Broadcom: Buy The Tantrum - Again

Summary Broadcom Inc. (AVGO) is reaffirmed as a STRONG BUY with a $604 base case price target, reflecting robust AI revenue durability. AVGO's AI revenues are underpinned by multi-year, signed commitments, with FY27 and FY28 AI revenue guidance at ~$115B and ~$230B, respectively. Three reinforcing moats—custom-silicon design, near-monopoly in AI networking, and VMware-driven software—support AVGO's long-term compounder thesis. Risks include Google’s multi-sourcing and circular financing exposures, but these are either distant or bounded; dollar-cost-averaging is recommended. nicoletaionescu/iStock via Getty Images Investment Thesis In my last article on Broadcom Inc (NASDAQ: ( AVGO )), I addressed whether the stock slump at the time was evidence of the acceleration of AVGO’s AI business breaking, or whether the market This article was written by Vinay Utham, CFA 1.56K Followers Follow An independent investor in the Indian and US equity markets with a CFA Charter and a PhD in Finance from University of Durham, U.K. I hold an Honorary Associate Professor in Finance and Corporate Governance title at Brunel University London. I have a YouTube and a Podcast channel, titled The Stock Doctor,' where I discuss my views on the US and Indian markets every week. In addition, I actively undertake quantitative research in the areas of US equities, Behavioural Finance, Corporate Governance, Activist Hedge Funds, Cryptocurrencies and M&A , and have published in top-ranked peer-reviewed journals. Analyst’s Disclosure: I/we have a beneficial long position in the shares of AVGO, GOOGL, NVDA 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.