Buying Marvell Before Broadcom Is A Big Mistake

Julia Ostian 7.33K Followers Follow Summary Broadcom Inc. remains a high-conviction buy, offering superior growth-adjusted value versus peers despite recent market skepticism post-Alphabet/Marvell deal. AVGO trades at a forward PEG of 0.66x and a FY3 P/E under 14x, reflecting significant earnings expansion potential if execution remains strong. AI-driven revenue is surging, with Q2 consolidated revenue up 48% YoY and Q3 guidance forecasting 84% YoY growth, led by hyperscaler demand. Key risks include high debt (0.7 D/E) and heavy reliance on AI CapEx, but robust order backlogs and multi-year contracts underpin the thesis. JHVEPhoto/iStock Editorial via Getty Images Introduction Broadcom Inc. ( AVGO ) is one of the companies I started following a long time ago, and I covered this stock twice already on this platform. Since both of my Buy ratings, AVGO stock is up, although This article was written by Julia Ostian 7.33K Followers Follow I write about stocks I’m personally interested in adding to my portfolio. I’m not a professional advisor, but I study business and economics and analyze markets full-time. My writing is meant for both complete beginners — I avoid unnecessary complexity — and advanced readers, as I always aim to offer a distinct and well-reasoned perspective.I also run a YouTube Channel called "The Market Monkeys" and break some of the stocks there as well. Analyst’s Disclosure: I/we have a beneficial long position in the shares of AVGO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.