Broadcom: More Growth Ahead

Summary:

  • Easing monetary policy and significant investments in data centers from major players like BlackRock, Microsoft, and Nvidia position Broadcom to benefit from AI infrastructure demand.
  • Stellar recent financial performance, coupled with a strong full-year AI revenue guidance boost, suggests that the integration of VMware is progressing well.
  • AVGO’s valuation is attractive compared to peers, with a fair value estimated at $865 billion.

Broadcom

G0d4ather

Investment thesis

My previous bullish thesis about Broadcom (NASDAQ:AVGO) aged extremely well as the stock delivered a 27% return since early June. To add context, the S&P 500 grew by 8% over the same period.

I remain extremely


Analyst’s Disclosure: I/we have a beneficial long position in the shares of AVGO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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