Broadcom (AVGO) has a P/E ratio exceeding 70x and pays a small dividend. However, the expected $73 billion AI product backlog could propel AVGO stock to new heights. Value investors should consider AVGO stock despite initial unattractiveness and recent share price pullback.

Broadcom’s growth potential was evident in its record quarterly revenue of $18 billion, with CEO Hock Tan reporting a 28% year-over-year increase. Q4 FY2025 saw a 97% rise in net income and substantial growth in free cash flow and adjusted EBITDA. Despite this, Broadcom isn’t getting the attention it deserves in the financial market.

With a $73 billion AI product backlog anticipated, Broadcom expects significant AI revenue growth in fiscal year 2026. While these are projections and not guarantees, the potential for AVGO stock to reach $800 in five years is promising. Despite concerns about the high P/E ratio, AVGO’s growth pathway is strong.

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Read more at Yahoo Finance: Where Will Broadcom (AVGO) Stock Be in 5 Years?