Broadcom, is now the seventh-largest company in the US by market capitalisation, coming in at a whopping $US155bn. Broadcom designs and manufactures semiconductors used in smartphones, data centres, networking, and storage systems. It also provides enterprise software for cybersecurity and IT infrastructure management. AVGO is riding the AI wave as AI expands, companies need faster chips, better networking, and smarter software, all of which Broadcom provides, boosting its sales and margins. Broadcom reported a record $US15bn in revenue for 2Q25, a +20% YoY increase. This growth was primarily driven by a 46% rise in AI-related semiconductor revenue, reaching over $4.4 billion, fueled by robust demand for AI networking solutions.
Looking ahead, Broadcom projects AI semiconductor revenue to accelerate to $US5.1bn in the 3Q, marking the tenth consecutive quarter of growth, as demand from hyperscale partners continues to rise. We believe AVGO is well-positioned to further cement its leadership in the AI semiconductor market and its strategic position in enterprise software, positioning the company for sustained growth in the rapidly evolving AI landscape.
- We like AVGO as it slowly retraces recent gains.
MM is cautiously bullish towards AVGO around $US330
Add To Hit List
