Core Insights - Broadcom has experienced a significant turnaround after a month-long decline, primarily driven by a new deal with OpenAI for AI chips, which resulted in a 10% increase in stock price in one day [1][3]. Company Performance - Broadcom's stock reached an all-time high of nearly $369 on September 9, but subsequently fell around 12% by October 10 due to market reactions to CEO Hock Tan's AI-incentivized pay package [2]. - The recent deal with OpenAI, involving the deployment of ten gigawatts (GW) of custom AI accelerators, is expected to generate billions in new sales for Broadcom [3][4]. Competitive Position - The size of Broadcom's deal with OpenAI matches the 10 GW agreement OpenAI has with NVIDIA and surpasses the 6 GW deal with AMD, indicating Broadcom's strong position in the AI chip market [4]. - Broadcom will supply both custom AI XPUs and networking chips, which are crucial for AI workloads, highlighting the significance of this comprehensive deal [5][6]. Financial Outlook - Analysts had previously underestimated Broadcom's potential, with a recent Q3 earnings call revealing the addition of two major hyperscaler customers, including OpenAI [9][10]. - The current stock price forecast for Broadcom is $372.33, suggesting a potential upside of over 13% based on recent analyst ratings [11][13]. - The consensus price target after the OpenAI announcement indicates a bullish outlook, with many targets set at $400 or higher [13].

Key Points Many AI stocks have continued climbing higher in 2025, pushing up the overall market. However, these three stocks have all been beaten down by short-term worries. They now all trade at exceptional values, making them no-brainer buys. 10 stocks we like better than Marvell Technology › Artificial intelligence (AI) stocks have been the driving force behind the current bull market. Massive spending budgets from big tech companies and investor excitement about the potential for AI has led t ...

Artificial intelligence (AI) is an all-consuming investment thesis that will last for years, if not decades. For many investors, that means investing in some of the year’s hottest stocks, such as NVIDIA NASDAQ: NVDA or Palantir NASDAQ: PLTR. However, many investors are attracted to companies that are building the infrastructure surrounding AI. Think of AI infrastructure like the human body. Semiconductors are like the heart and circulatory system. They supply the processing power that circulates through ser ...

Broadcom Inc. (NASDAQ:AVGO) is included among the 13 Best Consistent Dividend Stocks to Buy Now. Broadcom (AVGO)'s Growth and Consistent Dividends: How the Chipmaker Rewards Shareholders Image by Alexsander-777 from Pixabay Broadcom Inc. (NASDAQ:AVGO), best known for its networking chips, has steadily expanded into corporate infrastructure software over the years. The company also plays an important role in artificial intelligence, as its networking chips allow large AI clusters in data centers to commu ...

Core Viewpoint - Growth stocks are currently expensive, but several smaller companies still present great value for new investors, particularly in the context of the S&P 500's strong performance driven by growth stocks [1][2]. Group 1: Marvell Technology - Marvell Technology specializes in chips for data centers, collaborating with major companies like Amazon and Microsoft [4][5]. - The company designs networking chips and custom AI accelerators, with significant growth potential in AI chip markets [6][7]. - Marvell is pursuing up to $75 billion in potential revenue from over 10 customers for its custom AI accelerators, with shares trading at a forward P/E of less than 27, making it an attractive investment opportunity [7]. Group 2: DraftKings - DraftKings is a leading online sportsbook in the U.S., leveraging its brand strength since the legalization of sports betting in 2018 [8][9]. - The company utilizes extensive customer data to enhance its betting systems and has made strategic acquisitions to improve its product offerings [10]. - Despite challenges from emerging prediction markets and new tax laws affecting bettors, DraftKings shares are considered attractive, trading at an enterprise value to forward EBITDA of around 27, with expected earnings growth from $181 million to $850 million [11][13]. Group 3: Pinterest - Pinterest operates as a discovery engine in social media, primarily attracting a female user base, which is valuable for advertisers [14]. - The platform has seen a 10% year-over-year increase in monthly active users and a 5% rise in average revenue per user, indicating strong growth [16]. - With a share price around $38 and a forward P/E of just 21, Pinterest is viewed as a great value for growth investors, benefiting from strong margin expansion and consistent revenue growth [18].

Core Viewpoint - Broadcom is positioned to capitalize on the disruptive trend of artificial intelligence (AI), with potential for significant revenue growth and stock price appreciation over the long term [2][4][10]. Group 1: Growth Opportunities - Broadcom estimates an addressable market for AI could reach between $60 billion to $90 billion annually in the coming fiscal years, driven by demand from cloud hyperscalers using its custom AI processors and networking chips [4]. - The company is engaged with two additional hyperscalers to develop customized AI accelerators, which are expected to contribute to growth starting next year [5]. - Broadcom has recently been selected to develop custom AI chips for two more cloud hyperscalers, leading to upward revisions in revenue estimates [6]. Group 2: Infrastructure Software Business - Broadcom's infrastructure software business is experiencing robust growth, with a year-over-year increase of 25% in the second quarter of fiscal 2025 [8]. - The private cloud server market is projected to grow from nearly $114 billion in 2023 to over $508 billion by the end of the decade, indicating sustained growth potential for Broadcom's software segment [9]. Group 3: Earnings Growth Potential - Analysts forecast a 36% increase in earnings for Broadcom this year, with expectations of continued double-digit growth in the following years [10]. - If Broadcom achieves an annual earnings growth rate of 20% post-fiscal 2027, its earnings per share could reach $13.88 in five years, potentially driving the stock price to $527, more than double its current value [12][13].

This is the one mega-cap stock to buy on the sell-off.The trillion-dollar club got a little bit smaller over the last few weeks.Tesla (TSLA 4.71%), Broadcom (AVGO 2.08%), and Taiwan Semiconductor Manufacturing (TSM 2.40%) all got the boot as part of the broader sell-off in stocks that hit tech companies particularly hard. All three now sit around a market cap of $800 billion as of this writing.Long-term investors can reasonably expect the three mega-cap stocks to make a run at $1 trillion again, but one sta ...

Core Insights - Marvell Technologies experienced a significant stock decline of over 40% year to date, despite strong revenue growth in data center and AI sectors following its fiscal 2025 Q4 earnings report [1] Group 1: Revenue Performance - Data center revenue surged 78% year over year to $1.37 billion, driven by high demand for electro-optics products and the ramp-up of custom AI chip programs [3][5] - Overall revenue increased by 27% to $1.82 billion, slightly above management's guidance midpoint, with declines in other business areas [4][5] - Enterprise networking revenue fell 35% year over year to $171 million, while carrier infrastructure revenue decreased 38% to $106 million, although both showed sequential recovery [4][5] Group 2: Earnings and Cash Flow - Adjusted earnings per share (EPS) rose 30% year over year to $0.60, exceeding the midpoint of management's outlook [5] - The company generated operating cash flow of $514 million for the quarter and $1.68 billion for the year, marking a record [6] Group 3: Future Guidance - Marvell projects fiscal 2026 Q1 revenue of $1.875 billion, representing approximately 60% growth, with adjusted EPS expected between $0.56 and $0.67 [6] - Management anticipates AI revenue will significantly exceed the previous target of $2.5 billion for fiscal 2026, with key AI custom programs in high volume production [7] Group 4: Market Position and Valuation - The stock trades at a forward price-to-earnings (P/E) ratio of 23 times fiscal 2026 estimates, indicating a more reasonable valuation compared to earlier in the year [9][10] - Despite concerns regarding competition in the partnership for Amazon's Trainium chip, management's comments have provided reassurance to shareholders [8][10]