AI Chip Demand Sustainability: Bernstein Analyst Stacey Rasgon on Broadcom & Nvidia

AI Demand and Sustainability Concerns

• 💡 While AI worries have surfaced, demand for AI chips from companies like Broadcom and Nvidia remains exceptionally high, with the "music" not yet stopping.
• 🚀 The sustainability of these massive numbers is a key concern, but recent trends suggest the rally can continue for longer than anticipated.

Broadcom's AI Focus and Future Revenue

• 🎯 Broadcom reported significant AI customer engagement, with CEO Hock Tan committed to staying until 2030, driven by AI revenue incentives.
• 💰 Tan's targets project substantial growth, potentially reaching $120 billion by the end of the decade.

Nvidia and OpenAI's Continued Demand

• ⚡ Nvidia benefits from OpenAI's continued investment, with the first tranche of purchases not due until next year, indicating sustained demand.
• 📈 OpenAI's own financial projections and Oracle's RPO (Remaining Performance Obligations) suggest a robust