Hock Tan stood in front of microphones to announce that the thing people are buying is still being bought. Demand remains strong. Revenue targets unchanged. The markets needed to hear this the way a toddler needs to hear that yes, the dog is still a dog.
Anthropic reportedly asked everyone to slow down because the models are getting too powerful. Broadcom's CEO responded by saying his AI infrastructure business will continue exactly as planned. This is the corporate equivalent of your neighbor asking you to stop revving your motorcycle at 6 AM and you responding by checking your watch and revving louder.
The concerns about increasingly powerful models apparently do not concern the man selling the shovels. Tan's position makes perfect sense. If someone builds a nuclear reactor in their garage, the guy who sold them the uranium doesn't return the check. He buys a boat.
Retail traders heard "AI revenue targets unchanged" and immediately began crafting thesis statements about semiconductor exposure and hyperscaler capex cycles. They will use terms like "structural tailwinds" and "secular growth drivers" to explain why they bought shares at the top. They will not use terms like "I panic-bought a meme stock because a CEO said a thing."
Tan's statement translates to: we make the chips that power the thing everyone is afraid of, and we plan to keep making those chips. This is reassuring if you own Broadcom stock. This is less reassuring if you care about the increasingly powerful models part. But those people do not set revenue targets.
The real story is that a company selling AI infrastructure announced it will continue selling AI infrastructure despite someone politely suggesting maybe we all take a breath. Stunning development. Alert the Securities and Exchange Commission. CEOs plan to make money regardless of philosophical concerns about their product's trajectory.
Tan's message to Anthropic's slowdown push: thanks for your input, the invoice is still due on the first.
Photo by on Unsplash
Leave a Comment