From NASDAQ: 2024-11-13 10:30:00

Broadcom’s AVGO shares have surged 81.1% in the past year, outperforming the Computer & Technology sector and Electronics Semiconductors industry. The company benefits from strong demand for its networking products and AI-specific integrated chips, with notable users like Alphabet and Meta Platforms. AVGO stock trades above moving averages.
Broadcom anticipates AI revenues exceeding $12 billion in fiscal 2024, with expected overall revenues of $51.5 billion. The company’s innovative portfolio includes AI networking solutions and high-performance Ethernet adapters to address escalating AI connectivity demands. AVGO also offers VMware Cloud Foundation for enterprises’ digital transformation.
In the third quarter of fiscal 2024, AVGO saw robust demand for custom AI accelerators, Ethernet switching, and optical lasers from hyperscale customers. The company’s earnings estimate for fiscal 2024 shows positive growth trends, with a projected revenue increase of 44.01% year-over-year.
AVGO stock has a Value Score of D, indicating stretched valuation. The forward 12-month Price/Sales ratio is 13.63X, higher than the sector median. Despite some apprehensions, AVGO’s strong portfolio and expanding partner base contribute to solid top-line growth potential.
Broadcom has a Zacks Rank #2 (Buy), with a Growth Score of C. While AVGO may be considered a risky investment due to valuation concerns, its growth potential and partnership expansion justify the premium valuation. The company’s consistent earnings beats and strong portfolio support this outlook.
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Read more at NASDAQ: 3 Reasons Broadcom Stock is a Buy: Beyond the 81% Jump in a Year