Opinions David Burrows
BroadcomAVGOTOP PICKJun 14, 2016
David BurrowsStock price when the opinion was issued
As of Jun 08, 2026. Market Open.
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Premium contentIn the last quarter, the company reported 2.05 USD per share, beating the 2.03 USD estimate by 0.93%. Revenue for the same period reached 19.31 B USD, despite the estimate of 19.26 B USD. For the next quarter, analysts expect 2.40 USD in earnings per share and 22.13 B USD in revenue. Social media mentions are up 350% in the past 24h.
Premium contentWe reiterate this developer of semi-conductor chips used in global AI build out as a TOP PICK. They company's accelerator AI chips unlock customer customization that gives it a unique advantage, especially in data center networks. Analysts expect earnings growth over 45% annually for the next 3-5 years. We also like that cash reserves are growing, while debt is retired and shares bought back. We recommend trailing up the stop (from $340) to $378, looking to achieve $498 -- upside potential of 18%. Yield 0.6%
(Analysts’ price target is $479.40)
It is second place in the semi conductor space for GPU's and can design them a little cheaper than NVDA. Has owned historically as a good financial model but now more for growth in AI. Has made strong acquisitions and has partnerships with Google and META.
Jamie Murray Premium contentPremium contentAVGO is like the smaller cousin of NVDA. Built GOOG's AI program, increasingly making waves with Anthropic (owns Claude). Interesting, but not a shoot-the-lights-out opportunity. He'd buy.
MRVL is trying to take a share of the chips that go into GOOG, and is already involved with AMZN cloud. Be careful. It's not a given that it's a capable designer of cutting-edge chips. Coin flip. We've been fooled before.
NVDA is actually more interesting than both.
They have the best platform in XPU. That's why they are partnering with Alphabet, Anthropic and now Meta (to reach consumers). The latter is a real, long-term partnership. He's owned this the past 5 years. Consistently grows.
Joe TerranovaLeader. His 12-month price target is $470. Extremely high margins as a designer and manufacturer. Whole spectrum of products. Decent dividend. Significant share buybacks.
Buy here, but leave some space to pick it up a bit lower too. Yield is 0.66%.
Kim BoltonPremium contentWe reiterate AVGO as a TOP PICK. The company announced major partnerships with GOOGLE and Anthropic as each seeks to dramatically grow AI. AVGO produces CPU chips that offer 40% energy consumption reductions -- key for growing data centers. Recently reported earnings showed record revenues (up 29%) and a boost to EPS of 28%. Cash reserves are growing while they retire debt and buy back shares. We recommend trailing up the stop (from $230) to $255, looking to achieve $430 -- over 28% of upside potential. Yield 0.8%
(Analysts’ price target is $460.00)
Premium content
Macro fears of AI overspending, diminishing returns, circular financing, and bubble worries. Stock-specific fears of a highly competitive market, top 5 customers account for 40% of revenues, high debt levels from past acquisitions may impact future M&A.
Stunning rise since 2022. Unprecedented thirst for products. Acquisitions continue to be a growth driver. Big cashflow, very sustainable dividend. Seven analyst upgrades over last 30 days.
Trades at 23x PE 2027 earnings, growing at 34%.
This was a merger of Broadcom and Avago, both leaders in their market. Today they are the leader in RF chips which are in every Apple device. Their product offering is so strong that they were able to get a 2-3 year contract out of Apple (AAPL-Q) which Apple does not do. They have a locked-in loaded position in the next generation of iPhones and iPads, which is an expanding market. The 2nd market they are in is automotive. Cars are all becoming more connected to the Internet. This company is going to generate about $5 billion in cash over the next year. It is generating a return on capital of about 7%. Dividend yield of 1.26% which will grow at about 10% a year.