I think $Broadcom(AVGO.US)Broadcom’s reaction shows just how high the expectations around AI have become. An 86% revenue increase and AI chip sales above $16B are phenomenal, but when guidance comes in slightly below consensus, the market immediately punishes it. At this valuation, “good” is no longer good enough — investors are demanding constant upside surprises.

I’m also becoming more selective on AI infrastructure spending. Circular financing doesn’t automatically mean we’re in an AI bubble, but I want to see massive compute investments translate into sustainable revenue and cash flow. That’s why I’m still bullish on semiconductors over the long run, but I’m comfortable using pullbacks to build positions rather than chasing strength.

For now, I’m watching Friday’s non-farm payrolls closely because the jobs data could reshape expectations for the Fed and growth stocks. At the same time, $NVIDIA(NVDA.US)Nvidia’s strength and $Dell Tech(DELL.US)Dell’s AI-server momentum suggest underlying AI demand remains very strong. For me, the key question isn’t whether AI demand is real — it’s whether earnings can continue growing fast enough to justify the expectations already priced in.