This is an old version of AVGO from last month (Sep 14, 2026).See the latest version
AVGO
- Price
- $346.28
- Fair value
- $650.00
- Discount
- 46.7%
- Uncertainty
- High
- LSEG rating
- 1.77
- Moat
- Wide
- Next earnings
- 2026-12-10
- Next earnings is estimate
- No
- Company name
- Broadcom
- Sector
- Semiconductors & infrastructure software
- About
- Broadcom makes two kinds of products. The first is semiconductors. This includes custom AI chips, networking chips, and storage chips. The second is infrastructure software. This includes VMware, which Broadcom bought in 2023. Broadcom sells its AI chips to large technology companies. These companies use the chips to build AI data centers.
- Thesis
- Most of Broadcom's fair value comes from the AI chip business. Management said AI chip revenue will reach about $115 billion in FY2027. This is about double the FY2026 number. The stock price does not yet reflect this planned growth. If the growth happens as management says, the stock price can move up to close the gap.
- Risks
- Most of the fair value depends on one forecast: AI revenue reaching $115 billion in FY2027. A slower ramp would lower the fair value. A small number of customers buy most of the AI chips. Two of the largest customers raise money from investors to pay for AI chips. This makes their spending less certain than a customer that pays from its own cash flow. Broadcom competes with Nvidia in AI chips. A shift in market share could change future revenue.
- Recent events
- 2026-09-02: Broadcom reported Q3 FY2026 results. Revenue was $29.59 billion, up 86% from last year. AI chip revenue was $16.7 billion, up 221% from last year. 2026-09-02: Management guided Q4 FY2026 revenue to about $34.8 billion. About $21.7 billion of this is AI chip revenue. 2026-09-02: Management said FY2027 AI chip revenue will be about $115 billion. This is about double the FY2026 number.