Intel’s AI Bounce? Give Me Broadcom.

Right, so Intel. Everyone’s getting a bit giddy about it, haven’t they? Up 170% since the start of ’25. Honestly, it’s enough to make a cynic like me almost…hopeful. Almost. It’s all this AI buzz, of course. The supercycle, they’re calling it. Sounds a bit dramatic, doesn’t it? Like the tech world’s suddenly decided to have a personality. But let’s be real, when hyperscalers – Microsoft, Alphabet, Amazon – start throwing money around, someone’s going to benefit. The question is, who deserves it more?

Intel’s been trying to reinvent itself as a foundry, which is…ambitious. It’s like deciding to become a pastry chef after a lifetime of building bridges. A lot of effort, a lot of expense, and a nagging doubt that you’re really any good at it. They’ve had a breakthrough with this “18A” manufacturing process, which, fine, sounds impressive. But let’s not pretend it’s magically going to appear on the balance sheet overnight. Last year? Slightly down on the previous year. Slightly. That’s… not exactly the trajectory you want when you’re trying to convince everyone you’re the future.

Look, I’m a trader. I like things that work. And frankly, Broadcom? It just… does. It’s not trying to be something it’s not. It’s not dangling promises of future greatness. It’s just quietly getting on with it, raking in the cash, and signing contracts with everyone who matters – Apple, Meta, Alphabet. The boring, reliable sort. The kind you wish you’d married, really.

Broadcom isn’t relying on a potential win; it’s already winning. It’s building the AI accelerators and networking chips that actually make the AI happen. Without those, all this hype is just…hot air. And as someone who deals in actual assets, I tend to prefer things with a bit more substance. They’re the unsung heroes, honestly. Everyone’s fawning over the AI itself, but who’s building the plumbing?

Last year? Revenue up 24%, net income up 292%. Let that sink in for a moment. 292%. I’m not saying it’s a sure thing – nothing ever is – but it’s a hell of a lot more convincing than hoping Intel’s gamble pays off. And while the AI supercycle is lovely for them, it’s not like they’ll be destitute when it inevitably slows down. They’ve got a solid business underneath it all. It’s comforting, isn’t it? Knowing someone has a plan B…and a plan C.

Let’s talk valuation, shall we? Because that’s where things get really interesting. Intel’s trading at 88.7 times projected earnings. Eighty-eight. Point. Seven. That’s…optimistic. To put it mildly. Broadcom? Well, let’s just say it’s considerably more sensible. Which, as a trader, I appreciate. I like to think I’m leaving a little room for error. You know, in case the robots decide to take over and render all our investments worthless.

Intel reported its earnings recently, and guess what? Disappointing results. The stock plunged 11% after hours. Predictable, really. It’s the same story every time. Build up the hype, promise the world, and then…reality hits. I’ve seen it a thousand times. It’s exhausting, frankly. Broadcom isn’t exactly cheap, mind you. But it’s backed by actual earnings, actual contracts, actual…stuff. I’d trust that over Intel’s speculative story any day. It’s the difference between a sure bet and a lottery ticket, isn’t it?

So, yeah. Intel’s had a good run. But I’m putting my money on Broadcom. It’s not glamorous, it’s not revolutionary, but it just…works. And in this business, that’s all that really matters. Honestly, I’m starting to think I should just invest in plumbing companies. At least that’s a reliable business.

2026-01-29 19:03

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