Broadcom: The Valuation At This Point Is Absurdly Inadequate

Broadcom delivered record revenues, gross profits, and free cash flow, driven by surging AI chip and data center demand. AVGO's Semiconductor Solutions business posted 127% year-over-year growth, with a robust free cash flow margin approaching 50%. Guidance for Q4 calls for $34.8 billion in revenue, implying 93% year-over-year growth and further acceleration. The company remains widely underpriced given its AI-driven growth and margin expansion potential in the custom chip business.

Broadcom ( AVGO ) crushed top and bottom line estimates for the third fiscal quarter last week amid continued demand for AI-optimized chips. Broadcom achieved record revenues, gross profits, and free cash flow, which were all driven by continuous