Alphabet & Broadcom — The AI Shift Investors Are Watching

[johnblockbuster]

Alphabet Inc. may not look strong on the surface — flat year-to-date and forming what appears to be a head-and-shoulders pattern — but institutional flows tell a different story. Money Flow indicators have turned positive even as price action remains cautious. Fundamentally, Alphabet has a unique edge: it doesn’t just use AI, it sells its own AI infrastructure. Google’s TPUs undercut GPU pricing significantly, while Google Cloud revenue surged 48% last quarter, with margins expanding sharply. As a software-heavy business, Alphabet also carries minimal tariff exposure.

Meanwhile, Broadcom is positioning for the next phase of AI: inference. While NVIDIA dominates training, inference — running AI models at scale — increasingly favors custom ASICs that are more energy-efficient and cost-effective. Broadcom designs these chips for major tech players, giving it exposure to the scaling phase of AI deployment. An inverse head-and-shoulders pattern is forming on the chart, with a breakout above $350 potentially opening the path toward $420. As AI spending evolves, the edge may shift from training hardware to scalable deployment — and that’s where these two names could surprise the market.

[ed]

i love how we’ve moved from "ai is the future" to "how many tokens per minute can we get for one cent before the grid explodes"