Buy the Dip? Broadcom’s AI Moat Is Wider Than Ever

Despite a recent stock decline following earnings, Broadcom's AI business remains strong with 143% growth in its core AI segment, $10.3 billion in free cash flow, and $30+ billion in AI-semiconductor bookings. The market's concern over gross margin compression from 77.1% to 74% misses the bigger picture: operating margins expanded to a record 67.3%, driven by strategic product mix shifts toward higher-volume custom AI accelerators. Alphabet's $80 billion capital raise for AI infrastructure and potential $35 billion private-credit financing discussions further support long-term demand visibility.