assume we’ll get some upgrades tomorrow $iclr even a slow grower cro is catching a demand wave
Anyone have a strong take on medpace $medp
$ICLR
-Cowen raises ICON target to $197 from $164
Buy
-Mizuho raises target to $190 from $180
Outperform
-BMO raises target to $187 from $160
Outperform
-Baird raises target to $186 from $168
Outperform
-RBC raises target to $185 from $126
Upgrades to Outperform from Sector Perform
-Barclays raises target to $175 from $160
= Weight
-Citi raises target to $165 from $140
Neutral
-Bank of America raises target to $150 from $125
Underperform
-JPMorgan raises target to $135 from $130
Neutral
Replying to @chipflare
im overly concentrated and super high beta... have been positioned this way since before deepseek r1. so discount this heavily, it says more about my portfolio than it says about the market.
but to your question. earnings reactions generally - air is coming out of broader equities, rates and credit too much for my comfort. impossible to say what the market is saying, but it doesn't feel bullish risk assets. when the earnings are bullish and the price action is bearish, i get a little tight.
i'm a distressed investor at heart.
$stx entry was may 2025 at $117 pps. was a big position. my largest contributor of the ai cycle to date.
was a fun ride, could have definitely sold the top better.
what went right:
- fundamental thesis was a slam dunk; price and exabyte growth as ai dc growth and training came to pass
- held through the vols
what went wrong:
- sold half too early before the blow off rip higher
- average exit price about 40% off the peak
thanks for laughs seagate and best of luck HDD frens
net short $wdc but will be covering imminently
Replying to @AnnaEconomist
$gm would double if moved to nasdaq and renamed good morning, inc
semis do look a bit cheap here
*D.A. DAVIDSON UPGRADES BROADCOM TO BUY ON AI IPO CATALYSTS & UNJUSTIFIED VALUATION DISCOUNT
D.A. Davidson upgraded Broadcom $AVGO +3% to Buy from Neutral, raising its price target to $400 from $350.
Gil Luria highlighted that Broadcom's valuation trading at just 16x 2027 estimated EPS effectively prices in a near zero probability of successful public market debuts for core AI lab customers like Anthropic and OpenAI.
Luria expects Anthropic's upcoming IPO to proceed with OpenAI potentially following in 2027, unlocking substantial fresh capital that will directly fund sustained multi-billion-dollar demand for Broadcom’s custom AI ASIC accelerators and high performance networking infrastructure.
polling everywhere will have overstated republican turnout and voting
It’s over
but mostly over if trump in all his megalomania colludes with a blue legislature to move the country to the left
Replying to @BillyTheKid_59
Right but it’s getting priced in, just saying the capital is coming to the semis
Replying to @LucidAcademy @acemoney21
theres not a credit crunch though. cds is pure default risk. If theres more credit scarcity thats a function of higher opportunity cost (not default risk).
Replying to @JimmySmallzz
I thought it did react a bit to deepinfer and that gives me pause
Replying to @macdog99
don’t think it’s an immediate term concern but never say never
would still be bullish semis btw
Replying to @AIQuanting
right, so the measurement is % of current payroll
If I’m a tech forward company with 50 employees at $300k each for 15mm annual salary and payroll
Is it hard to see how I get to 150k AI spend per year? Obviously has to be agentics
That would only be possible alongside headcount reduction given that is almost definitionally role replacement
Replying to @acemoney21
these cds markets arent serious - it’s illiquid arb
once we have liquid forward and futures curves the cds will calm down
people will find out the hard way that $1 trillion data center capex is free cash flow negative until it lights up, then it cash flows 20-40% p.a.
by the time it does, another $1tn in the ground does the same and those xpus are suddenly doing $400bn - $800bn fcf p.a and the whole system is cash flow positive
the big bet is whether the token demand is sustainable
per whoever published it today - if we’re spending 0.1% of payroll cost on ai at $100bn annual spend run rate, we’ve only got to spend 0.5-1% for the whole thing to balance
the biggest worry shouldn’t be demand but some algorithmic improvement that allows smaller models on local endpoints
For me don’t think there’s much to worry about that anytime soon, but I will change my mind if something changes
Last 48 hour issuance announcements
- meta $95bn equity
- ant via private credit $avgo 65bn debt
- spcx via nvda 45bn debt
That’s 200 billy capital for likely 400bn xpu purchases
Think semis are gunna be ok
1/Anthropic’s S-1 is out.
2/ Revenue, quarter by quarter ($M)
Q1'25: 376
Q2'25: 787
Q3'25: 1,382
Q4'25: 2,040
Q1'26: 4,731
Q2'26: 11,555
Q2'26 revenue was up 1,368% YoY. Compute & infra costs were up 300% over the same period.
Q2'26 was the first quarter with positive GAAP operating income: $974M.
3/ How “Run-Rate Revenue” is defined
Trailing-28-day consumption fees × 13
+ monthly subscription fees × 12
Three caveats from the S-1:
-It includes customers later found to be violating the usage policy
-It is seasonal: usage dips in summer and winter holidays
4/ Revenue is recognized gross
When Claude is sold through the AWS, GCP or Azure marketplaces, Anthropic is the principal. It books the full amount as revenue, and the cloud provider’s fee goes into Sales, marketing & partnerships.
The marketplace share of revenue has climbed fast:
11% (2023) → 32% (2024) → 47% (2025) → 48% (H1'26)
Adjust for this before comparing multiples with companies that report net.
5/ Distillation
The S-1 puts a number on it:
“we estimate that revenue from such customers represented approximately 5% to 7% of our revenue for the nine months ended September 30, 2026”
These are customers violating the usage policy or commercial terms. Applied to ~$33B of 9M revenue, that’s roughly $1.7–2.3B.
Enforcement was stepped up in Aug–Sep, and the company expects the share to decline. The S-1 says the estimate “requires judgment and may change.”
6/ Visibility is low
RPO at 6/30/26: $10.8B
~75% of that is recognized in the next 12 months, so cRPO ≈ $8.1B
Deferred revenue: $1.65B
Q2 annualized revenue is ~$46B, so cRPO covers less than 20% of it.
80% of revenue is consumption-based, and next year’s revenue depends almost entirely on usage.
7/ The compute bill
Disclosed commitments:
Broadcom TPU leases: ~$161B
SpaceXAI (NVIDIA GPUs): up to $121B, ~$3.1B a month from Dec’26
Google: ≥$115B, plus $125–150B more of TPU capacity in 2028–31
Amazon: ≥$110B
Microsoft: ≥$45B
Nscale: ~$45B
Lambda: ~$41B
AMD: >$20B
That adds up to roughly $780–810B.
8/ The mismatch to watch
Revenue is variable and consumption-driven. Compute costs are fixed, multi-year and take-or-pay.
On top of that, the Broadcom leases, the credit agreement and the convertible notes include cross-default provisions.
This is the single most important risk in the filing.
9/ Demand is real
NRR ~900% (ex-Pro/Max)
Customers paying more than $100K / $1M / $10M a year: 11,900+ / 1,900+ / ~250
No single customer was >10% of 9M’26 revenue
Top 5 customers ≈ 25% of 9M revenue
Q3: 79% of revenue came from outside the top 5, up from 64% in Q1
Claude Enterprise users who also use Claude Code spend ~20x more than those who don’t
10/ Dilution
$77B of convertible capacity: Google $20B, Amazon $15B, Broadcom $42B, settled in shares at a trailing VWAP
Google can buy up to $10B more stock at the IPO price
A Public Benefit Fund already holds 5% of fully diluted shares, and can get up to +2% more for every 50% rise in the share price









