, largely in Colorado and Minnesota. Executives say the system will need transmission upgrades and new power generation, as well as a way to be fair to all customers.Chief Financial Officer Brian Van Abel said in an August earnings call the company would consider things such as \"take-or-pay\" contracts that require data centers to pay for a minimum amount of power no matter how much is used.Arizona Public Service tests a project's seriousness by telling new large customers it puts minimum thresholds on bills to cover the cost of needed investments.\"Some customers may shy away from those commitments,\" said Ted Geisler, president of APS, \"and that's a good indicator to us that maybe they're not as committed yet as others.\"Andy Cvengros, managing director with real-estate services firm JLL, said utilities are getting wise in the face of speculative requests for power from everyone, whether from farmers with land along a transmission line or private-equity investors. Requests don't always have solid projects with tenants behind them.\"We have companies that didn't exist 24 months ago now asking for 100 megawatts of power,\" Cvengros said. \"What's the real demand?\"","news_type":1,"symbols_score_info":{".SPX":1.1,".IXIC":1.1,".DJI":1.1}},"isVote":1,"tweetType":1,"viewCount":1735,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":399061946777760,"gmtCreate":1738452536949,"gmtModify":1738452538896,"author":{"id":"4201061858351912","authorId":"4201061858351912","name":"Widraw","avatar":"https://community-static.tradeup.com/news/dfead61c8f4e8ef924f983b493e29683","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4201061858351912","idStr":"4201061858351912"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/399061946777760","repostId":"9000980585","repostType":1,"repost":{"id":9000980585,"gmtCreate":1639726096304,"gmtModify":1733298571320,"author":{"id":"3527667618000160","authorId":"3527667618000160","name":"CaptainTiger","avatar":"https://static.tigerbbs.com/5d0e54b757b231beb8b11fd49de85317","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3527667618000160","idStr":"3527667618000160"},"themes":[],"title":"What is Editor's Pick & Criteria for receiving it","htmlText":"Hi&nbsp;Tigers!This is Captain Tiger, your most helpful friend in the Tiger Community!&nbsp;<a href=\"https://ttm.financial/TW/9000981648\" target=\"_blank\">Captain Tiger: Your most helpful friend in the Tiger Community</a>You may have seen many articles with a \"PICK\" sign in the front, which means it is an Editor's Pick. In simple words, the post has been viewed by the Tiger Community Team and has been recommended due to its high-quality content and analysis.Then you may wonder: how do Tigers benefit from getting an editor's pick?Well, before answering the question, I must introduce you to one thing: Tiger Coins, the virtual coins that you can use in the Tiger Community to redeem gifts such as souvenir Tigers, commission-free trading cards, stock vouchers, etc.. (Here&nbsp;the&nbsp;link&nbsp;","listText":"Hi&nbsp;Tigers!This is Captain Tiger, your most helpful friend in the Tiger Community!&nbsp;<a href=\"https://ttm.financial/TW/9000981648\" target=\"_blank\">Captain Tiger: Your most helpful friend in the Tiger Community</a>You may have seen many articles with a \"PICK\" sign in the front, which means it is an Editor's Pick. In simple words, the post has been viewed by the Tiger Community Team and has been recommended due to its high-quality content and analysis.Then you may wonder: how do Tigers benefit from getting an editor's pick?Well, before answering the question, I must introduce you to one thing: Tiger Coins, the virtual coins that you can use in the Tiger Community to redeem gifts such as souvenir Tigers, commission-free trading cards, stock vouchers, etc.. (Here&nbsp;the&nbsp;link&nbsp;","text":"Hi Tigers!This is Captain Tiger, your most helpful friend in the Tiger Community! Captain Tiger: Your most helpful friend in the Tiger CommunityYou may have seen many articles with a \"PICK\" sign in the front, which means it is an Editor's Pick. In simple words, the post has been viewed by the Tiger Community Team and has been recommended due to its high-quality content and analysis.Then you may wonder: how do Tigers benefit from getting an editor's pick?Well, before answering the question, I must introduce you to one thing: Tiger Coins, the virtual coins that you can use in the Tiger Community to redeem gifts such