Broadcom Stock Is Still A Compelling Buy

Summary:

  • Broadcom’s strong financials, AI growth, and diversified portfolio support a “Buy” rating, despite recent stock consolidation and market volatility.
  • AVGO’s Q3 revenue reached $13.07 billion, driven by AI-related products, with AI revenue projected to hit $12 billion for the fiscal year.
  • I believe Broadcom’s leadership in networking and AI positions it well for sustained growth and market share gains.
  • Despite AVGO trading at over 30x next year’s earnings, I don’t believe it is overvalued right now.
  • In my opinion, Broadcom is one of the leading AI companies currently, deserving of investors’ attention. Therefore, I reaffirm my “Buy” rating.
Broadcom

G0d4ather

My Thesis Update

I first initiated coverage of Broadcom Inc. (NASDAQ:AVGO) on March 22, 2024, stating that “the company’s strong financials, sales structure updates, and AI prospects pointed to further outperformance in the future.” Since then, AVGO’s total return has outperformed the


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.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


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