Broadcom Q4 Earnings: The Price Of Ownership Includes Volatility
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Stephen Simpson20.51K FollowersFollow5ShareSavePlay(12min)Comment(1)SummaryBroadcom (AVGO) delivered robust quarterly results, with AI silicon driving 28% revenue growth and expanding its addressable market and customer base.AVGO's AI-related revenue now comprises nearly 60% of semiconductor sales, and AVGO is leveraging its considerable strength in AI networking and compute silicon to grow its backlog.The legacy semiconductor business should see some improvement in FY'26, but AI growth is far and away the key driver with $73B in the backlog.Despite high valuation, I remain constructive on AVGO, though the trade is increasingly crowded and sensitive to any slowdown in AI investment. Sundry Photography/iStock Editorial via Getty Images With another strong quarter in the books, Broadcom (AVGO) is seeing the sort of post-earnings volatility that is common with fast-growing, high-multiple, popular theme stocks, and with Broadcom now among the clear leaders in AI silicon, it fits all those categories.This article was written byStephen Simpson20.51K FollowersFollowStephen Simpson is a freelance financial writer and investor.Spent close to 15 years on the Street (sell-side, buy-side, equities, bonds).Analyst’s Disclosure:I/we have a beneficial long position in the shares of 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.Recommended For You