as souvenir Tigers, commission-free trading cards, stock vouchers, etc.. (Here the link","images":[{"img":"https://static.tigerbbs.com/f05da04faccffb281e410c2230d54cdd"},{"img":"https://static.tigerbbs.com/c6bcca8831fd6ca15324729d2322a267"},{"img":"https://static.tigerbbs.com/748be6f51f65a949086ea073dbeb6907"}],"top":1,"highlighted":1,"essential":2,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9000980585","isVote":1,"tweetType":1,"viewCount":0,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":8,"langContent":"EN","totalScore":0},"isVote":1,"tweetType":1,"viewCount":1815,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":399061329817688,"gmtCreate":1738452493021,"gmtModify":1738452496929,"author":{"id":"4201061858351912","authorId":"4201061858351912","name":"Widraw","avatar":"https://community-static.tradeup.com/news/dfead61c8f4e8ef924f983b493e29683","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4201061858351912","idStr":"4201061858351912"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/399061329817688","repostId":"1120625009","repostType":2,"repost":{"id":"1120625009","kind":"news","pubTimestamp":1738376556,"share":"https://ttm.financial/m/news/1120625009?lang=en_US&edition=fundamental","pubTime":"2025-02-01 10:22","market":"us","language":"en","title":"Nvidia: Why I Am Doubling Down On The DeepSeek Selloff","url":"https://stock-news.laohu8.com/highlight/detail?id=1120625009","media":"Seeking Alpha","summary":"Nvidia Corporation's stock dropped 17% due to DeepSeek's AI model, but this is a buying opportunity given Nvidia's strong sales and AI GPU demand.DeepSeek's cheaper AI model caused market fear, but Nv","content":"<html><head></head><body><ul style=\"\"><li><p>Nvidia Corporation&#39;s stock dropped 17% due to DeepSeek&#39;s AI model, but this is a buying opportunity given Nvidia&#39;s strong sales and AI GPU demand.</p></li><li><p>DeepSeek&#39;s cheaper AI model caused market fear, but Nvidia&#39;s advanced chips remain essential for U.S. companies, ensuring continued high demand.</p></li><li><p>Nvidia&#39;s sales surged 430% last year, and despite DeepSeek, its data center business and AI GPU demand will drive future growth.</p></li><li><p>Nvidia&#39;s profit multiple contraction is an overreaction; NVDA investors should capitalize on the current low price, as Nvidia remains a market leader.</p></li></ul><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/966eb37394e6456ae039ecc808cbe3c0\" alt=\"Nvidia Corporation building in Taipei, Taiwan.\" title=\"Nvidia Corporation building in Taipei, Taiwan.\" tg-width=\"750\" tg-height=\"500\"/><span>Nvidia Corporation building in Taipei, Taiwan.</span></p><p></p><p>The AI and semiconductor market has been thrown into turmoil this week by revelations made by Chinese artificial intelligence startup DeepSeek (DEEPSEEK) that is utilizing open-source technology to run large-language models.</p><p>The stock price of <strong>Nvidia Corporation (NVDA) </strong>tumbled 17% in response on Monday and dragged the entire semiconductor market down with it. I think that the market is reacting a bit hysterically here, and I consider the price correction for Nvidia to be a golden buying opportunity.</p><p>In my last piece on Nvidia, I made the case for the AI GPU king. I pointed to the company’s strong sales trajectory, growing demand for semiconductors that can handle AI workloads, as well as the opportunity for AI GPU cluster up-scaling.</p><p>The last reason, cluster up-scaling, relates to the growing numbers of GPUs that are (and will be) included by hyperscalers in clusters to train large-language models.</p><p>In my view, the DeepSeek controversy is an opportunity to use surging market fear to your advantage, and I think that the fundamental investment thesis for Nvidia is still pretty much intact.</p><h2 id=\"id_3768535198\">DeepSeek-Driven AI Crash Creates Opportunity</h2><p>Nvidia continues to see skyrocketing demand for its GPUs that are needed to train and run large-language models, or LLMs. These AI GPUs underpin chatbots like the ones developed by OpenAI, <strong>Meta Platforms Inc. (META),</strong> or Elon Musk’s X.</p><p>DeepSeek is an artificial intelligence startup in China that utilizes open-source technology and develops similar chatbots. The Chinese company made waves this week as the company revealed its chatbot, which apparently has been built at a cost of $6 million based on the open source DeepSeek-V3 model.