Broadcom(AVGO) The Motley Fool·2024-12-21 08:15Core Viewpoint - The article discusses the strong performance and growth potential of Broadcom in the AI chip market, positioning it as a viable alternative to Nvidia, which has seen significant stock appreciation but is now considered expensive. Company Performance - Broadcom's organic revenue growth, excluding VMware acquisition revenue, was 9% [3] - The company expects 51.5 billion [8] - The company reported a 51% year-over-year revenue increase to 3.8 billion, making up 26% of total revenue [4] - AI-related revenue for fiscal 2024 was 3.8 billion the previous year [17] - The addressable market for custom AI and networking chips is estimated to be between 90 billion by fiscal 2027 [18] Market Position - Broadcom controls 55% to 60% of the custom chip market, indicating a strong competitive position [7] - The company is expected to maintain healthy double-digit growth rates over the next few fiscal years [12] Valuation Metrics - Broadcom has a price/earnings-to-growth (PEG) ratio of 0.72, which is lower than Nvidia's PEG ratio of 0.82 [20]