Broadcom Inc.

(NASDAQ Global Select)
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Bullish +75

Broadcom, Marvell, and SanDisk Are Quietly Building Toward a Massive Bull Run

AI infrastructure Company update Guidance raised AI-generated analysis

πŸ“ˆ Broadcom AI revenue exploded 221% last quarter to $16.7 billion, yet the stock remains flat year-to-date at a low valuation of 12x fiscal 2028 EPS.

πŸš€ Management expects AI revenue to reach $115 billion in fiscal 2027 and $230 billion in fiscal 2028, with CEO Hock Tan confirming demand is simply hot.

πŸ’Ό AVGO has secured a long-term agreement with Google to supply future TPU generations and is preparing to ship OpenAI's first custom accelerator.

πŸ“Š Q4 AI revenue guidance is set at $21.7 billion, representing a 236% increase year-over-year.

🎯 The company has achieved nine straight earnings beats and is on target to exceed $30 in fiscal 2028 EPS.

πŸ“‰ Analyst consensus price targets for AVGO are $531.85, implying roughly 50% upside from current trading levels.

βœ… None of the three major AI chip stocks discussed, including Broadcom, carries a single Sell rating among analysts.

Bullish Signals
  • AI revenue surged 221% to $16.7 billion last quarter, demonstrating explosive growth in its core semiconductor business.
  • Management forecasts AI revenue of $115 billion for fiscal 2027 and $230 billion for fiscal 2028, indicating sustained high-growth trajectory.
  • The company has a long-term agreement with Google to supply future TPU generations, securing a major strategic customer.
  • AVGO is on track to exceed $30 in earnings per share for fiscal 2028, supported by nine consecutive earnings beats.
  • Q4 AI revenue guidance of $21.7 billion (up 236%) signals continued robust demand from hyperscalers.
  • The stock trades at only 12x fiscal 2028 EPS consensus, presenting a potential undervaluation compared to its growth profile.
Full Analysis
Broadcom (AVGO) is highlighted as an underperformer relative to peers Marvell and SanDisk, trading up only 3.22% year-to-date despite a massive 221% surge in AI revenue to $16.7 billion last quarter. The article argues that AVGO's stock sits at a low valuation of 12x fiscal 2028 EPS targets compared to its peers, suggesting significant upside potential if the company continues its trajectory toward record territory by 2027. Management guidance indicates strong momentum for Broadcom, with expectations for AI revenue reaching $115 billion in fiscal 2027 and $230 billion in fiscal 2028. CEO Hock Tan confirmed that Q3 demand was exceptionally hot and that the company is on track to exceed $30 in earnings per share for fiscal 2028, supported by a long-term agreement with Google to supply future TPU generations. Key catalysts driving the bullish case for AVGO include a projected Q4 AI revenue guidance of $21.7 billion (up 236%), the production shipments of OpenAI's first custom accelerator, and a history of nine consecutive earnings beats. Analyst consensus targets suggest AVGO could rise to $531.85, representing approximately 50% upside from current levels, with no Sell ratings present in analyst coverage.