</p><p>While the price tag has not yet been independently verified, as I understand it, the mere appearance of a potentially cheaper path to train large-language models has sent shockwaves through the markets earlier this week. A case in point is Nvidia, which lost $600 billion in market valuation just on the back of the DeepSeek news.</p><p>The fear here is that the AI market could now transition to a new kind of low-cost model that forces companies to downscale their AI investments. This would obviously be a setback for companies that have made aggressive wagers on GPUs, such as Nvidia.</p><p>According to the news, DeepSeek’s chatbot rivals OpenAI&#39;s ChatGPT or Meta&#39;s Llama 3.1 in terms of performance, with a main focus on possible cost savings. Tom’s Hardware illustrated that:</p><blockquote><p>DeepSeek trained its DeepSeek-V3 Mixture-of-Experts (MoE) language model with 671 billion parameters using a cluster containing 2,048 Nvidia H800 GPUs in just two months, which means 2.8 million GPU hours, according to its paper. For comparison, it took Meta 11 times more compute power (30.8 million GPU hours) to train its Llama 3 with 405 billion parameters using a cluster containing 16,384 H100 GPUs over the course of 54 days.</p></blockquote><p>The intrigue about DeepSeek’s R1 model is that it lowers computational costs related to each prompt. This means it could, possibly, offer a way for companies to train AI models by shortening training times as well as reducing the need for less compute power.</p><p>With that said, it is unlikely that U.S. companies will want to base their AI infrastructure on Chinese technology, and they are still going to need Nvidia’s advanced chips to power their data centers.</p><p>I think the most probable outcome is that the race for supremacy in the AI realm is accelerating and possibly opening up a door for lower-cost AI to develop. What I don’t think is going to change is the big upswing in GPU volumes that will be needed to run either U.S. or Chinese AI models.</p><h2 id=\"id_2394881318\">DeepSeek Is Likely Not Going To Have A Substantial Impact On Nvidia’s Sales</h2><p>Nvidia experienced an unprecedented sales surge in the first nine months of last year: The chip company produced $80 billion in sales in the first three quarters of its 2025 financial year.</p><p>Sales in the first nine months of the year were up more than 430% over Nvidia’s entire sales in 2023, and the chip company still has another quarter to go.</p><p>Most likely, Nvidia has ended the 2025 financial year with a total sales volume somewhere in the $120 billion ballpark and more growth awaits the AI GPU king this year (Nvidia’s 2026 financial year).</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/082c4dac8a9847406601463c1fd6362c\" alt=\"Revenue\" title=\"Revenue\" tg-width=\"640\" tg-height=\"473\"/><span>Revenue</span></p><p></p><p>In the short-and medium-term, DeepSeek is likely not have a substantial impact on Nvidia’s data center business and sales upsurge as companies continue to spend a boatload of money to fix their immediate need for more AI compute.</p><p>Nvidia’s advanced chips engineered for AI workloads are therefore going to remain in high demand, which in turn should equate to considerable volume growth and higher operating income. Nvidia’s operating income has already skyrocketed with more growth anticipated thanks to the launch of Nvidia’s latest GPU, the Blackwell.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/3373471a56a5ddc638309fd0fc8ea59a\" alt=\"Operating Income\" title=\"Operating Income\" tg-width=\"640\" tg-height=\"249\"/><span>Operating Income</span></p><p></p><h2 id=\"id_3936383752\">Nvidia’s P/E Correction Is A Buying Opportunity</h2><p>The DeepSeek controversy has sent shockwaves through the AI and semiconductor markets. This led to big declines in the stock prices of pretty much every artificial intelligence company, including Nvidia, Advanced Micro Devices (AMD), Micron Technology (MU), Broadcom (AVGO) and ASML Holding N.V. (ASML).</p><p>In the short term, semi valuations might remain under pressure as investors try to assess the impact of DeepSeek’s AI model on GPU demand, but Nvidia has a solidly reliable history of innovation. Nvidia, for example, is developing a cloud-native development platform, known as Enterprise AI, which helps companies deploy generative AI applications at scale.