Buy AVGO Stock After 10% Drop?

Core Viewpoint - Broadcom (AVGO) stock has experienced a decline of 9.6% over the past 21 trading days, presenting a potential buying opportunity for investors [1] Company Overview - Broadcom is a $1.5 trillion company with current revenue of $60 billion, trading at $324.63 [6] - The company specializes in semiconductor devices and infrastructure software, including solutions for set-top box system-on-chips, cable, DSL, and passive optical networking [5] Financial Performance - Broadcom reported a net income of $4.32 billion for the fourth quarter, up from $3.52 billion a year ago, reflecting strong earnings performance [3] - The company has achieved a revenue growth of 28.0% over the last 12 months and maintains an operating margin of 39.0% [6] - The stock is currently trading at a P/E multiple of 80.8 and a P/EBIT multiple of 66.6 [6] Stock Performance and Volatility - AVGO stock has shown significant volatility, falling 36.7% from a high of $67.43 on December 27, 2021, to $42.71 on October 14, 2022, compared to a 25.4% decline for the S&P 500 [7] - The stock fully recovered to its pre-crisis peak by May 18, 2023, and reached a high of $369.57 on September 10, 2025, currently trading at $324.63 [7] Investment Strategy - The company is viewed as attractive but volatile, suggesting that a diversified investment approach may mitigate risks associated with holding a single stock [4] - The High Quality Portfolio (HQ), which includes a collection of 30 stocks, has outperformed its benchmark indices, providing better returns with less risk [4][8]