NASDAQ:AVGO

Broadcom (AVGO)

360.45
-8.89 (2.41%)
as of Jul 2, 2026, 8:00:00 pm Market Open.
334 watching
0
Investor Insights
star iconJul 2, 2026, 12:00 am

This summary was created by AI, based on 41 opinions in the last 12 months.

Broadcom (AVGO) is currently a focal point in the semiconductor sector, particularly due to its significant role in AI chip production. Several analysts have expressed mixed feelings about the stock, noting its impressive earnings performance yet cautioning on current high valuations and market volatility. The stock has seen substantial price ups and downs, with recent support levels being carefully monitored by experts. While a majority of analysts maintain a positive outlook and recommend the stock as a top pick, concerns about cyclicality and overvaluation persist. Growth prospects seem promising, particularly driven by strong partnerships with companies like Google and META, yet the prevailing sentiment remains cautious as market conditions change rapidly.

consensus icon
Consensus
Buy
valuation icon
Valuation
Overvalued
review icon
Similar
NVIDIA, NVDA
TOP PICK
Own the designer of the chips rather than the cell phone. If you want to be in the tech space, this is the one. (Analysts’ price target is $398.55)
DON'T BUY

More inclined to play the semiconductor group as a whole, through the SMH, which gives you broader diversification. A more broad-based name would be Texas Instruments. In this environment, take some money off the table and move to the telecom names that have lagged a little bit, like Verizon, BCE or Rogers.

HOLD
A diversified semi-conductor business with exposure to hand set mobile phones and data centres. One of the few holdings in this space that offers a good dividend yield. He likes them as a long term hold and they should benefit from the roll out of 5G networks.
TOP PICK

They sell chips to cell phone-makers (Apply is a big customer) and infrastructure and data centres (cloud services rent these centres). Recently, they're selling infrastructure software after buying Symantec. That's a shift in strategy. They've grown cash flow in 5 years exponentially. Rumour is they'll sell their chip business to phone, which would make them a pure play on those data centres, which is a good strategy. Trades a good valuation, pays a 4% dividend and tons of free cash flow. (Analysts’ price target is $349.24)

COMMENT
He likes the semis space in general, but not currently. AVGO has a done a great job over the years in absorbing companies, but they've run out of semi companies to buy and it makes less sense for them to pick up software companies now. Mixed feelings.
BUY ON WEAKNESS
He's been looking at this. They just did an 8% convertible preferred offering that's created stock volatility. $320-325 is his price target. But you could get it cheaper. However, look at Micron, which has been slammed 15% lately. Micron reduced guidance a little, but managers can handle cyclicality, and they have a good mix of products. $58 is his target.
PAST TOP PICK
(A Top Pick Jul 24/18, Up 42%) They are acquiring the chip industry in the US. He bought it last year in the fall following a software company acquisition. It remains a core holding for the conservative chip investor.
PAST TOP PICK
(A Top Pick May 04/18, Up 25%) They've done a fine job acquiring companies and growing. There are rumours they will buy Symantec. Great free cash flow with growing dividends. However, headline risks lie with China through Huawei, which represents 4-5% of Broadcom's revenues. Watch the headlines.
DON'T BUY

He likes their dividend growth, but they grow by acquisition, therefore carry debt. When credit spreads blow out, it'll become tougher for them to do deals--and there are fewer deals for them to do now. Other semis that pay a dividend, though lower, are growing, and are in 5G are Xilinx and NVIDIA.

PAST TOP PICK
(A Top Pick May 30/18, Up 26%) It is an acquisition driven company. He thinks it will continue to do well as it is relatively cheap with good earnings potential.
PAST TOP PICK
(A Top Pick Feb 06/18, Up 14%) They had challenges last year. There was one acquisition that failed and one that the market did not like. They bought CA and the stock was punished once again. Still they recovered from the lows. It makes sense on a long term basis. It is a top of class name.
PAST TOP PICK
(A Top Pick Jan 10/18, Up 1%) You need to be careful in the semiconductor space. He is still buy it and believes in it longer term.
PAST TOP PICK
(A Top Pick Oct 13/17, Down 2%) He still likes the name. It is a standout networking, equipment company. Huge rate of return on capital. It is undervalued. He thinks this is a gem.
DON'T BUY
Very cyclical. Alpha vehicle in that terms. He would be very careful at the moment with the entire semiconductor space. (Analysts’ price target is $287.44)
BUY
He sees this as a cyclical stock. His model price is $357.75. He would be a buyer here. The recent pull back is a good buying opportunity.
Showing 151 to 165 of 189 entries