</p><p>Nvidia is selling for a leading profit multiple of 28x, whereas Advanced Micro Devices’ multiple is down to 23x. Nvidia is anticipated to produce an impressive 51% jump in profits this year, and the GPU company is probably still going to sell a lot more advanced chips in the future than it is now. The good news is that investors can now grab Nvidia out of the bargain bin, as did I at $117, at a hugely improved risk/reward trade-off.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/ad154bb1ece865633775297dff9ad222\" alt=\"Earnings Estimate\" title=\"Earnings Estimate\" tg-width=\"640\" tg-height=\"198\"/><span>Earnings Estimate</span></p><p></p><h2 id=\"id_4059862826\">Why The Investment Thesis Might Be More Risky Now</h2><p>DeepSeek does not pose a fundamental challenge to either Nvidia’s business model, or its strong position in the data center market, in my view. Nvidia is poised to continue to grow, mainly in data center GPUs, which are needed to support the broad application of AI products.</p><p>With that said, the pace of technological innovation is poised to kick into high gear now and China has demonstrated that it can be competitive in the market for AI models.</p><p>Though it may get more challenging for people to keep up with new developments in the AI market, to read an existential challenge into DeepSeek is probably exaggerated.</p><p>On the flip side, should China prove that it can provide competitive AI products without the need for billions of dollars of investments in the most advanced chips, then Nvidia might see growing pressure on its market share.</p><h2 id=\"id_4046736851\">My Conclusion</h2><p>Nvidia is growing its data center business via the latest Blackwell GPU, a leading, next-gen AI-oriented semiconductor chip that is meant to accelerate the handling of AI workloads.</p><p>DeepSeek might be a promising innovation, but the need for AI GPUs is not going to go away and should not in any meaningful way curtail Nvidia’s market potential in this burgeoning segment. Nvidia owns more than 90% of the GPU market, which firmly establishes the company as the ultimate leader in the data center industry.</p><p>Nvidia’s profit multiple has contracted by a good 20% compared to last week, thanks to DeepSeek rattling U.S. investors about the potential emergence of lower-cost AI models. I think that the drastic decline in Nvidia’s profit multiple indicates an elevated level of fear that investors should take advantage of. Once investors are more level-headed, I think there is a good chance that investors will drive a re-rating of Nvidia’s stock.</p><p>Chances are that the DeepSeek controversy is not going to have an overly dramatic impact on any of the U.S.’s leading chip companies, including Nvidia. The company’s sales potential should not be affected either as demand for GPUs, with or without DeepSeek, is only going to increase moving forward.</p><p>Nvidia is at the top of its industry for a reason, as it has proven itself as an AI pioneer itself. Thus, I think Nvidia deserves the benefit of the doubt and I recommend doubling down on the crash.</p></body></html>","source":"lsy1728464409321","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Nvidia: Why I Am Doubling Down On The DeepSeek Selloff</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNvidia: Why I Am Doubling Down On The DeepSeek Selloff\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-02-01 10:22 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4753847-nvidia-why-i-am-doubling-down-on-the-deepseek-selloff><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Nvidia Corporation's stock dropped 17% due to DeepSeek's AI model, but this is a buying opportunity given Nvidia's strong sales and AI GPU demand.DeepSeek's cheaper AI model caused market fear, but ...</p>\n\n<a href=\"https://seekingalpha.com/article/4753847-nvidia-why-i-am-doubling-down-on-the-deepseek-selloff\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NVDA":"英伟达"},"source_url":"https://seekingalpha.com/article/4753847-nvidia-why-i-am-doubling-down-on-the-deepseek-selloff","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1120625009","content_text":"Nvidia Corporation's stock dropped 17% due to DeepSeek's AI model, but this is a buying opportunity given Nvidia's strong sales and AI GPU demand.DeepSeek's cheaper AI model caused market fear, but Nvidia's advanced chips remain essential for U.S. companies, ensuring continued high demand.Nvidia's sales surged 430% last year, and despite DeepSeek, its