Broadcom Inc. (NASDAQ:AVGO) is one of the stocks Jim Cramer answered questions about. Noting that the market expanded out of the tech stocks, a caller asked if they should hold or sell their position in the stock. Cramer replied: I’m going to make a suggestion, not hold, not sell, but buy. I think that Broadcom is down to the level, it’s about a hundred points from its high. Hock Tan has made quarter after quarter after quarter. I think he’ll do it again. It’s got growth. Software and hardware both are on ...

Key Points Broadcom stock rose over 500% in the past five years. Broadcom's AI-specific backlog has increased to $73 billion. 10 stocks we like better than Broadcom › There are a lot of hyperscalers dominating the headlines as of late, but there's one tech company with an AI-driven backlog, multiple revenue streams, and a history of strong execution that could stand out from the rest in the coming years. That company is Broadcom (NASDAQ: AVGO), and it could be one of the best growth stocks to buy a ...

Group 1 - Broadcom Inc. (NASDAQ:AVGO) is projected to have strong earnings growth over the next five years, with Wells Fargo upgrading its rating to Overweight and raising the price target to $430, indicating a potential upside of approximately 24% [1] - Wells Fargo has increased its revenue and EPS estimates for Broadcom, projecting revenues of $100.3 billion and EPS of $10.80 for CY26, and $143.8 billion and EPS of $15.35 for CY27, up from previous estimates [2] - The company is expected to see significant growth in its AI semiconductor revenue, projected to reach $52.6 billion in 2026 (up 116% YoY) and $93.4 billion in 2027 (up 78% YoY) [3] Group 2 - Wells Fargo anticipates low double-digit YoY growth for Broadcom's Infrastructure Software segment in FY26, with a backlog of nearly $73 billion at the end of FY25 [4] - Citi has reaffirmed a 'Buy' rating on Broadcom with a price target of $480, citing the company's increasing AI sales as a key factor [4] - Broadcom, founded in 1961, operates in the semiconductor and infrastructure software sectors globally [5]

Core Insights - The article provides a comprehensive evaluation of Broadcom in comparison to its competitors in the Semiconductors & Semiconductor Equipment industry, focusing on financial metrics, market position, and growth potential [1] Company Overview - Broadcom is a leading semiconductor company that has diversified into infrastructure software, serving sectors such as computing and connectivity, and has a notable presence in custom AI chips [2] - The company is a result of consolidation, incorporating various former companies in both chips and software sectors [2] Financial Metrics Comparison - Broadcom's Price to Earnings (P/E) ratio is 73.42, which is 0.77x lower than the industry average, indicating potential undervaluation [3] - The Price to Book (P/B) ratio of 20.43 is 2.33x the industry average, suggesting that Broadcom may be overvalued in terms of book value [3] - The Price to Sales (P/S) ratio of 26.60 is 2.31x the industry average, indicating potential overvaluation relative to sales performance [5] - Broadcom's Return on Equity (ROE) stands at 11.02%, which is 5.69% above the industry average, reflecting efficient use of equity to generate profits [5] - The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $9.86 billion is 0.25x below the industry average, suggesting potential lower profitability [5] - Gross profit is reported at $12.25 billion, which is 0.36x below the industry average, indicating lower revenue after production costs [5] - Revenue growth of 28.18% is significantly below the industry average of 33.38%, suggesting challenges in increasing sales volume [5] Debt to Equity Ratio - Broadcom's debt-to-equity (D/E) ratio is 0.8, placing it in a middle position among its top four peers, indicating a balanced financial structure with a reasonable debt-equity mix [8] Key Takeaways - Broadcom's financial ratios suggest it may be overvalued compared to its peers, with a low P/E ratio and high P/B and P/S ratios [9] - Despite a high ROE, the company faces challenges with low EBITDA, gross profit, and revenue growth compared to industry peers [9]

