Broadcom Stock Reaches Previous Year's Closing Price Despite Higher Earnings
As of now, Broadcom (AVGO) stock is trading near $350, down from its recent high but back to where it closed in fiscal year 2025. However, the company’s non-GAAP earnings per share have increased by about 43% compared to that period. The drop came after CEO Hock Tan refrained from raising AI chip sales forecasts during June's earnings report, causing a sharp decline of around 13%. Since then, Broadcom has raised its guidance for fiscal years 2026 and beyond. The company now expects $58 billion in AI sales this year and up to $230 billion by 2028. Despite concerns about customer concentration—where the top five customers accounted for nearly half of Q3 revenue—the stock appears undervalued relative to its earnings growth, trading at around 18 times fiscal 2027 estimates.
Tickers: $AVGO