Broadcom: The Market Is Overreacting Again, And Now There's A Path To $30 In EPS

Broadcom delivered record Q3 results, with AI semiconductor revenue up 221% YoY and total revenue up 86% YoY, beating consensus estimates. Management set hard targets for ~$115B AI revenue in 2027 and ~$230B in 2028, guiding to over $30 EPS in fiscal 2028 with supply already secured. My earnings model aligns with AVGO’s guidance, projecting $30.89 EPS in 2028; the current valuation offers a compelling risk/reward at ~11x 2028 EPS. I remain long AVGO, as the market’s repeated overreaction presents an opportunity despite real risks around customer concentration, credit exposure, and deployment timing.

The selloff that followed Broadcom's ( AVGO ) Q2 results in June was the entry point I used to start a position, and the market's reaction to Q3 is starting to look like a repeat of This article was written by Steven Fiorillo 42.83K Followers Follow I am focused on growth and dividend income. My personal strategy revolves around setting myself up for an easy retirement by creating a portfolio which focuses on compounding dividend income and growth. Dividends are an intricate part of my strategy as I have structured my portfolio to have monthly dividend income which grows through dividend reinvestment and yearly increases. Feel free to reach out to me on Seeking Alpha Analyst’s Disclosure: I/we have a beneficial long position in the shares of AVGO, GOOGL, NVDA, META, AMZN 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. Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. The investments and strategies discussed within this article are solely my personal opinions and commentary on the subject. This article has been written for research and educational purposes only. Anything written in this article does not take into account the reader’s particular investment objectives, financial situation, needs, or personal circumstances and is not intended to be specific to you. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters. Just because something may be an enticing investment for me or someone else, it may not be the correct investment for you. 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.