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Broadcom Inc

Broadcom Inc

AVGO
$370.83USD↓-0.97%-3.63 today

MARKET CAP

1.76T

P/E (TTM)

46.1x

FWD P/E

23.4x

DAY RANGE

$358 – $377

52W RANGE

$273
$495

AI Summary

Stalk
TrimMedium

AVGO is in a clear Stage 4 decline with price below declining EMAs and the 50 DMA. Medium-term bias remains bearish, but the oversold context and price nearing longer-term support suggest deferring execution. The structurally appropriate zone to sell is on shallow rallies into the 9/20 EMA (or 50 DMA) for a rejection entry in line with the Momentum + EPS strategy.

  • ↑Q2 non-GAAP EPS $2.44; revenue grew 48% YoY to $22.19B
  • ↑AI chip revenue hit $10.8B, up 143% YoY
  • ↓Negative earnings yield and high P/E suggest valuation stretch
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Broadcom Inc. (NASDAQ: AVGO) is a leading player in the semiconductor and infrastructure software sectors, known for providing advanced solutions that cater to the increasing demand for AI capabilities and networking technologies. The company operates within high-growth segments, particularly focusing on AI semiconductors and custom silicon, positioning itself strategically as a significant contributor to the ongoing AI revolution.

Bull says

  • ↑Q2 non-GAAP EPS $2.44; revenue grew 48% YoY to $22.19B
  • ↑AI chip revenue hit $10.8B, up 143% YoY
  • ↑Operating margin stable at ~67% despite product-mix shifts
  • ↑FCF reached $10.3B (46% of revenue); $3.1B returned in dividends
  • ↑Management guides AI revenue to exceed $100B by 2027
  • ↑Strong institutional ownership; analysts rate stock moderate/strong buy

Bear says

  • ↓Negative earnings yield and high P/E suggest valuation stretch
  • ↓Gross margin may compress as lower‐margin AI chips gain share
  • ↓Revenue dependent on six major clients, including Google and OpenAI
  • ↓Elevated volatility amid macro and geopolitical uncertainties
  • ↓Negative quality score points to potential liquidity or stability issues
  • ↓Low book-to-price indicates weak valuation support versus peers

Investment themes with AVGO

Datacenter↑ +0.45%

Infrastructure powering data storage and cloud computing

EQIX · DLR · AMT
Semiconductors↑ +0.54%

Chips powering modern tech and AI growth

NVDA · TSM · AVGO
Cybersecurity↓ -2.52%

Solutions securing IT infrastructure and sensitive data

AVGO · CRWD · PANW
Networking & Connectivity Infrastructure↑ +0.56%

INTC · CIEN · MU

Earnings Call · Q2 2025 · Mgmt. Guidance

Updated 06-05-2026bullish

Transcript signals

Bull points

  • The way inference has come out very, very hot lately is, remember, we're only selling to a few customers, hyperscalers.
  • In our fiscal Q2 2025, total revenue was a record $15 billion, up 20% year on year.
  • uh the ai networking portion continues at about 40 percent from when we reported a quarter ago for q1 and at that time i said i expect it to drop it hasn't and and your thoughts on tomahawk driving acceleration for next year and when it kicks in

Bear points

  • Non-AI semiconductor revenue is close to the bottom and has been relatively slow to recover.
  • Revenue of $4 billion was down 5% year-on-year.
  • Non-AI semiconductor revenue is close to the bottom and has been relatively slow to recover.
Read full transcript analysis ›