Broadcom: The Dip Won't Last Long, Great Opportunity To Own The AI Leader

Broadcom Inc. delivered a record Q2 FY26 with 47.9% YoY top line growth, driven by explosive AI semiconductor demand. Robust momentum in AVGO's AI silicon business, which now comprises 49% of consolidated revenue, and an elevated backlog should support top line growth through FY26. Operating leverage is likely to keep margins strong over the coming quarters despite continued pressure from high R&D. I maintain a BUY rating on AVGO, citing attractive valuation, a leading market position, and demand visibility from multi-year AI customer commitments.

The leading North American AI semiconductor company, Broadcom Inc. (AVGO), exited the first half of FY26 with strong momentum, delivering robust growth across its top line and bottom line.