Do investors have artificial intelligence in the long run?

Broadcast giant chip Nasdak: AVGO newly Publication of quarterly results Many have argued that the artificial intelligence party has not yet ended. The market’s reaction to the company’s results was in a flagrant contradiction with its opponent, Marvel Technology Nasdak: mrvl. Marvell issued to her Q4 2024 profits On March 5. After that, the shares decreased, and nearly 20 % of their value were lost.

Broadcom today

190.54 dollars -5.03 (-2.57 %)

As of 04:00 pm

52 weeks

119.76 dollars

▼

$ 251.88

Profit

1.24 %

P/E ratio.

155.42

The target price

231.48 dollars

This was a little shocking wave that sent fears by ascending to the artificial intelligence revolution. This indicates the similarities in their business, the results of Marvell also fell 6 %.

Broadcom’s profits just after one day sparked a more positive reaction. The stocks have emerged more than 8 %, which led to the calming of some fears that Marvell brought.

What explains these different results significantly, and why Broadcom is still a strong investment of artificial intelligence? This analysis will compare the results of the two companies and highlight the visions of the main management.

Comparison of profits: Broadcast overcame expectations and the development of its pipeline

For Marvil, her profits were in no way bad. The company slightly defeated revenue estimates, amended profits per share (EPS), and directing the next quarter of both numbers. However, Broadcom brilliance compared. The company won the estimates of the revenues and the amended arrow and the shares of the amended arrow by more than 2 % and 6 %, respectively. Its revenue instructions for next quarter amounted to $ 190 million, which was expected, as it won more than 1 %. The modified profits came before interest, taxes, consumption and extinguishing (EBITDA) is higher than expected through a similar dollar number. The highest 2 % of the expected.

In general, these numbers may not look like huge beats, but they were sufficient to get enthusiastic markets enough to significantly increase the company’s evaluation. Many technical stocks that strongly lead to greatly overcoming estimates and raising guidance to prevent shares from decline. This was especially true for Broadcom and Marvell this quarter. The markets have been hoping for recent advertisements for high -end companies that invest hundreds of billions in Amnesty International’s infrastructure to significant guidance rhythms.

Broadcom may be the company that benefits from this hope. Regardless of the rhythm and lifting, it made interesting comments that sparked investors. The administration stated that it is working with two new Hyperscales to make a custom speeding chips, as well as two other super players that previously revealed that they were working with. This was a particularly encouraging sign, which indicates that Broadcom continues to grow deals pipeline. Marvell did not give a similar comment. In general, investors should look at this as a strong sign of Broadcom’s future.

Vmware: Broadcom’s Ace Up Steer

One of the big features that Broadcom on Marvell in terms of investment in artificial intelligence is its program. The company’s acquisition of VMware was very successful. Broadcom has significantly reduced the number of VMWE employees and has transferred many customers to a frequent subscription model instead of lifelong licenses.

In addition, the company improves previous VMWARE products and expands the capabilities of the VMWARE, VSPHERE. VSPHERE is a virtual simulation program that allows the server to divide its computing resources through multiple work burdens. Without the virtual simulation program, the server is often not dispensed, because the work burden will not be sufficient to use all its strength.

VMWARE has expanded this concept to the entire data center through VMware Cloud Foundation (VCF). It also meets the needs of great artificial intelligence with the VMWARE Private Foundation AI. The virtual simulation adds to Nvidia’s Nasdak: nvda Graphics processing units (graphics processing units). This allows the virtual simulation of the burdens of artificial intelligence.

In general, this provides a highly valuable product for large institutions that want to run the burdens of Amnesty International’s work in its data centers. This is instead of running it on a public cloud like Microsoft Nasdak: msft I visit. This special cloud method is ideal for ensuring data safety. These changes allowed Broadcom to significantly increase VMWARE margins with impressive revenue. Vmware Broadcom gives two great ways to take advantage of the spread of artificial intelligence: devices and programs. For Marvil, the devices really keep the flame.

AVGO: It is still a strong way to play artificial intelligence

Broadcom seems ready to continue its impressive success in the male investment scene. Slices of semiconductor programs and strong infrastructure that grows in the company with two revenues with materials with the people of Amnesty International. In addition, the company’s margins should continue to increase as the program becomes more part of the company’s business.

Before you think about Broadcom, you will want to hear this.

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