Mar. 3 at 12:18 PM
$AVGO
Since early Dec, Broadcom has dropped nearly 20%, spooking short-term traders. The market seems to price in an AI slowdown, but the numbers tell a different story: FQ4 2025 28% YoY revenue growth + 37% adj EPS growth, operating leverage among the best in the sector.
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Hyperscaler tailwinds are real —
$AMZN,
$MSFT,
$META,
$GOOG are all ramping AI infrastructure spend, directly benefiting Broadcom. With forward PEG at 0.97 vs sector 1.38 and FY27 P/E at 22 (historical avg 29x), valuation is extremely attractive.
Consensus target
$454 implies 42% upside. This is a fundamentally strong, secular AI play being irrationally discounted — perfect setup ahead of FQ1 earnings March 4.