'Halftime Report' Investment Committee debate the AI trade

Market Trends & Industry Dynamics - The AI trade is facing new questions, potentially impacting growth expectations [1][2] - Nvidia's data center revenue is still growing sequentially by 17% from the past quarter to the next, representing over $7 billion in revenue excluding China [4] - Long-term capex and data center spend is projected to be $3 to $4 trillion between now and 2030, implying a compound annual growth rate (CAGR) of 40% to 45% [3][4] - Expectations for AI returns may be ahead of reality, with a report indicating that 95% of customers using AI are not seeing a return on investment [18][19] Company Performance & Strategies - Broadcom's revenue mix is diversified, with 31% from data center AI, 41% from software (including VMware), and the remainder from cyclical businesses [8] - Broadcom has custom ASIC customers expected to grow 60% year-over-year [6] - Nvidia's top two mystery customers accounted for 39% of Q2 revenue, with Customer A at 23% and Customer B at 16% [15][16] Investment Opportunities & Potential Risks - The SMH (semiconductor ETF) is experiencing its worst day since April, indicating potential sector-wide concerns [2] - Some analysts believe that inflated expectations for AI may lead to a significant pullback in stocks [15] - Despite potential digestion periods, the AI theme is expected to persist, driven by strong guidance and investment from various regions [23][25]