Analysts Are Pounding the Table on This Red-Hot AI Stock

Core Insights - Broadcom is a global technology leader in semiconductor and infrastructure software solutions, with a focus on sectors like data centers, networking, and AI [1][4] - The company has significantly expanded its portfolio through strategic acquisitions, notably VMware, enhancing its position in cloud computing and cybersecurity [1][4] Financial Performance - Broadcom reported Q3 2025 revenue of $15.95 billion, marking a 22% year-over-year increase, with adjusted earnings per share of $1.69, surpassing estimates [5][6] - The company achieved record GAAP net income of $4.14 billion and adjusted EBITDA of $10.7 billion, resulting in a 67% EBITDA margin [6] - Free cash flow was reported at $7.02 billion, representing 44% of total revenue, while gross margin reached 78.4% [6] Market Performance - Broadcom's stock has seen a remarkable increase of 78% over the last six months and 14% over the past month, despite a recent 6% decline [3][4] - The company's performance significantly outpaced the S&P 500 index, which returned approximately 17% over the same 12-month period [4] Segment Contributions - AI semiconductor revenue surged 63% year-over-year to $5.2 billion, playing a crucial role in the company's growth [6] - The infrastructure software segment, bolstered by VMware, contributed $6.8 billion, reflecting a 17% year-over-year increase [6] Capital Allocation - Broadcom maintained disciplined capital allocation strategies, paying $2.8 billion in dividends during the quarter [6]