Latest news with #BroadcomInc
Yahoo
3 days ago
- Business
- Yahoo
Citi Maintains Buy Broadcom (AVGO), Raises PT
Broadcom Inc. (NASDAQ:AVGO) is one of the 10 stocks that Jim Cramer and analysts are watching. On June 9, Citi increased its price target on the company stock to $285 from $276 and maintained a Buy rating. Citi believes that the company delivered mixed results, showing strong performance in AI but weaker margins due to product mix and rising options costs. The firm noted the margin outlook was lowered because of a greater semiconductor mix, as the company projects 60% annual AI growth in fiscal 2025 and 2026 from broader adoption. On the same day, Barclays analyst Tom O'Malley also raised the price target on Broadcom to $265 from $215 and maintained an Overweight rating. A technician working at a magnified microscope, developing a new integrated circuit. On June 9, Cramer discussed Broadcom (NASDAQ:AVGO) in detail and said: 'There's nothing more frustrating than watching one of your favorite companies report a strong quarter only to see the market find some reason to send the stock lower, but in retrospect, these can be great buying opportunities. Just look at what happened to Broadcom last week… long-time Cramer fave, big holding in my Charitable Trust. But the stock sold off hard after the company reported on Thursday night… Broadcom (NASDAQ:AVGO) develops and supplies a wide range of semiconductor devices and software solutions used in networking, broadband, wireless communication, data centers, smartphones, and industrial systems. The company's technology supports applications across AI infrastructure, telecommunications, home connectivity, and enterprise computing. While we acknowledge the potential of AVGO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Yahoo
09-06-2025
- Business
- Yahoo
Broadcom Inc. (AVGO): A Bull Case Theory
We came across a bullish thesis on Broadcom Inc. (AVGO) on Sanjiv's Substack. In this article, we will summarize the bulls' thesis on AVGO. Broadcom Inc. (AVGO)'s share was trading at $246.93 as of 6th June. AVGO's trailing and forward P/E were 90.05 and 37.88 respectively according to Yahoo Finance. spacedrone808/ Broadcom stands at the heart of AI infrastructure buildout, with surging demand for its custom XPUs and Ethernet-based networking solutions. The company expects at least three hyperscalers to deploy over one million AI-accelerated clusters each by 2027, with custom silicon playing a dominant role. Volume shipments are already underway to three such customers, while four additional large tech firms are deeply engaged in development, potentially expanding Broadcom's AI TAM beyond the current $60–90 billion estimate. Demand is increasingly inference-led, with Broadcom anticipating a steeper ramp in XPU orders through late 2025. Networking demand is also accelerating, especially in high-density scale-up configurations within data centers, where Broadcom's new Tomahawk 6 switch, offering 102.4 Tbps throughput, is uniquely positioned. AI aside, the VMware acquisition is proving accretive, with strong uptake of VCF (vSphere Cloud Foundation) enabling on-prem private AI deployments. Over 87% of Broadcom's largest customers have adopted VCF, while ARR is growing in double digits. Core enterprise software benefits from an open ecosystem and tight NVIDIA collaboration, as evidenced by uptake of the Private AI Foundation. Non-AI segments remain sluggish, though broadband and server storage saw sequential growth. Valuation is stretched: at ~$247, AVGO trades at ~30x forward earnings and ~29.6x forward FCF, yielding 3.3–3.4%. A DCF analysis with conservative assumptions implies a fair value of ~$208, suggesting a 15% premium. Given high R&D intensity and strategic positioning in custom silicon and AI networking, Broadcom's long-term prospects are strong, but its near-term upside appears limited. Previously, we highlighted a on Broadcom (AVGO) by Daan Rijnberk on Substack in March 2025, which emphasized the company's exceptional AI-driven growth, VMware integration, and industry-leading margins. The stock has appreciated by approximately 26% since our coverage. Sanjiv focuses on Broadcom's custom silicon ramp, inference-led XPU demand, and expanding AI TAM via deep hyperscaler partnerships. While both agree on Broadcom's centrality to the AI buildout, Rijnberk sees valuation as attractive post-pullback, whereas Sanjiv expresses near-term caution given the stock's premium pricing. Broadcom Inc. (AVGO) is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 158 hedge fund portfolios held AVGO at the end of the first quarter which was 161 in the previous quarter. While we acknowledge the risk and potential of AVGO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-06-2025
