That’s a Lot of Orders…

Jim Cramer was talking about the AI boom when he singled out one company for the sheer amount of business coming its way.

“There’s almost nobody that has more orders than Hock Tan, other than Jensen Huang.”

Jensen Huang needs little introduction.

But Hock Tan?

He runs Broadcom AVGO ( ▲ 0.69% ).
And if Cramer’s comparison sounds generous, Broadcom’s latest numbers make it a little easier to understand.

→ The company’s AI semiconductor revenue reached $16.7 billion, up 221% from a year ago and 54% in a single quarter.

Then there’s the order book.↓

→ Broadcom says it has already secured roughly $230 billion in AI revenue for fiscal 2028.

So we went looking at Broadcom’s order book.

Because behind that 221% growth is a surprisingly small group of customers spending an extraordinary amount of money.

Let’s see.⇩

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The Order Book…

So, who’s doing all the ordering?

→ Google. Anthropic. OpenAI. Meta.

1Google GOOG ( ▼ 0.99% ) has its TPUs.
2 OpenAI has Jalapeño.
3 Meta META ( ▼ 0.22% ) has MTIA.
4 Anthropic is deploying huge amounts of Google’s TPU infrastructure.

Its role is to help turn chips designed around a customer’s particular AI workloads into silicon that can actually be manufactured and deployed at enormous scale.

And enormous is becoming a fairly appropriate word here.

→ Anthropic alone is expected to deploy five gigawatts of TPU v8i in 2027.
→ OpenAI’s Jalapeño has already started shipping.
→ Meta is preparing production shipments of its custom MTIA accelerator.
→ Google’s next-generation TPU is ramping too.

!!! A rapidly growing amount of compute.

Which helps explain how Broadcom’s AI semiconductor revenue got to $16.7 billion — and why Hock Tan expects it to keep climbing.

Concerned But Still Spending!

There’s an odd contradiction sitting inside Broadcom’s order book.

Some of the companies spending the most on AI infrastructure are also the ones warning that AI may be advancing too quickly.

Anthropic CEO Dario Amodei has argued that safeguards need more time to keep pace with increasingly capable models. OpenAI CEO Sam Altman has raised similar concerns about where increasingly powerful AI could lead.

Then Jim Cramer asked Broadcom CEO Hock Tan a much simpler question:

Was any of that concern actually slowing AI infrastructure demand?

“Not in the least.”

And the numbers certainly don’t suggest much hesitation.

✱  The people building the technology are warning about how quickly it’s advancing…

while spending billions to make sure it advances even faster.↓

SPONSOR BREAK presented by DealMaker*

While Big Coffee Companies Flinch, This Brand Adapts

When it rains on the $250B coffee market, it pours. 

Heavy downpours caused Brazil, the world’s biggest coffee producer, to lose millions of crops. This loss, coupled with the latest round of commodity swings, has major brands like Folgers raising prices and $SBUX struggling to procure the best Brazilian beans.

Luckily, 70% of Americans prefer a different kind of bean. Enter Green Coffee Company, Colombia’s largest coffee producer. 

GCC controls 45 farms, 10M+ trees, and 10,000+ acres of Colombian farmland. Their regenerative farming practices and innovative processing infrastructure help protect against shocks other producers face. That means their cost of goods doesn’t move with commodity markets, a key advantage in ever-shifting global markets.

While others absorb rising costs, they’re expanding across North America. After reaching their 3,000-store goal earlier this year, they’re targeting hundreds of more locations across Target, Kroger, and more. Become a GCC investor at $1.10/share by September 30.

Disclaimer: Green Coffee Company is offering securities through the use of an Offering Statement that has been qualified by the Securities and Exchange Commission under Tier II of Regulation A. A copy of the Final Offering Circular that forms a part of the Offering Statement may be obtained from:  https://invest.greencoffeecompany.com

The Chips Are Shipping↓

Tan is particularly bullish on what comes next.

He says Google’s TPU v8i is “comparable if not surpasses” Nvidia’s Vera Rubin platform, while OpenAI’s Jalapeño can run its workloads at roughly half the cost of a GPU.

Those are big claims in a market Nvidia still dominates.

But…

The long-term numbers were huge.

The next-quarter numbers were a little less exciting.

→ Broadcom guided fiscal Q4 revenue to $34.8 billion, just shy of the $35.03 billion analysts were expecting.

→ Broadcom expects gross margins of 73%, down 5 percentage points from a year ago.

Part of the reason is the very business growing fastest.

Custom XPUs require a lot of memory, and memory has become increasingly expensive as AI companies compete for supply.

So more AI revenue doesn’t necessarily mean more profit on every dollar.

Then there’s one number sitting underneath that enormous backlog:

→ 71%

Industry estimates suggest that share of Broadcom’s fiscal 2027–2028 XPU deployments could be tied to just OpenAI and Anthropic.

That is a lot of future business riding on two customers.

$230 billion is impressive. How much of it ships — and at what margin — is the next question.

Broadcom vs Nvidia …

Of course, there’s still a rather large elephant in the data center.

→ Nvidia.

Its latest quarter brought in $96.22 billion of revenue.
Its Data Center business alone generated $89.02 billion.

Broadcom’s AI semiconductor business? – $16.7 billion.

So, yes, Nvidia NVDA ( ▲ 0.84% ) is playing on a very different scale.

But Broadcom is moving faster.

Part of that gap comes down to size. Growing 221% gets harder when you’re already selling nearly $90 billion of data-center hardware in a quarter.

✱ But there’s another difference.

Nvidia sells the full AI stack — GPUs, networking and software.

Broadcom specializes in custom chips built around specific customers and workloads.

Or, more simply:

Nvidia builds the platform. Broadcom builds to order.

And Broadcom currently comes with the lower earnings multiple:

→ Nvidia: ~23× forward earnings

→ Broadcom: ~18×

Put simply, investors are paying about $23 for every $1 Nvidia is expected to earn, versus $18 for Broadcom.

No Stampede Yet…

With AI revenue up 221% and that enormous order book, you might expect institutional investors to be piling in.

The numbers are considerably less dramatic.

→ Q1: 163 of 1,022 funds held Broadcom

→ Q2: 170 of 1,006 funds held Broadcom

As a share of the funds tracked, that’s roughly flat.

There has been some movement underneath the surface. Third Point and Two Sigma Advisors were among the notable recent exits.

But taken together, the data points to fairly stable institutional interest rather than a major rush in — or out.

Sometimes the business moves faster than the portfolio managers.

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