Tuttle on AVGO: "Tempting Right Now" Over NVDA

Core Viewpoint - Broadcom is considered a must-own stock in the AI sector due to its diverse involvement in AI capital expenditures and strategic positioning compared to competitors like Nvidia [1][2]. Company Analysis - Broadcom is involved in various aspects of AI, including hardware, software, and infrastructure, providing a diversification benefit that may mitigate risks if the AI market experiences volatility [4][5]. - The company has a significant partnership with OpenAI, enhancing its relevance in the AI landscape [2]. Technical Indicators - The 50-day moving average is highlighted as a critical technical indicator for Broadcom, as the stock has consistently held above this level during sell-offs, suggesting a potential exit point for traders if it falls below [6][7]. Market Sentiment - There is a recognition of the current market being potentially bubbly, with concerns about vendor financing and the sustainability of companies like OpenAI in generating cash flow [8][9]. - The AI arms race is perceived to be in its early stages, with ongoing developments and uncertainties, indicating a need for investors to maintain hedges and be prepared for market shifts [10]. Industry Context - Calls for more regulation and safety measures in AI development are emerging, reflecting broader concerns within the industry about the implications of rapid advancements in AI technology [11].