From a peak of around US$490, Broadcom’s share price has dropped more than 30% to about US$330 per share, resetting its trailing P/E from over 70 to a more palatable level of over 40. Still, investors should not ignore the custom chip designer’s concentration risk, with direct sales to one distributor accounting for 50% of its 3Q2026 net revenue. In addition, its top five end customers account for approximately 55% of 3QFY2026 net revenue. Despite these concentration risks, Broadcom remains dominant in custom chip design. Revenue for its AI-driven Semiconductor Solutions segment skyrocketed 127% YoY to US$20.8 billion, lifting consolidated 3Q2026 revenue 85.5% YoY to US$29.59 billion, with an operating margin of 53.9%. Backed by long-term demand from Big Tech firms such as Alphabet, Broadc
Alphabet’s share price pulled back sharply from its peak of more than US$400 in May 2026 to around US$280, wiping out close to one-third of its market capitalisation. The catalyst? Earnings per share (EPS) missed in the third quarter of 2026 (3Q2026), coming in at US$2.12 against consensus analyst estimates of US$3.02. As Alphabet owns a stake in the publicly listed SpaceX, a fall in the share price of the latter caused a non-operating accounting loss of US$8.7 billion for the quarter, which weighed on the bottom line. Furthermore, Alphabet’s heavy capital outlays spooked investors, as it announced 3Q2026 quarterly capex of US$51.4 billion, pushing its free cash flow (FCF) to negative US$9.1 billion. Although Alphabet’s 2026 capex is expected to stay within the guided range of US$195 billi
Do u know Fortinet sells firewalls, the physical boxes that sit in a company’s network and inspect what goes in and out. It also sells the subscriptions that keep those boxes updated against new attacks Then Fortinet reported. On 29 October, it fell 20.1%, from US$174.08 to US$139.10, and about US$26 billion of market value went with it. CrowdStrike fell 2.1% that day and Palo Alto 3.5%, so this was about Fortinet, not the sector. The trigger looks absurdly small. Fortinet cut the midpoint of its full-year service revenue forecast by US$40 million, from US$5.20 billion to US$5.16 billion. That is 0.8%. In the same release, it raised its total revenue forecast by US$70 million and its billings forecast by US$193 million. You still remember In April, Anthropic said its Mythos model had found
Companies going public like to put a number on the market they could win. It is called the total addressable market. Anthropic doesn’t use the term, but it gives a number that does the same job. It says the work done by the world’s knowledge workers, people paid to think, write, analyse and decide, was worth more than US$40 trillion in 2025. Its near-term opportunity, it says, is to make that work more productive. That tops SpaceX, which listed earlier this year. Its prospectus claimed “the largest actionable total addressable market in human history”, at US$28.5 trillion. US$26.5 trillion of that was AI. Where does US$40 trillion come from? Anthropic took what American knowledge workers earn, using US government wage data, and scaled it up to the whole world. So it is, roughly, the world’
Anthropic’s net revenue retention is about 900%. In plain terms, business customers who were paying it a year ago now pay nine times as much, on average. What are they paying for? Mostly usage. 80% of revenue in the first half of 2026 came from customers paying for what they use, whether through Anthropic directly or through Amazon, Google and Microsoft’s clouds. That covers companies building Claude into their own products and staff running Claude Code all day. The other 20% came from subscription plans. The 900% leaves out people on the Pro and Max plans for individuals, so it isn’t people upgrading their plans. It is companies putting Claude to work on more and more of what they do. And the biggest companies have barely started. More than half the Fortune 500 now pay Anthropic at least
We think Anthropic is in good health today, and that the next two years decide whether it stays that way, as the computing bills arrive faster than the revenue that has to pay them. Watch for “buy the rumour, sell the news”. Chip stocks had a rough October. The Philadelphia Semiconductor Index fell 19% from 6 October to 22 October, on worries about how much is being spent on AI. Then the filing came out and the index jumped about 3% in a day, with Nvidia and Broadcom up about 3% each. The excitement can fade just as fast once trading starts. A listing this size also needs buyers, and some funds will sell other AI stocks to make room for ANT. Remember Facebook. It listed at US$38 in May 2012, fell below US$20 by August, and slid further when the first lock-up ended. We wouldn’t chase AI sto
Alphabet paid a US$5.2 billion EU fine, and it built up US$3.2 billion of chip systems it will sell to customers later. Even after adding both back, free cash flow is still slightly negative. Over the last 12 months it was US$19.7 billion, against US$73.3 billion for 2025.,the spending is not slowing. Alphabet expects US$195 billion to US$205 billion of capex this year, and says 2027 will “increase significantly” from there. That spending comes back as a cost later. About 65% of it went into servers and networking, which Alphabet writes off over six years. Depreciation was US$8.4 billion this quarter, up from US$5.6 billion a year ago. The chief financial officer said it will “continue to weigh on the P&L”. In plain words, today’s capex is tomorrow’s expense, and most of it has not sta
We have seen AI stocks fall this hard twice before, and each time the reason was different. In January 2025 the worry was demand. China’s DeepSeek showed it could build a capable AI model for a fraction of the usual cost, and investors wondered whether the world needed so many expensive chips. Nvidia fell 17% in a single day. In June and July this year, the worry was a glut of chips, made much worse by forced selling due to overleveraging.This time, bond prices went up instead. That points to a flight to safety. Investors are selling risky assets and piling into government bonds, and the extra demand pushes bond prices up. Their worry is that some of the money lent to AI companies could go bad. And if it does, who is going to fund the AI build-out? The credit market is saying the same thin
What happened to last quarter stock price? The second quarter was weak. Organic revenue fell 1%, US pet medicine sales fell 11%, and management cut its full-year revenue forecast for the second time this year, to $9.12 billion to $9.32 billion. The stock rose 3.9% on the day anyway, a sign the price was pessimistic. In September, management said the discounts it was using to win customers back from rivals hadn’t worked well enough, so it made them bigger in the third quarter. List prices were not cut though, just bigger discounts. stock like Zoetis It fell to $69.10 on 1 Oct, then recovered to $82.00, 6% above where i wrote about it before Where we stand the fair value is $125 to $155, and the stock trades 34% below the low end.this show market still not very pessimistic yet