Dividend Data on $AVGO (Nov 5, 2026)

and Broadcom, which fell 8.79%.

The second stock I will share today is Broadcom, whose ticker symbol is AVGO. This stock also fell 7.84% today. It has decreased by 13% in the last 5 days. It fell 18.35% last month and is down 14.86% year-to-date.

Broadcom stock has fallen 17.55% in the past year. Like Nvidia, it has also performed well in the last 5 years, growing by 429%. Its compound annual growth rate is 39.57%.

Broadcom stock's earnings per share have increased by 248% over the past 5 years. However, this growth has accelerated significantly recently. It has grown by 199% in the last 3 years.

In the latest quarter, earnings per share increased by 94.45% compared to the previous year.

Similar to Nvidia, this is a capital light business model. They get their chips made by TSMC.

Free cash flow in the latest quarter was $13.67 billion, up 94.55% year-over-year. And they performed great last quarter. Everything indicates that this trend will continue.

The reason why Broadcom's growth has not been as significant as Nvidia's in the past few years is that they were not as focused on the data center business or AI semiconductors before, but it is now becoming a very important part of their business.

Semiconductor solutions accounted for 70.4% of their revenue in the latest quarter, and AI-related semiconductors are becoming the largest business segment within that sector. It is the second largest chip maker for scale-based AI data centers after Nvidia.

Broadcom essentially partners with the entire industry to design their chips. Amazon's Trenium chip, OpenAI's new chip Halapenio—which you may have heard of

And looking at their semiconductor business in the latest quarter, it saw revenue of $20.84 billion, up 127% year-over-year. And it is expected that this growth will continue. To be honest, when I think of Broadcom, I mainly think of the Google TPU business.

If you look at Google's cloud growth in the last quarter, you'll see a big part of it coming from this TPU, which they've now started selling to external customers. So, Google has some part of Nvidia's business inside it.

Google is rapidly increasing its capital expenditure (CapEx). They are trying to make as much TPU as possible. This will only be helpful for Broadcom.

Broadcom stock looks pretty cheap right now. Their earnings per share (EPS) for fiscal year 2027 is expected to be $19.32. This is a 65% increase compared to this year. This implies a forward-looking P/E ratio of 15.5.

Broadcom's P/E ratio based on trailing 12-month earnings is currently in the mid-42nd percentile. But remember, the last 12 months are retrospective, and most of this rapid growth has occurred in the last few quarters.

So in my opinion, forward-looking or future-oriented accounting should be shown for such fast-growing companies, especially where high growth is expected to continue. So, 15.39 is the forward-looking P/E ratio.

Looking at Broadcom's fair value graph, it is trading close to its fair value based on trailing 12-month earnings per share for the last 5 years. The median multiple was 31.2. This company was once traded at a much lower multiple.

It is now growing at a much faster pace than before.

Broadcom was once a big dividend growth company and traded at a very low price. I was buying this stock at the time. To be honest, I sold it too early because I didn't expect such huge growth in their data center business.

Broadcom's business growth has accelerated significantly in the last 3 years. Therefore, the multiple for the trailing 12 months was 41.36. If there is rapid growth, you demand a transaction at a high multiple.

Below 25% of fair value. 403 Intrinsic value per share. This is 35.1% more than today's price. And if we look at it on a forward earnings per share basis, it's even more surprising, because Broadcom's growth is unstoppable.

It will be further accelerated. It will continue to grow bigger, at least in the next year or two. There it is trading well below fair value.

And look at analysts' expectations for Broadcom's earnings per share growth. Honestly, the targets for 2029-2030 are incredible. Based on today's prices, we are talking about six times earnings.

Broadcom's customers include some of the world's largest companies, such as Alphabet and Meta. Additionally, a large part of Anthropic's tech stack is built on Google TPU due to its partnership with Google and Google Cloud.

Anthropic is currently one of the world's leading AI companies. And Broadcom mainly manufactures its chips through TSMC.