Broadcom: VMware-Driven Sell-Off Is A Buying Opportunity

Millennial Dividends 10.14K Followers Follow Summary Broadcom remains a core portfolio holding, despite a recent 6% sell-off driven by a VMware security vulnerability. AI semiconductors now comprise half of AVGO's revenue, with 2027 AI revenue guided to $100B and robust multi-year order coverage. Valuation at 37x blended P/E is supported by 40-50% expected EPS growth, with forward P/E compressing to 14.7x by FY28 if targets are met. Recent weakness presents a compelling entry point, as the AI-driven growth thesis and institutional funding remain intact despite VMware headwinds. JHVEPhoto/iStock Editorial via Getty Images I've covered Broadcom's ( AVGO ) business last time back in November 2024, when the investment thesis revolved around custom chips and integration of VMware. I was bullish on AVGO roughly since 2020, when I added the This article was written by Millennial Dividends 10.14K Followers Follow My investment philosophy is built around one objective: compounding capital over a 30-year horizon to achieve financial independence by age 60. I target 12–15% annual total returns and focus purely on risk-adjusted upside. I don’t subscribe to a specific investing label — value, growth, dividend, or quality. Capital goes where the opportunity is strongest. My portfolio is intentionally concentrated, typically holding no more than 10–15 positions. These are high-conviction investments, not an exercise in diversification for its own sake. Valuation matters, but only in the context of future growth and business quality. I’m not looking for the cheapest stocks — I’m looking for the best risk-reward opportunities. I invest across both US and European markets and use dollar-cost averaging as a core execution discipline to remove emotion and market timing from the process. Outside equities, I own two residential properties. Combined with stocks, this provides geographic and asset-class diversification. Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA, MSFT, 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.