$AVGO · Ale's World of Stocks · 2026-11-08

we have another technology leader, but this time in the field of artificial intelligence chips with Broadcom, ticker symbol AVGO, which makes up 6.5% of Pelosi’s portfolio, worth about $19.5 million.

Now, if we look at the stock chart , we can see that it has also taken a heavy hit recently, falling by more than 21% in the last month alone, and by about 40% from its all- time high.

Once again, one of the main drivers of these recent sales has been growing concerns about political opposition to data center expansions. And look, I'm sure that in the near term, this will be a heavy burden for many AI hardware companies, especially if any projects are delayed or they have to move to new locations.

But, you know, in the long run, I don't see much merit in this argument from my point of view. Artificial intelligence is rapidly becoming a national priority, with both parties recognizing that if America applies the brakes to its data center infrastructure , our global competitors, including China and others, will happily fill the void.

As I said, even in the worst-case scenario of choosing one state to ban all construction, which is highly unlikely given the amount of tax revenue that could be generated from it, among other things.

Well, these companies, even in that scenario, will probably simply move to another location that allows them to do so.

By the way, I'm not discussing the ethics of all this. I'm just saying that's the reality of our situation when you look at the insane demand for artificial intelligence and cloud computing these days .

This demand is unlikely to diminish given that almost everyone is trying to obtain it, especially all the companies and how they are all trying to compete.

Well, to this day, with or without political headwinds, Broadcom remains one of the best companies specializing in the design of custom AI chips, and I think it really is the best in the field, developing them in direct partnership with other tech giants who put their trust in them, such as Google, Meta, Anthropic , and even OpenAI.

We can see the result of all this in their financial data, where AI chip revenues in the last quarter rose 221% year-over-year to $16.7 billion, while total revenues were nearly $30 billion, resulting in a net free cash flow of over $13.5 billion.

This is unimaginable profitability we're talking about , and even more insane is CEO Hock Tan's prediction that their AI chip sales will reach $58 billion by the end of this fiscal year, then double to $115 billion next year , and double again to $230 billion by 2028, with adjusted earnings per share expected to reach more than $30.

When you combine this meteoric growth with the recent pullback in the share price, you get a price-to-earnings-to-growth (PEG) ratio that is now less than half. It is more than 54% cheaper than the sector average.

So, yes, I remain very optimistic about this stock in the long term, and I have already started buying some shares myself during this dip. Thus, they easily occupied second place in our rankings.

Oh my God, I can't believe I had to put Broadcom in such a low position as fourth, when it's a stock I was recently buying myself when its price was low . So I actually like it a lot at these levels.