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Broadcom Just Posted 221% AI Growth; Buy This Selloff
Seeking Alpha • • business
Key Points:
- Broadcom Inc. reported strong Q3 results with 96% earnings per share (EPS) growth and 86% revenue growth, driven by a 221% year-over-year increase in AI semiconductor revenue and 30% growth in infrastructure software.
- Despite the impressive earnings, Broadcom's shares declined post-earnings, presenting a buying opportunity for investors, especially below $350 and near $300 if it falls that low.
- Management projects Q4 revenue of $34.8 billion and AI semiconductor revenue of $21.7 billion, targeting a 66% adjusted EBITDA margin, indicating continued robust demand and profitability.
- Broadcom's valuation appears attractive with a forward price-to-earnings ratio (P/E) of 31x for 2026 and 18x for 2027, supporting a bullish investment stance.
- The article is authored by analysts from BAD BEAT Investing, who hold a long position in Broadcom and emphasize educating investors on market dynamics and trading strategies.