Core Insights - The article provides a comprehensive comparison of Broadcom against its competitors in the Semiconductors & Semiconductor Equipment industry, focusing on financial metrics, market position, and growth prospects [1] Company Overview - Broadcom is a leading semiconductor company that has diversified into infrastructure software, primarily serving computing, wired, and wireless connectivity [2] - The company is a fabless designer with some in-house manufacturing and has a significant presence in custom AI chips for large language models [2] - Broadcom's business is a result of consolidation, incorporating various former companies in both chips and software sectors [2] Financial Metrics - Broadcom's Price to Earnings (P/E) ratio is 73.23, which is lower than the industry average by 0.77x, indicating potential value [3] - The Price to Book (P/B) ratio of 20.37 exceeds the industry average by 2.33x, suggesting it may be trading at a premium [5] - The Price to Sales (P/S) ratio of 26.54 is 2.31x above the industry average, indicating possible overvaluation in sales performance [5] - Return on Equity (ROE) stands at 11.02%, which is 5.69% above the industry average, reflecting efficient equity utilization [5] - EBITDA is reported at $9.86 billion, which is 0.25x below the industry average, indicating potential profitability challenges [5] - Gross profit is $12.25 billion, 0.36x below the industry average, suggesting lower revenue after production costs [5] - Revenue growth of 28.18% is below the industry average of 33.38%, indicating struggles in increasing sales volume [5] Debt to Equity Ratio - Broadcom's debt-to-equity (D/E) ratio is 0.8, placing it in the middle of its peers, indicating a balanced financial structure with a reasonable debt-equity mix [8] Key Takeaways - The low P/E ratio suggests Broadcom may be undervalued compared to its peers, while high P/B and P/S ratios indicate that the market values its assets and sales highly [9] - High ROE combined with low EBITDA, gross profit, and revenue growth may signal challenges in profit generation and growth relative to industry peers [9]

Core Insights - The article provides a comprehensive analysis of Broadcom and its position within the Semiconductors & Semiconductor Equipment industry, highlighting key financial metrics and growth prospects for investors [1] Company Overview - Broadcom is a leading semiconductor company that has diversified into infrastructure software, serving sectors such as computing and connectivity, and has a notable presence in custom AI chips [2] - The company is primarily a fabless designer but also engages in some in-house manufacturing, resulting from the consolidation of various former companies [2] Financial Metrics - Broadcom has a Price to Earnings (P/E) ratio of 73.23, which is 0.77x lower than the industry average, indicating potential for growth at a reasonable price [3] - The Price to Book (P/B) ratio stands at 20.37, which is 2.33x the industry average, suggesting that Broadcom may be overvalued in terms of book value [3] - The Price to Sales (P/S) ratio is relatively high at 26.54, which is 2.31x the industry average, indicating potential overvaluation based on sales performance [5] - The Return on Equity (ROE) is 11.02%, which is 5.69% above the industry average, reflecting efficient use of equity to generate profits [5] - Broadcom's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is $9.86 billion, which is 0.25x below the industry average, suggesting lower profitability [5] - The gross profit is $12.25 billion, indicating a performance that is 0.36x below the industry average, which may reflect challenges in revenue generation after production costs [5] - The revenue growth rate of 28.18% is below the industry average of 33.38%, indicating potential struggles in increasing sales volume [5] Debt to Equity Ratio - Broadcom has a moderate debt-to-equity ratio of 0.8, suggesting a balanced financial structure with a reasonable level of debt and reliance on equity financing [8]

Core Viewpoint - Broadcom Inc. is viewed positively by market analysts, particularly in light of recent developments in the AI sector and its strong financial performance despite recent stock declines [1][2]. Company Overview - Broadcom Inc. (NASDAQ:AVGO) specializes in semiconductor devices and infrastructure software, providing solutions for networking, connectivity, and storage [2]. - The company's products are utilized across various applications, including data centers, telecommunications, broadband, smartphones, industrial systems, and AI networking [2]. Recent Performance - Broadcom experienced a significant stock decline of 11.4% following a disappointing earnings report, which also affected the broader AI data center stock group [2]. - Despite the recent downturn, Broadcom reported a healthy top and bottom-line beat, along with strong sales and EBITDA guidance for the current quarter [2]. Market Sentiment - Analysts express confidence in Broadcom's CEO, indicating a strong trust in the company's leadership and strategic direction [2]. - The potential for OpenAI to raise $100 billion at an increased valuation of $830 billion is seen as a positive indicator for companies like Broadcom and NVIDIA, suggesting a bullish outlook for the sector [1].

