To The Moon

🌪️ A Big Week for Technology Stocks

If you own technology stocks right now, this is the week that teaches you how the game is played. 📚📈

On Tuesday, September 1, Wall Street had one of its worst sessions in weeks. Oil jumped above $90 a barrel following fresh U.S. strikes on Iran, Treasury yields climbed to their highest levels since early 2025, and the Nasdaq fell around 1%. 🛢️📉

Then came Dell Technologies. After the market closed, Dell reported quarterly results, and the stock jumped around 8% in after-hours trading. 💻🚀

Tonight, the spotlight turns to Broadcom. After the U.S. market closes on Wednesday, September 2 — roughly 4 a.m. Thursday Singapore time — Broadcom will report its fiscal Q3 results.

The big question is:

🤖 Can Broadcom Really Triple Its AI Business?

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📚 First: A 5-Minute Crash Course for Beginners

Before looking at Broadcom’s numbers, here are five terms every beginner should understand:

🗓️ Fiscal Quarter

Companies don’t always follow the normal January–December calendar.

Dell’s Q2 fiscal 2027, for example, covers roughly May–July 2026, while Broadcom’s Q3 fiscal 2026 covers a similar period.

📊 Consensus

This is the average estimate from Wall Street analysts.

A company doesn’t just need to report good numbers — investors want to know whether those numbers are better or worse than expectations.

🔮 Guidance

This is management’s forecast for the future.

For many investors, guidance can matter more than the quarter that just ended.

💰 Gross Margin

Gross margin shows how much revenue remains after the direct costs of producing the products.

Higher margins generally mean more room for profits. 📈

📦 Backlog

Backlog represents orders that have been booked but haven’t yet been delivered.

A strong backlog can provide investors with visibility into future revenue.

And finally:

😵 “Beat but the Stock Fell”

This is one of the most important lessons in investing.

A company can beat analyst estimates and still see its stock fall if investors were expecting an even bigger beat.

That’s the expectations game.

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🔥 What Broadcom Must Prove Tonight

Broadcom’s fiscal Q3 report is expected to be dominated by one number:

🤖 $16 Billion in AI Semiconductor Revenue

Broadcom has already guided investors toward approximately $29.4 billion in total quarterly revenue, representing roughly 84% year-over-year growth.

Within that, management has guided toward approximately $16 billion of AI semiconductor revenue.

That would represent more than 200% growth from approximately $5.2 billion a year earlier.

In other words:

📈 Broadcom’s AI business is approaching 3× year-over-year.

And AI would represent approximately 54% of Broadcom’s total revenue.

That is a huge transformation for the company.

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🧠 What Does “AI Revenue” Actually Mean?

This is where beginners should pay attention.

Broadcom’s AI business isn’t simply selling GPUs like Nvidia.

It has two major components:

🖥️ 1. Custom AI Chips — ASICs

Broadcom works with major cloud companies to develop custom AI accelerators, known as ASICs.

Companies such as Google and Meta can use customized chips designed around their specific workloads.

The idea is simple:

Nvidia GPU → General-purpose AI computing

Broadcom ASIC → Customized AI computing

That makes Broadcom an important part of the AI infrastructure ecosystem. 🤖🏗️

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🌐 2. AI Networking

AI isn’t just about computing power.

Thousands of AI chips need to communicate with each other extremely quickly.

That’s where Broadcom’s networking technology comes in. 🔗⚡

Its Ethernet switching and networking products help connect enormous AI data centers.

So when investors talk about Broadcom’s AI opportunity, they’re really talking about:

Custom AI chips + AI networking

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⚠️ Here’s the Twist Beginners Often Miss

The $16 billion AI number isn’t really a surprise.

Why?

Because Broadcom already told Wall Street to expect it.

Management provided this target roughly three months ago.

So if Broadcom reports around $16 billion tonight, investors may simply say:

“Okay, Broadcom delivered what it promised.”

That’s why simply looking at the headline numbers isn’t enough. 👀

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🎯 The Real Number to Watch: Future Guidance

This could be much more important than the quarter that just ended.

Wall Street wants to know:

🚀 How fast can Broadcom’s AI business grow from here?

Morgan Stanley has modeled approximately $34.8 billion of revenue for the October quarter, including around $21 billion of AI revenue.

If Broadcom provides guidance anywhere around or above those expectations, investors could become significantly more optimistic about the company’s AI growth trajectory.

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💥 Why $100 Billion Matters

Broadcom has also discussed the possibility of generating more than $100 billion in AI revenue in fiscal 2027.

That’s an enormous number.

