Broadcom Inc. (AVGO): A Bull Case Theory

Core Thesis - Broadcom Inc. (AVGO) is positioned strongly in the AI infrastructure market, with increasing demand for its Ethernet products and a robust pipeline of potential customers [2][3][4]. Financial Metrics - As of September 11th, Broadcom's share price was $359.63, with trailing and forward P/E ratios of 92.21 and 39.53 respectively [1]. Market Position and Growth Drivers - Broadcom's Ethernet solutions are experiencing high demand, with scale-up unit volumes five to ten times higher than scale-out, indicating a shift towards larger deployments [2]. - The company has three existing hyperscale customers and interest from four additional XPU prospects, suggesting a strong future growth pipeline [3]. - The integration of AI workloads into Broadcom's product offerings enhances its competitive advantage, particularly in high-performance computing [3]. Analyst Sentiment - Rosenblatt raised its price target for Broadcom to $340, reflecting confidence in the company's growth and strategic positioning in AI and semiconductors [4]. - Previous bullish theses highlighted AI-driven revenue growth and strong free cash flow, with the stock appreciating approximately 84% since March 2025 [5]. Hedge Fund Interest - As of the end of the first quarter, 158 hedge fund portfolios held AVGO, a slight decrease from 161 in the previous quarter, indicating fluctuating interest among institutional investors [6].