SAMUELI HENRY sold $250.0M of AVGO (indirect holdings)

Goldman Sachs reports AI infrastructure stocks' valuations have dropped to 22x earnings, down from 32x in April, amid spending estimates reaching $1.1T by 2027. Memory chip stocks trade at 4x earnings, while chip designers show more stable margins. Goldman maintains Buy ratings on Nvidia (NVDA) and Broadcom (AVGO), Neutral on Micron (MU). Cloud providers' spending may reach $800B in 2024, requiring $300B in annual AI revenue to break even by 2026-2027.

Nvidia (NVDA), AMD (AMD), and Broadcom (AVGO) stocks rose in pre-market trading on Sept. 25, partly due to easing oil prices. Nvidia gained additional support from Elon Musk's announcement that SpaceX will expand its use of Nvidia chips. AMD and Broadcom also benefited from AI infrastructure demand. All three have Strong Buy ratings from analysts, with Broadcom showing the highest upside potential.

Broadcom Inc. affiliate D95GT, LLC plans to sell 631,972 common shares, valued at $225M, on or around September 23, 2026, according to a regulatory filing. The shares are 'Founders Shares' acquired in 1991, with Northern Trust Securities, Inc. acting as broker. The sale is subject to Rule 144 regulations.

Broadcom (AVGO) stock fell 0.3% premarket after a Financial Times report stated Chinese authorities are auditing its networking hardware in state-backed data centers, aiming to reduce reliance on foreign tech. The survey found Broadcom switches may account for 90% of hardware used by state-owned firms, potentially leading to reduced usage. Huawei and other Chinese suppliers could benefit. Retail sentiment on AVGO remains bearish.

Chinese authorities are reviewing Broadcom's hardware in state-backed data centres, with potential informal guidance to follow. Broadcom's switches account for up to 90% of equipment in some centres, raising concerns about dependency. The company's China revenue exposure is significant, particularly in its core networking switches segment. Potential domestic alternatives include Huawei, H3C Technologies, and Ruijie Networks.

China is reviewing Broadcom switches in state data centres, with findings suggesting up to 90% usage in some facilities. This aligns with Beijing's push to reduce reliance on foreign tech. Broadcom, Nvidia, and Huawei are major suppliers. Potential beneficiaries include Huawei, H3C, and Ruijie Networks. No formal ban is confirmed, but informal guidance may shift spending to domestic suppliers.