Added to YB: 2024-06-17
Pitch date: 2024-06-17
AVGO [bullish]
Broadcom Inc.
+87.74%
current return
Author Info
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Company Info
Broadcom Inc. designs, develops, and supplies various semiconductor devices and infrastructure software solutions worldwide.
Market Cap
$1.7T
Pitch Price
$181.00
Price Target
1.9K (+436%)
Dividend
0.72%
EV/EBITDA
51.49
P/E
75.46
EV/Sales
27.37
Sector
Semiconductors and Semiconductor Equipment
Category
growth
Broadcom (AVGO)
AVGO: Q2 beat w/ $12.5B rev (+43% YoY, +12% ex-VMW), $2.1B net profit (-39% on restructuring). AI rev +280% to $3.1B (24% of total). Networking +44% to $3.8B (53% of semi rev) on hyperscaler AI demand. Integrating VMW well, margins to match by FY25. Sees AI rev >$11B in FY24, awarded next-gen custom AI accelerators. Fair value ~$1930 (11% upside) on 45% margins, 9% WACC, 36x terminal FCF. Risks: Customer concentration (35% top 5, 20% AAPL), AAPL/GOOGL tensions.
Read full article (17 min)