Added to YB: 2026-03-09
Pitch date: 2026-03-05
AVGO [bullish]
Broadcom Inc.
+2.34%
current return
Author Info
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Company Info
Broadcom Inc. designs, develops, and supplies various semiconductor devices and infrastructure software solutions internationally.
Market Cap
$1.6T
Pitch Price
$328.28
Price Target
650.00 (+90%)
Dividend
0.76%
EV/EBITDA
44.77
P/E
66.57
EV/Sales
24.45
Sector
Semiconductors and Semiconductor Equipment
Category
growth
Broadcom 1QFY26 Earnings, From Discipline Discount to Prime Contractor
AVGO (earnings): Q1 rev $19.31B beat, AI chip sales doubled YoY to $8.4B. Q2 guide $22B, $1.5B above est. $100B AI revenue 'line of sight' for FY27 backed by supply chain commitments through 2028, 10GW customer deployments (Anthropic 3GW, OpenAI 1GW+, Meta/Google multi-GW). AI networking 33% of Q1 AI rev ($2.8B), trending 40% Q2 ($4.3B annualized = $17B). Insourcing deepens Broadcom dependence as prime contractor industrializing custom silicon. Bull: $650 PT on infrastructure platform re-rating. Base: $450. Bear: $240 on capex pause. Trading 38x FWD vs networking biz alone worth $500B at Arista multiples. VMware ARR +19%, software +1% YoY but Q2 guide implies 9% growth. Risks: AI capex pullback, customer program slips, VMware conversion delays.
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