Broadcom Inc. (AVGO): A Bull Case Theory

We encountered a bullish thesis on Broadcom Inc. (AVGO) on Sanjiv’s Subsack. In this article, we will summarize the bull thesis on AVGO. Broadcom Inc. stake has been traded (AVGO) at $ 246.93 as of 6^Y June. AVGO’s Thurly and Forward P/E 90.05 and 37.88, respectively, according to Yahoo finance.

Spacedron808/Shutterstock.com

Broadcom stands at the heart of Amnesty International’s infrastructure, with the high demand for XPUS network solutions and ETHERNET networks. The company expects at least three of the two classified owners of the deployment of more than a million groups of AI-AIDADADADAD by 2027, as the allocated silicone plays a dominant role.

Shipping shipments are already to three such customers, while four additional large technical companies participate deeply in development, which may expand from AI Tam from Broadcom to more than 60 to 90 billion dollars. The inference of the demand for reasoning increases, as Broadcom expects a more severe slope on Xpu orders until late 2025. The demand for networks is also accelerating, especially in high -density expansion configurations within databases, where the new Tomahawk 6 key is placed from Broadcom, and provides 102.4 TBPS, inappropriately.

Regardless of the artificial intelligence, the VMWAE acquisition has proven to be accumulated, with a strong absorption of the VCF (VSPARE Cloud Foundation) that allows the spread of private artificial intelligence. More than 87 % of the largest Broadcom VCF clients have been adopted, while AR grows in double numbers.

Core Enterprise benefits from an open environmental system and narrow NVIDIA cooperation, as it is clear from the absorption of the AI ​​Private Corporation. The non -AII parts remain slow, although the wide range and storing the server sees sequential growth. The evaluation was extended: at approximately $ 247, AVGO is traded at about 30x from profits forward and 29.6x FCF forward, which leads to 3.3-3.4 %. DCF analysis with conservative assumptions involves a fair value of approximately $ 208, indicating a 15 % premium.

Due to the high severity of research and development and strategic sites in custom silicone networks and artificial intelligence networks, the long -term Broadcom horizons are strong, but it appears that the upward trend in the near -term is limited.

Previously, we highlighted a Buddcom (AVGOC) thesis (AVGO) Written by Dan Regency on Substack in March 2025, which emphasized the exceptional growth moved by artificial intelligence, the integration of VMWare programs, and the leading margins in the industry. The stock has been estimated at about 26 % since our coverage. Sanjiv focuses on Broadcom’s silicone slope, XPU order led by inference, and expanding AI TAM through deep, superior partnerships. While both agree on Broadcom’s centralization in building artificial intelligence, Rijnberk sees the evaluation attractive after pregnancy, while Sanjiv expresses caution in the short term given the distinctive prices of the stock.

Broadcom (AVGO) is listed in our list from 30 shares more popular among hedge boxes. According to our database, 158 AVGO hedge ports held at the end of the first quarter, which was 161 in the previous quarter. Although we recognize the risks and capabilities of AVGO as an investment, our condemnation lies in the belief that some of the shares of Amnesty International are returning more promises to make higher and limited returns than negative risks. If you are looking for a very cheap inventory of artificial intelligence and is also a major beneficiary of the Trump and Bundge tariff, see our free report on The best inventory of artificial intelligence in the short term.

Read the following: 8 best stocks of trench to buy now and 30 The most important shares of artificial intelligence, according to Blackrock.

Detection: Nothing. This article was originally published in Monkey Insider Monkey.