Broadcom: Market Is In Disbelief; Don't Be Mistaken

Broadcom is on track to deploying multi-gigawatt AI chip capacity with Anthropic and OpenAI, targeting over $350 billion in AI semiconductor revenue in two years. Yet, the market is wavering, as AVGO's valuation has compressed to under 21x forward earnings, with robust dip-buying support around $360. Revenue estimates for AVGO have improved further, with capacity ramping up and operating margins expected to remain above 68% despite gross margin compression. Current market skepticism is well overdone given the scale of AI deployment and Broadcom's expanding strategic partnerships. I urge everyone to ignore the market's skepticism on the margins compression and potential revenue growth slowdown as AI deployments start to flourish.

Broadcom is Expanding Its Deployment With the Frontier Labs

Broadcom (AVGO) investors are digesting the massive multi-gigawatt deals that the semiconductor behemoth has lined up, but this time it is not only Google