Bloomberg Surveillance · Wednesday, September 16, 2026
Within the AI sector, the profitability is currently highest in the infrastructure components rather than the large language models themselves. Companies like Broadcom are performing well because they are enabling the build-out, while the performance of model developers may depend on their ability to monetize capabilities faster.
“It's interesting to see today the gross margin is highest away from the models.”
“And so companies like Broadcom and many others are doing very, very well, notwithstanding who's the winner of the LLM race.”
“Now I see an environment where the companies that are spending money might actually see some monetization of that spending faster.”