- Business
- Yahoo
Truist Increases Broadcom (AVGO) PT, Maintains Buy Rating
Broadcom Inc. (NASDAQ:AVGO) is one of the 10 tech stocks on Wall Street's radar right now. On June 6, Truist analyst William Stein increased his price target on Broadcom Inc. (NASDAQ:AVGO) to $295 from $267 and maintained a Buy rating after the company posted solid results for FQ2 2025. The firm noted that the stock dipped due to limited immediate AI upside, compared to investor expectations. However, Stein believes that Broadcom's (NASDAQ:AVGO) long-term AI outlook remains strong and expects new customer gains to be a prospect for future growth. The company reported strong Q2 results, with adjusted earnings per share of $1.58 and revenue of $15 billion, which was a 20% year-over-year growth. The company posted $10 billion in adjusted EBITDA, which represented 67% of revenue, and generated $6.4 billion in free cash flow. For the third quarter, the company projects revenue around $15.8 billion and expects adjusted EBITDA to reach at least 66% of that total. A technician working at a magnified microscope, developing a new integrated circuit. Broadcom (NASDAQ:AVGO) has transitioned from a traditional semiconductor company into a core provider of AI infrastructure. Despite a pullback after earnings, AI revenue surged 46% year-over-year to $4.4 billion, supported by strong networking demand, while non-AI semiconductor and infrastructure software segments were weaker. However, strong momentum is projected into Q3. Broadcom (NASDAQ:AVGO) develops and supplies advanced semiconductor devices and software solutions used across a wide range of technologies, including AI networking, wireless connectivity, storage systems, and industrial automation. The company's products support important functions in consumer electronics, data centers, and communication infrastructure. While we acknowledge the potential of AVGO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-06-2025
- Business
- Yahoo
Broadcom Slips After Earnings Beat, Drags Down Tech ETFs
Shares of Broadcom Inc. (AVGO) fell on Friday, underperforming the broader semiconductor industry and stock market despite reporting stronger-than-expected earnings after the bell on Thursday. The stock dropped as much as 4.5% during the session, giving back some of its recent gains. While Broadcom beat revenue expectations for its fiscal second quarter, the results failed to dazzle investors who had bid up the stock to record highs in the lead-up to the report. The company reported $15 billion in revenue for the quarter, up 20% from a year ago and slightly above the $14.96 billion consensus estimate. It also guided for $15.8 billion in revenue for the current quarter, just a hair ahead of the $15.7 billion analysts were expecting. In other words, the results were solid, but not spectacular. And after a 78% rally off the April lows, expectations were sky-high. The stock closed at a record on Wednesday, so some profit-taking was to be expected. Broadcom has been a major beneficiary of the artificial intelligence boom. The company designs networking products that help connect AI chips inside data centers. It also works with major tech firms like Alphabet Inc. (GOOGL) and Meta Platforms Inc. (META) to design custom AI chips, giving them an alternative to Nvidia Corp.'s (NVDA) market-dominating GPUs. That exposure to AI has helped push Broadcom's market cap north of $1 trillion, making it one of the most influential stocks in major indexes and ETFs. Broadcom is currently the sixth-largest holding in the SPDR S&P 500 ETF Trust (SPY), with a weight of 2.4%. It's the fifth-largest holding in the Invesco QQQ Trust (QQQ), at 5%. It also has heavy representation in semiconductor-focused funds, making up 10.2% of the VanEck Semiconductor ETF (SMH) and 10.1% of the iShares Semiconductor ETF (SOXX). Investors looking for a more aggressive play on the stock have also been using the Defiance Daily Target 2X Long AVGO ETF (AVGX), which offers 2x leveraged exposure to Broadcom. That fund currently has $93 million in assets under management. Despite Friday's dip, Broadcom remains a key AI bellwether and a major driver of performance for many popular | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-06-2025
