Investing.com - May 23, 2026

🟠 The real reason AVGO is up 82% in a year

The Brief ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏...

The Brief | May 23, 2026

3 answers that help you find trades others can’t

What are this week’s market risks or opportunities?

Among thousands of conversations shared with WarrenAI this week, one question kept coming up in the AI semi names: should I rotate out of Micron into Broadcom or ASML for better upside?

People are framing it as a rotation, but the data says it isn’t exactly.

Nvidia reported Wednesday with Data Center revenue of $75.2B, up 92% YOY. AI infrastructure spending by the major cloud providers (Microsoft, Google, Amazon, Meta, Oracle) is now running around $725B for 2026. The pie is growing faster than any single vendor can capture, opening room for names beyond Nvidia to take real share without Nvidia losing any.

The harder question is whether end-user revenue ever justifies the spend. Consulting firm Bain puts it at $2 trillion in annual AI revenue to support $500 billion in capex. That gap hasn’t closed. So the real rotation is about whether the spend ever pays back, and it’s worth running against your own watchlist.

How Does This Affect My Watchlist?

Which trades should I consider?

The rotation conversation keeps circling the same four names, each playing a different role in the AI stack.

Nvidia is the company that built the market for AI compute and the most widely held trade in this sector right now.

Micron (MU) makes the memory chips that go into AI servers, but its revenue rises and falls with memory prices as much as with AI demand, which is why we're seeing people move out of it this week.

ASML is the only company that makes EUV lithography equipment, the machines required to manufacture every advanced AI chip in this story.

Broadcom (AVGO) is the one worth understanding before you buy. More on that below.

Should I consider this trade?

Broadcom is up 81.85% in the past year and performance chasers drove most of that move without a thesis.

The true catalyst is custom silicon.

Google, Amazon, Microsoft, and Anthropic are all designing their own chips now, built for their specific AI workloads, because custom silicon costs less to run at scale than off-the-shelf GPUs.

Broadcom is the company they’re working with to build it.

Their deal with Anthropic alone accounts for 3 gigawatts of AI infrastructure demand, a multi-year commitment with years of execution ahead.

Broadcom reports on June 3. Big earnings weeks separate the investors who own it for a reason from the ones chasing the chart. Two people can hold the same shares without having the same conviction to hold them through a bad week.

Read WarrenAI’s View on AVGO

Data correct to 21.05.2026

How would you rate this email?

👍

👎

Scan & download

our app

Download our app

Disclaimer:
Fusion Media or anyone involved with Fusion Media will not accept any liability for any trading loss or damage as a result of reliance on the information contained within this email including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Fusion Media would like to remind you that the data contained in this email is neither necessarily real-time nor accurate. All stock prices, Indexes, Futures, buy/sell Signals and Forex prices are indicative and not appropriate for trading purposes; furthermore they are not provided by an exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price. Fusion Media doesn't bear any responsibility for any trading losses you might incur as a result of using this data.

This is a newsletter from Investing.com

Unsubscribe Manage your e-mail preferences Privacy Policy Terms And Conditions

3076 Sir Francis Drake's Highway, Road Town, Tortola, BVI

This email was sent to