AVGO — All updates

So then you have to ask yourself, you know, if you could get Fair Isaac FICO, which is like taking the opposite end of the Trump trade, you get this for a one peg, do you go to FICO for a one peg or do you go to Broadcom and get like a 7 peg?

uh software. As far as net margins, software and sales, right? As far as net margins at Broadcom were about 14 percentage points higher at about 54%. So you get a cheaper valuation and better margins at a company like Broadcom than you do at FICO.

So, as desirable as that dip is on FICO, I don't know that you want to take the opposite end of that trade.

The first of the four undervalued semiconductor stocks that I will highlight is Broadcom. Broadcom is a company that helps companies like Alphabet develop their own accelerated computing chips.

Broadcom experienced a sales boom, a real boom by all measures. Revenues are rising significantly, and profits are constantly expanding. The company remains fully booked for the rest of this year, and it looks like it will be for the rest of next year as well.

The first stock on Forbes' buy list is Broadcom, a chip and software giant that has become a true behemoth in the field of artificial intelligence. In the last quarter, its revenue jumped by 86%, and sales of AI chips alone exploded by 221% to reach $16.7 billion.

Management expects more in the next quarter, around $21.7 billion.

Today , I will talk about AMD, Broadcom, Amazon, Meta, and Nvidia.

Broadcom is one of the companies benefiting from a major change in how the world's largest technology companies are building their artificial intelligence infrastructure. Broadcom helps major technology companies design customized AI accelerators, while providing networking technologies that connect thousands of chips within massive data centers.

Then we have a pair of graphs that I consider to be in the discharge phase. Broadcom comes to mind. Break below a major Fibonacci support level, and break below the 200-day moving average.

Paul Tudor Jones famously said that nothing good happens below the 200-day mark. We have momentum that is clearly in the downward range, not exceeding 50 by much, and the stock has performed poorly. All moving averages are trending downwards.

many of these AI companies , including Broadcom and Marvell, are being drawn to, as they are poised to be among the biggest beneficiaries of the AI boom .

Broadcom demonstrates tremendous sales and exceptional growth. Its business has boomed from about $35 billion in sales in early 2024 to nearly $90 billion over the past twelve months.

We have an artificial intelligence behemoth in fifth place, the semiconductor and infrastructure software giant Broadcom, ticker symbol “AVGO”, in which Saudi Arabia significantly increased its stake last quarter, nearly doubling its position, by purchasing more than $50 million in additional shares.

I missed Broadcom by a hair.

and uh broadcast uh Broadcom AVgo. Uh I missed that too. It did shoot up a bit.

The first is Broadcom's stock, which carries the symbol AVGO. It is one of the few AI stocks currently available at a discounted price, and it is a company that goes beyond simply being an AI company.

Broadcom says that more than 99 % of the world's internet traffic passes through some type of the company's technology. Broadcom is much more than just an AI chip manufacturer .

Outside of artificial intelligence, the company is based on a huge number of technologies that we use every day, such as smartphones, Wi-Fi networks, broadband internet , storage, VMware software, and enterprises.

The company also has software for mainframe computers, cybersecurity solutions , as well as businesses in the industrial and automotive sectors.

The second stock on this month's list is Broadcom, and if you've been following the channel for a while, you know that this is a stock I've held in my portfolio for a long time, and I've continued to add capital over the years.

What is interesting is that if you look at my position in Broadcom's growth, you can see that I made a profit of over 180% on my average cost basis , but on my original shares, I made a profit of over 500%, possibly as high as 600%.

But I continued to add new capital to this center.

Well, I'd go straight to the AI market . I'd talk about Broadcom. Right now, Broadcom is valued at $1.6 trillion , so it's not a small company anymore. It's definitely a stock that has benefited a lot from this expansion in AI.

You could call Broadcom—and I wouldn't call it Nvidia's competitor because Nvidia makes GPUs, while Broadcom, among other things, specializes in custom silicon, i.e., application-specific integrated circuits (ASICs).

So, they serve companies like Meta, OpenAI, Anthropic, or Google's Tensor Processors, for example .

We talked about the AI fears yesterday. They hammered chip stocks, but the Broadcom CEO, he's finger wagon. Not so fast. It is not cracking here. Broadcom, ticker AVGO, their stock edged lower in Tuesday in their pre-market trading, falling 4.77% in the previous session.

Risk appetite remained weak with NASDAQ SNP both down. Monday's decline came as leaders at major artificial intelligence companies called for a slower pace of advanced AI development over safety concerns.

The debate raised fears that slower AI development could eventually weigh on demand for chips and data center hardware.

they did actually vote to add Broadcom to the portfolio. There was a bunch of other stocks here, but they voted for Broadcom, and I heavily agree with that, by the way. So, I did go ahead and add I purchased um Broadcom shares for the portfolio.

They've have also been falling more recently after um reporting earnings. And this is a stock I actually made a whole video about Broadcom. And I had already owned it. I I'm up a huge amount on my private larger portfolio because I had bought in a long time ago into Broadcom.

I saw this coming like a long time ago, everything that Broadcom is doing.