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Broadcom (AVGO) – sometimes called “the poor man’s Nvidia” – has surged along with Nvidia in anticipation of big demand for its chips for AI. But – unlike Nvidia – it simply isn’t showing up in AVGO’s numbers. Overall revenue surged 34% in the quarter they announced after the close Thursday but that’s mostly because of the inclusion of VMware’s business. Their semiconductor solutions segment only grew by 4%.

Nvidia’s revenue and profit have surged dramatically over the last three quarters, supporting the huge move in its stock. Revenue over the last three quarters is +188% compared to the comparable period a year ago. But the same can’t be said of AVGO. AVGO’s semiconductor solutions revenue is up only 4% over the same period. In fact, I see no boost to AVGO’s business from the AI gold rush whatsoever. As far as I can tell – unlike Nvidia – the entire move in AVGO’s stock over the last 10 months is due to multiple expansion. Unless I’m missing something, the emperor has no clothes.

AVGO shares are currently -2% in the after hours.

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