Bloomberg Technology Broadcom's Nvidia Moment, Trump Meets With TikTok
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Dec 17, 2024 Amy Klobuchar, a U.S. Senator from Minnesota renowned for her work in antitrust and tech regulation, joins Callie Cox, chief market strategist at Ritholtz Wealth Management, to delve into the intriguing dynamics of the semiconductor market. They discuss Broadcom's rise amid Nvidia's market challenges and the implications for AI investments. Klobuchar highlights the pressing need for sound antitrust measures to combat AI deepfakes and tackle legal issues around TikTok and other tech giants, emphasizing the intersection of innovation and regulation.
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Nvidia's Success and Recent Dip
- Nvidia's stock has seen a significant increase, over 160% this year, fueled by high demand.
- Despite the recent dip, there are no apparent fundamental reasons for concern, as they report being sold out and earnings are limited by supply.
Broadcom's Market Projection
- Broadcom's CEO, Hock Tan, projected a large addressable market for their chips, not a sales target.
- This projection, while significant, is still smaller than Nvidia's projected data center sales for this year.
Balancing AI Investment Risk
- The AI trade, while promising, carries risk due to tech's overvaluation.
- Callie Cox advises balancing portfolios and considering reallocation to less popular sectors.