Broadcom is undervalued: AI chip revenue reached $16.7 billion last quarter, up 221% year-over-year, with $21.7 billion expected this quarter, a 236% increase, while the stock is down 13% in the sell-off and 32% from its peak at just 18 times expected earnings, cheaper than Marvell's 40 times despite faster growth.
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Another company in the field of electronic chips that I believe is currently undervalued is Broadcom (its stock symbol is AVGO). Broadcom designs custom AI chips for the biggest technology companies, such as Google's Tensor Processing Units (TPUs) and OpenAI's Jalapeno accelerators , as well as the networking chips that connect them all.
Its revenue from artificial intelligence chips reached $16.7 billion in the last quarter, an increase of 221% year-over-year. Broadcom expects to generate $21.7 billion this quarter, which would represent a 236% increase in chip revenue .
However, the company's stock has fallen 13% in the sell-off so far, and 32% from its peak, and is currently trading at just 18 times expected earnings.
Celestica is also helping OpenAI and Broadcom build server racks for HAL V. Benio.
The Chat fund also includes Celestica, Vertiv, TSMC, ASML, Coherent, Micron, SK Hynix and Broadcom, making it an excellent way to own the entire AI supply chain.
Shares of TSMC, Micron, SK Hynix and Broadcom are trading at lower forward earnings ratios than the Nasdaq 100, while being among the fastest- growing companies in their respective sectors of the supply chain.
For example, Marvell shares are trading at 40 times their projected earnings, while Broadcom shares are trading at 18 times.
What this channel has said about $AVGO
Ticker Symbol: YOU has 3 calls on this stock; only the adjacent ones are shown.