Broadcom Inc.

(NASDAQ Global Select)
Back to all articles
Somewhat Bullish +45

Cathie Wood Just Dumped $134 Million of Broadcom and Bought Nvidia and SpaceX

Insider transaction AI-generated analysis

πŸ“‰ ARK Invest sold nearly all its Broadcom shares, reducing its position by roughly $134 million as the stock fell over 10% to near its 52-week low.

πŸš€ Broadcom reported fiscal third-quarter revenue growth of 85.5% to $29.59 billion with AI semiconductor revenue surging 221%.

πŸ“… Management guided fourth-quarter revenue to $34.80 billion, projecting a massive 236% increase in AI semiconductor revenue.

βš–οΈ The stock trades significantly below its 52-week high of $495.00 despite strong earnings, reflecting market concerns over potential new AI regulations.

πŸ”§ Broadcom's custom chip business for major cloud customers provides a demand stream that does not rely solely on general-purpose GPU orders.

πŸ“Š The company is expected to report fourth-quarter results on December 10, with investors watching closely for revenue exceeding $21.70 billion.

πŸ›‘οΈ Broadcom's fiscal third-quarter earnings demonstrate resilience as the stock price decouples from its fundamental performance metrics.

Bullish Signals
  • Broadcom reported a massive 85.5% increase in total revenue to $29.59 billion for the fiscal third quarter, demonstrating strong top-line growth.
  • AI semiconductor revenue surged by an impressive 221% in the last quarter, highlighting the company's dominant position in the AI infrastructure market.
  • Management provided robust guidance for the fourth quarter, projecting total revenue of $34.80 billion and AI revenue growth of 236%.
  • The company maintains a diversified demand base through its custom accelerators built for major cloud customers, reducing reliance on general-purpose GPU orders.
Risk Factors
  • The stock price has plummeted over 10% to trade near its 52-week low of $289.96, creating a significant disconnect between share price and reported earnings.
  • Market sentiment is negatively impacted by speculation that the newly elected Democratic Congress may introduce regulations clamping down on the AI industry.
  • The stock faces immediate technical risk if it closes below its $289.96 support level before the upcoming December 10 earnings report.
Full Analysis
ARK Invest's flagship ARKK fund executed a significant rotation on November 5, selling approximately $134 million worth of Broadcom (AVGO) shares while simultaneously purchasing roughly $100 million in Nvidia and SpaceX. This move occurred during the Nasdaq 100's worst session since March 2020, where Broadcom's stock plunged over 10% to trade near its 52-week low despite reporting robust underlying financial performance. Broadcom's fundamentals remain strong with fiscal third-quarter revenue surging 85.5% to $29.59 billion and AI semiconductor revenue jumping 221%. Management has guided fourth-quarter revenue to approximately $34.80 billion, driven by a projected 236% increase in AI revenue. However, the stock price remains disconnected from these earnings, trading well below its 52-week high of $495.00 amid speculation regarding potential new AI regulations from the newly elected Democratic Congress. Analysts suggest Broadcom's custom accelerator business provides a demand source independent of general-purpose GPU orders, offering a distinct strategic advantage. The stock faces a critical test before its December 10 earnings report; investors are watching to see if the company can close above its $289.96 support level and deliver AI revenue exceeding the $21.70 billion guidance. A strong Nvidia earnings report on November 17 could provide further context for Broadcom's valuation trajectory.