- Business
- Yahoo
Broadcom Q2 Earnings Beat Estimates, Revenues Up Y/Y, Shares Fall
Broadcom AVGO reported second-quarter fiscal 2025 non-GAAP earnings of $1.58 per share, surpassing the Zacks Consensus Estimate by 0.64% and increasing 43.6% year over revenues increased 20% year over year to $15 billion, surpassing the Zacks Consensus Estimate by 0.37%. Broadcom's revenue growth in the second quarter of fiscal 2025 was driven by strong performance in AI semiconductors and VMware revenues benefited from continued investments from hyperscale partners in AI XPUs and connectivity solutions for AI data shares lost 4.01% in after-hours trading to $249.50 following the fiscal second-quarter results. Broadcom Inc. price-consensus-eps-surprise-chart | Broadcom Inc. Quote Semiconductor solutions revenues (56% of net revenues) totaled $8.4 billion, rising 17% year over year and missing the Zacks Consensus Estimate by 0.17%. AI-related revenues grew 46% year over year to $4.4 billion, which was a major driver of overall revenue growth. This growth was driven by higher shipments of networking solutions to hyperscalers for AI semiconductor revenues declined 5% year over year to $4 the second quarter of fiscal 2025, broadband, enterprise networking and server storage revenues were up revenue was down in the second quarter of fiscal 2025, while wireless revenue also decreased due to software revenues (44% of net revenues) rose 25% year over year to $6.6 billion, bolstered by the successful conversion of enterprise customers to the full VMware Cloud Foundation(VCF) software stack subscription. The non-GAAP gross margin was 79%, expanding 320 basis points (bps) year over and development, as a percentage of net revenues, decreased 210 bps year over year to 10.2%. Selling, general and administrative expenses also decreased 280 bps to 4%.Adjusted EBITDA increased 35% year over year to $10 billion. The adjusted EBITDA margin expanded 720 bps on a year-over-year basis to 66.7%.The non-GAAP operating margin grew 800 bps year over year to 65.3%. As of May 4, 2025, cash and cash equivalents were $9.47 billion compared with $9.31 billion as of Feb. 2, debt (including the current portion of $5.53 billion) was $67.28 billion as of May 4, 2025, compared with $66.58 billion as of Feb. 2, generated $6.55 billion in cash flow from operations compared with $6.11 billion in the previous quarter. The free cash flow was $6.41 billion compared with $6.01 billion in the prior of March 31, 2025, the company paid out a cash dividend of $0.59 per share of common stock, totaling $2.78 billion. For third-quarter fiscal 2025, Broadcom expects revenues of $15.8 billion, suggesting an increase of 21% from the prior-year period's semiconductor revenues are projected to grow 60% year over year to $5.1 billion, whereas non-AI semiconductor revenues are expected to reach $4 Software revenues are expected to grow 16% year over year to $6.7 revenues are anticipated to grow 25% year over year to $9.1 the third quarter of fiscal 2025, enterprise networking and broadband are expected to continue to grow storage, wireless and industrial are expected to be largely EBITDA is expected to be 66% of projected company anticipates the non-GAAP diluted share count to be 4.97 billion. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Currently, Broadcom carries a Zacks Rank #2 (Buy). Amphenol APH, Juniper Networks JNPR and Upwork UPWK are some other top-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. APH, JNPR and UPWK sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks shares have gained 33.2% in the year-to-date period. The Zacks Consensus Estimate for APH's full-year 2025 earnings is pegged at $2.66 per share, up by 1.5% over the past 30 days, suggesting growth of 40.74% from the year-ago quarter's reported shares have lost 4.4% in the year-to-date period. The Zacks Consensus Estimate for JNPR's full-year fiscal 2025 earnings has been revised upward to $2.08 in the past 30 days, suggesting year-over-year growth of 20.93%.UPWK shares have lost 7.7% in the year-to-date period. The Zacks Consensus Estimate for UPWK's full-year 2025 earnings is pegged at $1.14 per share, implying a rise of 9.62% from the year-ago quarter's levels. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amphenol Corporation (APH) : Free Stock Analysis Report Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Upwork Inc. (UPWK) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
