Broadcom's 60% margin unsustainable; questions if competitive moat is real given TPU v8i success and design alternatives.
AVGO margin ~60% only slightly below NVIDIA. Claims of irreplaceability overstated. TPU v8i already proven viable (MediaTek handling). Margin sustainability in question.
Broadcom’s margin is around 60%, which isn’t even that far from NVIDIA’s margin. Let’s stop saying things like, “You need Broadcom’s design capability to compete with NVIDIA.” TPU v8i has already succeeded, hasn’t it? Do you really think Broadcom’s margin is sustainable?
| Horizon | Raw move | vs SPY |
|---|---|---|
| 1 day | -12.6% | -13.0% |
| 1 week | -22.4% | -18.5% |
| 1 month | -22.0% | -21.6% |
| 3 months | — | — |
| 6 months | — | — |