Parkev Tatevosian, CFA on $AVGO (Nov 6, 2026)

The next undervalued stock I will highlight is Broadcom. I have calculated the fair value of this stock at $523 per share , while the current market price is $326 .

Broadcom is one of the semiconductor stocks that were affected by the results of the US elections. Qualcomm's stock, or rather Broadcom's stock, fell by 1.83% the day after the election results.

Broadcom helps companies like Alphabet develop their own chips that go into these data centers, and if the construction of those data centers slows down , Broadcom's sales could certainly be delayed .

But the good news is that a delay in verification is more likely, not outright cancellation. Given the constraints already in place in the semiconductor industry, the slowdown is not as bad as it might outwardly appear.

These data centers were already slowing down due to power constraints, component limitations, and local communities that opposed the establishment of these data centers anyway.

Therefore, new headwinds from incoming leaders are unlikely to slow down the already slowing data center construction process.

In my opinion, slower expansion is more responsible and wiser, and it is something I have been advocating for several quarters. I own a lot of shares in hyperscale cloud computing companies .

I own shares in Amazon, Microsoft, Alphabet, and MetaPlatforms. Many of them, in fact three out of four, are already generating negative free cash flows , and there are growing concerns about the sustainability of these investment levels.

Therefore, reducing and distributing investment is a wiser course of action and not necessarily a bad thing in my opinion.

I already own Broadcom shares in my portfolio, and I am still interested in adding more to this investment position.