Broadcom: What So Many Analysts And Investors Got Wrong - Buy The Dip
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Michael Fitzsimmons22.43K FollowersFollow5ShareSavePlay(23min)Comments(2)SummaryBroadcom (AVGO) delivered a robust Q4FY25, with revenue up 28% and GAAP EPS up 93% year-over-year. Google TPUs are no longer exclusive to it and are driving AVGO revenue growth.AVGO's AI Trifecta — XPU processors, high-speed networking, and VMWare — drives strategic advantage and strong free cash flow, yielding $26.9 billion in FY25.The $73 billion AI backlog is a minimum, not a cap; management expects order-flow to "accelerate" through 2026.Comparisons with Oracle are not only unjustifiable and irrational, in my opinion they are irresponsible.I reiterate my Buy rating, viewing the recent stock sell-off as an irrational overreaction and a compelling entry point. JHVEPhoto/iStock Editorial via Getty Images I planned to stop writing about Broadcom (AVGO) because it is so well covered on SA it was kinda hard for me to get noticed in the crowd. However, after witnessing this week's response toThis article was written byMichael Fitzsimmons22.43K FollowersFollowMichael Fitzsimmons is a retired electronics engineer and avid investor. He advises investors to construct a well-diversified portfolio built on a core foundation of a high-quality low-cost S&P500 fund. For investors who can tolerate short-term risks, he advises an over-weight position in the technology sector, which he believes is still in the early stages of a long-term secular bull-market. For dividend income, and as a 4th generation oil & gas man, Fitzsimmons suggests investors consider a position in large O&G companies that provide strong dividend income and dividend growth. Fitzsimmons' articles on portfolio management recommend a top-down capital allocation approach that is aligned with each individual investor's personal situation (i.e. age, retired/working, risk tolerance, income, net worth, goals, etc) and might include allocations into investment categories such as the S&P500, technology, dividend income, sector ETFs, growth, speculative growth, gold, and cash.Analyst’s Disclosure:I/we have a beneficial long position in the shares of AVGO, GOOG 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. I am an electronics engineer, not a CFA. The information and data presented in this article were obtained from company documents and/or sources believed to be reliable, but have not been independently verified. Therefore, the author cannot guarantee their accuracy. Please do your own research and contact a qualified investment advisor. I am not responsible for the investment decisions you make.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