Opinions Stan Wong
BroadcomAVGOHOLDSep 12, 2024
Stan WongStock price when the opinion was issued
As of Jul 01, 2026. Market Open.
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Premium contentOur PAST TOP PICK with AVGO has triggered its stop at $378. To remain disciplined, we recommend covering the position at this time. When combined with our previous guidance, this will result in a net investment gain of 2%.
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)
Most important thing to know about semiconductor stocks, AI, and technology: it's exciting at the time, but there are going to be cyclical downturns. So there's going to be a pullback in capital expenditures in the space. Hard to tell when that's going to happen.
Pretty strong chart, with stock price well above the 200-day MA. Higher highs and higher lows. Not overly expensive compared to a lot of tech names out there. Trades around 27-28x earnings, 16-17% growth rate. Forward price to sales is up there at 13x. PEG ratio is 2x.
Need to be very selective in which names you want to own. There are some tech names trading at a PEG of 1x. Starting to see divergence in valuation. We're getting later in the game to be overly exuberant about technology because earnings are now broadening out beyond tech.