data center business and AI GPU demand will drive future growth.Nvidia's profit multiple contraction is an overreaction; NVDA investors should capitalize on the current low price, as Nvidia remains a market leader.Nvidia Corporation building in Taipei, Taiwan.The AI and semiconductor market has been thrown into turmoil this week by revelations made by Chinese artificial intelligence startup DeepSeek (DEEPSEEK) that is utilizing open-source technology to run large-language models.The stock price of Nvidia Corporation (NVDA) tumbled 17% in response on Monday and dragged the entire semiconductor market down with it. I think that the market is reacting a bit hysterically here, and I consider the price correction for Nvidia to be a golden buying opportunity.In my last piece on Nvidia, I made the case for the AI GPU king. I pointed to the company’s strong sales trajectory, growing demand for semiconductors that can handle AI workloads, as well as the opportunity for AI GPU cluster up-scaling.The last reason, cluster up-scaling, relates to the growing numbers of GPUs that are (and will be) included by hyperscalers in clusters to train large-language models.In my view, the DeepSeek controversy is an opportunity to use surging market fear to your advantage, and I think that the fundamental investment thesis for Nvidia is still pretty much intact.DeepSeek-Driven AI Crash Creates OpportunityNvidia continues to see skyrocketing demand for its GPUs that are needed to train and run large-language models, or LLMs. These AI GPUs underpin chatbots like the ones developed by OpenAI, Meta Platforms Inc. (META), or Elon Musk’s X.DeepSeek is an artificial intelligence startup in China that utilizes open-source technology and develops similar chatbots. The Chinese company made waves this week as the company revealed its chatbot, which apparently has been built at a cost of $6 million based on the open source DeepSeek-V3 model.While the price tag has not yet been independently verified, as I understand it, the mere appearance of a potentially cheaper path to train large-language models has sent shockwaves through the markets earlier this week. A case in point is Nvidia, which lost $600 billion in market valuation just on the back of the DeepSeek news.The fear here is that the AI market could now transition to a new kind of low-cost model that forces companies to downscale their AI investments. This would obviously be a setback for companies that have made aggressive wagers on GPUs, such as Nvidia.According to the news, DeepSeek’s chatbot rivals OpenAI's ChatGPT or Meta's Llama 3.1 in terms of performance, with a main focus on possible cost savings. Tom’s Hardware illustrated that:DeepSeek trained its DeepSeek-V3 Mixture-of-Experts (MoE) language model with 671 billion parameters using a cluster containing 2,048 Nvidia H800 GPUs in just two months, which means 2.8 million GPU hours, according to its paper. For comparison, it took Meta 11 times more compute power (30.8 million GPU hours) to train its Llama 3 with 405 billion parameters using a cluster containing 16,384 H100 GPUs over the course of 54 days.The intrigue about DeepSeek’s R1 model is that it lowers computational costs related to each prompt. This means it could, possibly, offer a way for companies to train AI models by shortening training times as well as reducing the need for less compute power.With that said, it is unlikely that U.S. companies will want to base their AI infrastructure on Chinese technology, and they are still going to need Nvidia’s advanced chips to power their data centers.I think the most probable outcome is that the race for supremacy in the AI realm is accelerating and possibly opening up a door for lower-cost AI to develop. What I don’t think is going to change is the big upswing in GPU volumes that will be needed to run either U.S. or Chinese AI models.DeepSeek Is Likely Not Going To Have A Substantial Impact On Nvidia’s SalesNvidia experienced an unprecedented sales surge in the first nine months of last year: The chip company produced $80 billion in sales in the first three quarters of its 2025 financial year.Sales in the first nine months of the year were up more than 430% over Nvidia’s entire sales in 2023, and the chip company still has another quarter to go.Most likely, Nvidia has ended the 2025 financial year with a total sales volume somewhere in the $120 billion ballpark and more growth awaits the AI GPU king this year (Nvidia’s 