Broadcom’s Comedy of Errors in the AI Age

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Broadcom (AVGO) leaps today with the vigor of a caffeinated gazelle, spurred by Oracle’s latest pronouncement on cloud infrastructure. At 3:30 p.m. ET, its shares soared 8.6%, while the S&P 500 dozed at 0.1% and the Nasdaq Composite yawned downward by 0.3%. One might suppose the market had donned a mask of surprise.

Oracle, that grand architect of silicon ambition, has declared its cloud infrastructure revenues shall swell 77% annually-culminating in $18 billion this fiscal year. A mere appetizer, if one believes its four-year forecast of $144 billion. Such figures, like a nobleman’s ledger, require neither proof nor reason, only the alchemy of investor credulity. As a supplier of chips and software, Broadcom’s fortunes now ride this delusional carousel.

Broadcom’s Leap and Oracle’s Grand Farce

Oracle’s quarterly performance, though modest, was eclipsed by its guidance-a performance akin to a poet reciting sonnets to a sleeping audience. Yet the market, ever the credulous suitor, now courts Oracle’s fantasies. The company’s $300 billion deal with OpenAI, as reported by The Wall Street Journal, is but another stanza in this operatic delusion.

Four years from now, Oracle envisions $144 billion in cloud infrastructure sales. One wonders if this requires the invention of new alphabets to count such sums. The CEO, a modern-day Alceste, mistakes ambition for arithmetic. Broadcom, as the court’s fawning sycophant, now shares in this folly.

What Lies Beyond the Curtain?

Broadcom, like a merchant of Venice, has long profited from the AI gold rush. Yet Oracle’s projections-700% growth over four years-resemble a magician’s trick: plausible until the rabbit is revealed to be a pigeon. The market’s recent skepticism toward AI stocks suggests investors are awakening to the theater. But Oracle’s latest act, with its OpenAI pact, may yet hypnotize them anew.

In this grand comedy, the true question is not whether Broadcom’s chips are sufficient, but whether the world can sustain such a crescendo of delusion. For now, the curtain remains up, and the stock price dances to the tune of hubris. 🎭

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2025-09-11 00:20