Investors understand that Artificial Intelligence models are only as good as their inputs. Sadly, too few investors use the same rigor when thinking about human neural networks. At Broadcom Inc. (AVGO), AI sales shot up 49% year-over-year – one reason we like the stock, writes Joe Markman, editor at Digital Creators & Consumers.
Investing success is a function of what information we allow into our brains. This week, Mary Meeker released her widely acclaimed Trends report. It's the kind of information every investor should devour. Since the 1990s, her research has accurately identified major technology investment trends long before the consensus view.
Dubbed the “Queen of the Internet,” Mary Meeker rose to prominence in the 1990s as an analyst at Morgan Stanley. Her landmark Internet Trends reports accurately forecast the rise of giants like Alphabet Inc. (GOOGL), Amazon.com Inc. (AMZN), and Apple Inc. (AAPL). The 2025 Trends report marks her return to the research spotlight.
Broadcom Inc. (AVGO)
The central theme of the 340-page report is that AI is bigger and more important than all other tech investment trends. Meeker points to adoption, the global nature of the AI “race,” and how the technology will reshape work, productivity, and infrastructure.
There’s a lot of bad information about AI floating around. In February, investors worried that the success of DeepSeek meant the need for computing had been drastically overestimated. But a more efficient LLM reduces costs. If anything, efficiency leads to even greater AI use cases and the need for more compute – an outcome that was later proven as the hyperscalers increased capital expenditures.
Tech investing brings greater volatility. However, AI is a secular trend. Stay with it.
As for AVGO, it just reported solid second quarter financial results. Executives raised guidance for Q3. Shares traded down initially after the numbers.
But perspective is important. Broadcom stock reached a record high last Wednesday. Handicapping earnings reports is tough, yet there wasn’t anything terrible in the results. Be patient.