2026 financial year).RevenueIn the short-and medium-term, DeepSeek is likely not have a substantial impact on Nvidia’s data center business and sales upsurge as companies continue to spend a boatload of money to fix their immediate need for more AI compute.Nvidia’s advanced chips engineered for AI workloads are therefore going to remain in high demand, which in turn should equate to considerable volume growth and higher operating income. Nvidia’s operating income has already skyrocketed with more growth anticipated thanks to the launch of Nvidia’s latest GPU, the Blackwell.Operating IncomeNvidia’s P/E Correction Is A Buying OpportunityThe DeepSeek controversy has sent shockwaves through the AI and semiconductor markets. This led to big declines in the stock prices of pretty much every artificial intelligence company, including Nvidia, Advanced Micro Devices (AMD), Micron Technology (MU), Broadcom (AVGO) and ASML Holding N.V. (ASML).In the short term, semi valuations might remain under pressure as investors try to assess the impact of DeepSeek’s AI model on GPU demand, but Nvidia has a solidly reliable history of innovation. Nvidia, for example, is developing a cloud-native development platform, known as Enterprise AI, which helps companies deploy generative AI applications at scale.Nvidia is selling for a leading profit multiple of 28x, whereas Advanced Micro Devices’ multiple is down to 23x. Nvidia is anticipated to produce an impressive 51% jump in profits this year, and the GPU company is probably still going to sell a lot more advanced chips in the future than it is now. The good news is that investors can now grab Nvidia out of the bargain bin, as did I at $117, at a hugely improved risk/reward trade-off.Earnings EstimateWhy The Investment Thesis Might Be More Risky NowDeepSeek does not pose a fundamental challenge to either Nvidia’s business model, or its strong position in the data center market, in my view. Nvidia is poised to continue to grow, mainly in data center GPUs, which are needed to support the broad application of AI products.With that said, the pace of technological innovation is poised to kick into high gear now and China has demonstrated that it can be competitive in the market for AI models.Though it may get more challenging for people to keep up with new developments in the AI market, to read an existential challenge into DeepSeek is probably exaggerated.On the flip side, should China prove that it can provide competitive AI products without the need for billions of dollars of investments in the most advanced chips, then Nvidia might see growing pressure on its market share.My ConclusionNvidia is growing its data center business via the latest Blackwell GPU, a leading, next-gen AI-oriented semiconductor chip that is meant to accelerate the handling of AI workloads.DeepSeek might be a promising innovation, but the need for AI GPUs is not going to go away and should not in any meaningful way curtail Nvidia’s market potential in this burgeoning segment. Nvidia owns more than 90% of the GPU market, which firmly establishes the company as the ultimate leader in the data center industry.Nvidia’s profit multiple has contracted by a good 20% compared to last week, thanks to DeepSeek rattling U.S. investors about the potential emergence of lower-cost AI models. I think that the drastic decline in Nvidia’s profit multiple indicates an elevated level of fear that investors should take advantage of. Once investors are more level-headed, I think there is a good chance that investors will drive a re-rating of Nvidia’s stock.Chances are that the DeepSeek controversy is not going to have an overly dramatic impact on any of the U.S.’s leading chip companies, including Nvidia. The company’s sales potential should not be affected either as demand for GPUs, with or without DeepSeek, is only going to increase moving forward.Nvidia is at the top of its industry for a reason, as it has proven itself as an AI pioneer itself. Thus, I think Nvidia deserves the benefit of the doubt and I recommend doubling down on the crash.","news_type":1,"symbols_score_info":{"NVDA":1.1}},"isVote":1,"tweetType":1,"viewCount":2087,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":398904379199616,"gmtCreate":1738413872964,"gmtModify":1738416786747,"author":{"id":"4201061858351912","authorId":"4201061858351912","name":"Widraw","avatar":"https://community-static.tradeup.com/news/dfead61c8f4e8ef924f983b493e29683","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4201061858351912","idStr":"4201061858351912"},"themes":[],"title":"Pricing - Tiger Brokers Hong Kong","htmlText":"Find out more here: <a href=\"https://www.gotigerhk.com/hk/en/commissions?banner=0&amp;skin=2&amp;os=iOS&amp;account_id=&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=0156e7ecd77207dcabc24d9e2c287061&amp;invite=8OWIS9&amp;lang=en_US\">Pricing - Tiger Brokers Hong Kong</a> Pricing - Tiger Brokers Hong Kong","listText":"Find out more here: <a href=\"https://www.gotigerhk.com/hk/en/commissions?banner=0&amp;skin=2&amp;os=iOS&amp;account_id=&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=0156e7ecd77207dcabc24d9e2c287061&amp;invite=8OWIS9&amp;lang=en_US\">Pricing - Tiger Brokers Hong Kong</a> Pricing - Tiger Brokers Hong Kong","text":"Find out more here: Pricing - Tiger Brokers Hong Kong Pricing - Tiger Brokers Hong Kong","images":[{"img":"https://static.tigerbbs.com/ff98eccfaff055c5a7c86bee57069e0c"}],"top":1,"highlighted":1,"essential":1,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/398904379199616","isVote":1,"tweetType":1,"viewCount":2450,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":398902579675600,"gmtCreate":1738413744732,"gmtModify":1739169504953,"author":{"id":"4201061858351912","authorId":"4201061858351912","name":"Widraw","avatar":"https://community-static.tradeup.com/news/dfead61c8f4e8ef924f983b493e29683","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4201061858351912","idStr":"4201061858351912"},"themes":[],"title":"Help Center - Tiger Brokers","htmlText":"Find out more here: <a href=\"https://www.gotigerhk.com/hk/en/help/detail/34490240?skin=2&amp;os=iOS&amp;account_id=&amp;utm_source=help_center&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=c942c915e9169604e90a2023c52f33ed&amp;invite=8OWIS9&amp;lang=en_US\">Help Center - Tiger Brokers</a> Tiger Brokers is a company listed on NASDAQ. 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Investors can easily open accounts online with Tiger Brokers.","images":[{"img":"https://community-static.tradeup.com/news/cb2599fa9f89d0e89b48c52cf049aa84","width":"1284","height":"2778"}],"top":1,"highlighted":1,"essential":1,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/398902215848576","isVote":1,"tweetType":1,"viewCount":1873,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":2,"langContent":"EN","totalScore":0},{"id":398903026602112,"gmtCreate":1738413542740,"gmtModify":1738416786119,"author":{"id":"4201061858351912","authorId":"4201061858351912","name":"Widraw","avatar":"https://community-static.tradeup.com/news/dfead61c8f4e8ef924f983b493e29683","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4201061858351912","idStr":"4201061858351912"},"themes":[],"title":"Help Center - Tiger Brokers","htmlText":"Find out more here: <a href=\"https://www.gotigerhk.com/hk/en/help/detail/47721762?skin=2&amp;os=iOS&amp;account_id=&amp;utm_source=help_center&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=922d962b3e92d5d054efd979a055ce1d&amp;invite=8OWIS9&amp;lang=en_US\">Help Center - Tiger Brokers</a> Tiger Brokers is a company listed on NASDAQ. With U.S. licenses, it has become the platform of choice for global Chinese investors to trade in the U.S. and Hong Kong. Investors can easily open accounts online with Tiger Brokers.","listText":"Find out more here: <a href=\"https://www.gotigerhk.com/hk/en/help/detail/47721762?skin=2&amp;os=iOS&amp;account_id=&amp;utm_source=help_center&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=922d962b3e92d5d054efd979a055ce1d&amp;invite=8OWIS9&amp;lang=en_US\">Help Center - Tiger Brokers</a> Tiger Brokers is a company listed on NASDAQ. With U.S. licenses, it has become the platform of choice for global Chinese investors to trade in the U.S. and Hong Kong. Investors can easily open accounts online with Tiger Brokers.","text":"Find out more here: Help Center - Tiger Brokers Tiger Brokers is a company listed on NASDAQ. With U.S. licenses, it has become the platform of choice for global Chinese investors to trade in the U.S. and Hong Kong. Investors can easily open accounts online with Tiger Brokers.","images":[{"img":"https://static.tigerbbs.com/ff98eccfaff055c5a7c86bee57069e0c"}],"top":1,"highlighted":1,"essential":1,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/398903026602112","isVote":1,"tweetType":1,"viewCount":1747,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0}],"lives":[]}