Group 1 - Broadcom Inc. experienced a significant stock drop of 11.4% following its earnings report, which was poorly received, similar to Oracle's 10.8% decline [1] - Despite the stock drop, Broadcom reported a healthy top and bottom-line beat, along with strong sales and EBITDA guidance for the current quarter [1] - The company supplies semiconductor devices and infrastructure software for various applications, including data centers, telecommunications, and AI networking [2] Group 2 - There is a belief that certain AI stocks may offer greater upside potential and carry less downside risk compared to Broadcom [3] - The article suggests that there are undervalued AI stocks that could benefit from current market trends, including tariffs and onshoring [3]

Core Insights - The article evaluates Broadcom in the context of the Semiconductors & Semiconductor Equipment industry, focusing on financial metrics, market position, and growth prospects [1] Company Overview - Broadcom is a leading semiconductor company that has diversified into infrastructure software, serving sectors like computing and connectivity [2] - The company is primarily a fabless designer but maintains some in-house manufacturing capabilities [2] - Broadcom's portfolio includes products from various acquisitions, including legacy Broadcom and Avago Technologies in chips, and VMware, Brocade, CA Technologies, and Symantec in software [2] Financial Metrics - Broadcom's Price to Earnings (P/E) ratio is 68.35, which is significantly below the industry average by 0.75x, indicating potential undervaluation [3][5] - The Price to Book (P/B) ratio stands at 18.94, which is 2.3x the industry average, suggesting the company may be overvalued in terms of book value [3][5] - The Price to Sales (P/S) ratio of 24.77 is 2.28x the industry average, indicating potential overvaluation relative to sales performance [5] - Broadcom's Return on Equity (ROE) is 11.02%, which is 5.84% above the industry average, reflecting efficient equity utilization [5] - The company's EBITDA is $8.29 billion, which is 0.21x below the industry average, suggesting lower profitability [5] - Gross profit is reported at $10.7 billion, indicating 0.32x below the industry average, which may affect revenue after production costs [5] - Revenue growth of 12.93% is significantly lower than the industry average of 32.88%, indicating potential challenges in sales performance [5] Debt-to-Equity Ratio - Broadcom's debt-to-equity (D/E) ratio is 0.8, positioning the company in the middle compared to its top four peers, suggesting a balanced financial structure [8]

Financial Performance - Broadcom Inc. reported record quarterly revenue of $18.0 billion for Q4 2025, representing a 28% year-over-year increase, primarily driven by a 74% increase in AI semiconductor revenue [1] - Income from continuing operations for Q4 2025 was $8,518 million, up from $4,140 million in Q4 2024, indicating increased operating income [2] - The company anticipates total revenue of $19.1 billion and an adjusted EBITDA of 67% for Q1 2026 [2] Revenue Breakdown - Infrastructure software revenue for Q4 2025 was $6.9 billion, reflecting a 19% year-over-year increase [3] - Broadcom ended FY 2025 with a $73 billion infrastructure software backlog, up from $49 billion a year ago [3] - The company forecasts infrastructure software revenue to be approximately $6.8 billion in Q1 2026 and expects low double-digit percentage growth for FY 2026 [3] Market Sentiment - Following the earnings release, Morgan Stanley's Joseph Moore assigned an "Overweight" rating to Broadcom's stock and raised the price target from $443 to $462 [4]