But investors should remember:

A forecast isn’t guaranteed revenue.

The market will increasingly ask whether Broadcom can actually convert AI demand into:

💰 Revenue

📈 Earnings

💵 Free cash flow

🏗️ Long-term orders

That is what separates an exciting AI story from a sustainable AI business.

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📉 Don’t Ignore Margins

There’s another number I will be watching closely:

💰 Gross Margin

Broadcom’s gross margin has declined from roughly 78% two years ago to around 76% last quarter.

Why?

Because AI semiconductor products are becoming a much larger part of the business, and these products can carry different margins than some of Broadcom’s older businesses.

A lower margin isn’t necessarily bad.

If revenue is growing dramatically, a slightly lower margin can still produce much higher overall profits.

But investors need to make sure margins don’t deteriorate too quickly.

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🏆 Why I Hold Broadcom

For me, Broadcom represents one of the most interesting ways to participate in the AI infrastructure boom without owning only the GPU story.

I like the combination of:

🤖 Custom AI chips

🌐 AI networking

☁️ Hyperscaler customers

📈 Rapid AI revenue growth

💰 Strong cash generation

🏗️ Increasing AI infrastructure demand

The biggest attraction is that Broadcom isn’t dependent on just one AI product.

It is becoming part of the infrastructure connecting and powering the AI ecosystem.

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💻 Why I Also Hold Dell

Dell gives me a different exposure to the same AI investment cycle.

If companies and cloud providers are spending billions building AI data centers, somebody has to supply the:

🖥️ Servers

💾 Storage

🏢 Data-center infrastructure

🔌 Hardware

That’s where Dell comes in.

The strong reaction to its latest earnings shows just how sensitive hardware companies can be to the AI infrastructure spending cycle.

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🍎 And Why Apple?

Apple is a different investment altogether.

Broadcom and Dell give me exposure to the AI infrastructure build-out.

Apple gives me exposure to the consumer technology ecosystem.

📱 iPhone

💻 Mac

⌚ Wearables

☁️ Services

🤖 Potential future AI products

That diversification is important.

I’m not trying to predict which single AI company will win.

I’m looking at different parts of the technology ecosystem.

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🧩 My Simple AI Investment Framework

For beginners, I think it’s better to think about AI as an ecosystem, rather than simply asking:

“Which AI stock should I buy?”

Think about the chain:

⚡ Energy → 🏢 Data Centers → 🖥️ Servers → 🤖 Chips → 🌐 Networking → ☁️ Cloud → 💻 Applications → 📱 Consumers

Broadcom sits heavily in the chip + networking portion.

Dell sits in servers + infrastructure.

Apple sits much closer to the consumer/application ecosystem.

That’s why I like owning different companies exposed to different parts of the same long-term technology trend.

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👀 Tonight’s Broadcom Checklist

When the earnings report arrives, don’t just look at whether revenue “beats.”

I’ll be watching:

1️⃣ AI Revenue

Did AI revenue reach or exceed the $16B target?

2️⃣ October Guidance

Is management expecting another major acceleration?

3️⃣ Custom ASIC Demand

Are hyperscalers continuing to increase their spending?

4️⃣ Networking Growth

Is AI networking growing alongside custom chips?

5️⃣ Gross Margin

Is the margin holding up despite the changing product mix?

6️⃣ 2027 Outlook

Does the $100B+ AI revenue opportunity look increasingly achievable?

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🚨 The Biggest Beginner Mistake

Don’t buy a stock simply because the headline says:

“AI revenue up 200%!” 🚀

Ask a second question:

“Was the market already expecting it?”

If the answer is yes, the stock may need to deliver even more to move higher.

That’s one of the most important lessons of earnings season.

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🚀 My Bottom Line

Broadcom’s earnings tonight aren’t simply about whether the company can hit $29.4 billion of revenue or approximately $16 billion of AI revenue.

The real story is whether Broadcom can demonstrate that its AI growth is becoming bigger, more durable and more profitable.

For me, Broadcom, Dell and Apple offer three different ways to participate in the technology revolution:

🤖 Broadcom — AI chips & networking

💻 Dell — AI servers & infrastructure

🍎 Apple — consumer technology & ecosystem

The AI investment cycle is much bigger than one company.

And that’s exactly why I prefer looking at the whole ecosystem rather than chasing one stock. 📈🚀

This is my personal investment framework, not financial advice. Earnings can be volatile, and investors should consider valuation, risk and their own investment horizon.

$Broadcom(AVGO)$  

$Apple(AAPL)$  

$Dell Technologies Inc.(DELL)$  

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