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Hello, this is Mo Su. Today is August 1, 2024. In this video, through a Triple article, we will look into the news that billionaire Ken Griffin has made a massive investment in Nvidia's AI competitors—telling people to "forget Nvidia"—and see which stocks were targeted. Broadcom is mentioned in the article.
Here is the main text. Nvidia stock has skyrocketed, and early investors are receiving a lot of money. This includes Ken Griffin, the chief cube of Cita. Griffin purchased Nvidia stock in 2013 and held over 3 million shares of this AI stock until the end of last year. Recently, Griffin has not purchased Nvidia stock, and it is reported that he sold off about 68% of his Nvidia shares in the first quarter of this year.
At the same time, he is said to have purchased another AI stock by over 500%. Let's find out why he did that. First, I think it is important to look at Griffin's trajectory. When he launched Cita in the 1990s, Griffin successfully grew his investment company, and it is said to have become a $63 billion investment capital firm today.
And Citadel has become one of the most profitable investment funds, so it is worth examining how Griffin invests, and you can follow suit. It is reported that they recently purchased 295,000 shares of Broadcom, increasing their position by over 500%. This indicates a clear rhythm for this AI stock. Griffin has likely already started making profits from this move, as the stock has risen 35% this year.
Earlier this month, they conducted a 10-to-1 stock split, making it easier for more new entrants to buy Broadcom. Previously, the stock was priced over $1,000 per share, making it somewhat inaccessible for small shareholders. While we can understand why Griffin has bought so much, there is plenty of reason why Broadcom will be a winner on the journey to AI.
In the most recent quarter, the semiconductor and networking giant Broadcom saw its AI stock rise by over 280%, reaching $3.1 billion. The company stated that mega-scale data centers and custom races led this rally. With the continuous expansion of data centers and hyperscales, Broadcom is experiencing sustained growth in its networking business.
A large number of switches are being sold, and next-generation switches and optics will drive new growth. Broadcom is optimistic about sustained growth, and considering the AI market, there is reason to be confident in investing in the company. Today's 200 billion dollar AI market is expected to exceed 1 trillion dollars in about 10 years, and the fact that over 99% of current internet traffic travel passes through Broadcom confirms that the company is positioned to become a beneficiary of the AI boom.
Furthermore, Broadcom has acquired a cloud software company called VMware, anticipating growth in this sector. In fact, VMware is expected to generate 51 billion dollars in revenue this year, representing a 42% increase. Given Broadcom's significant potential for future growth, if we compare it to Nvidia, Nvidia focuses on chips, data centers, and other related products and services, whereas Broadcom encompasses a much broader scope, extending beyond data centers to include home connectivity and smartphones.
Telecommunications, and therefore AI, is the reason why Broadcom's growth is more anticipated. Also, because they are investing across a broader range of businesses, it can be seen as having greater safety. It is good to remember again that Citadel's Griffin is no longer interested in investing in Nvidia.
There are many reasons to be optimistic about these two AI stocks, but another reason to invest in Broadcom by following Griffin and Nvidia is that Broadcom is trading at 31 times its earnings estimate, while Nvidia is at 41 times. Considering the acquisition of VMware and profits in the AI sector, a 3x leverage is a reasonable figure.
This is why you should invest in Broadcom right now by following billionaire investor Griffin and Nvidia. Now, here is the Broadcom chart. It rose 13.2% today. Today, Dia also rose about 12%, or rather, changed to 14.95%. The reason for this trend appears to be that AMD showed good results, causing them to rise together.
Now, looking at the Nvidia chart, looking at the daily candlestick, it is forming a double top. Next, regarding the dead cross, the 5-line and 20-lines dead crossed, followed by the 60-line. We are observing it rising again from there. Looking at the weekly chart, you can see a long wick. Rodriguez showed a similar pattern; after one or two candles formed, it declined again, then the 20-line and 60-lines dead crossed, followed by a significant 12.7% rise.
They are showing similar trends, and it appears that Rodriguez is experiencing this tremendous surge due to AI orders. Furthermore, as seen in this text, Broadcom is not focused solely on chips and data centers like Nvidia, but operates across a wider range of fields, making it safer to invest in. Since it is trading at a lower multiple than Ford's earnings estimates, it is worth considering.
Above all, because Citadel's Griffin is investing, you can invest with greater confidence. I will conclude this video by examining this further and determining for myself whether investing in Broadcom is a good idea. Thank you.
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