From Nasdaq: 2025-05-02 04:00:00

Broadcom (AVGO) is a Zacks Rank #1 (Strong Buy) stock that manufactures and sells semiconductors for various technology products like smartphones, AI data centers, and automotive industry. Semiconductor solutions made up around 60% of revenues in 2024.

The AI industry is driving significant growth and CapEx spending from tech giants. Grand View Research predicts the global AI market to exceed $1.8 trillion in the next five years. Companies like Alphabet, Meta Platforms, and Microsoft are upping their CapEx projections.

Semiconductor restrictions pose a threat to the industry, but recent news of potential easing of restrictions by the Trump White House is positive. This comes after requests from semiconductor giants like Nvidia to reconsider the rules.

Broadcom (AVGO) is poised for big earnings growth with strong demand for networking products and AI accelerators. AI revenues surged 220% last year, and Zacks Consensus Estimates forecast growth of 42.73% this quarter and 35.52% for full-year 2025.

Broadcom announces a massive $10 billion share buyback program, which can lead to higher share prices by reducing stock supply in the market. Additionally, AVGO has consistently beaten Wall Street estimates for at least 5 years.

Fueled by explosive AI growth, strong CapEx spending, and a significant share buyback program, Broadcom is well-positioned to capitalize on the AI revolution. Investors can expect substantial earnings growth and potential for significant returns.



Read more at Nasdaq: Bull of the Day: Broadcom (AVGO)