Buy Broadcom Stock

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Buy Broadcom Stock

Broadcom Stock: Should You Buy It Right Now?

When we talk about investing in the AI sector, one name that stands out is Broadcom (AVGO). The company designs custom silicon and also makes networking chips that are used by hyperscalers.

One key thing about Broadcom stock is that it was a big winner in the last year. In addition, the recent results of the company also show that things are going really well.

Broadcom's Revenue Continues To Grow

One of the dominant themes in Broadcom is that the AI growth keeps accelerating. The FY2026 Q1 results showed that the revenue of Broadcom was $19.3 billion. That's an increase of 29% y/y, which is quite high, no matter how we look at it.

What's more interesting is that the AI semiconductor revenue reached $8.4 billion with a 106% y/y increase. This was a lot higher than the 74% growth seen in the last quarter.

Looking ahead, Broadcom is expecting its Q2 revenue to be around $22 billion. If Broadcom manages to achieve that, that would mean a growth of 47% y/y.

Recently, the Broadcom CEO also announced that they could earn a revenue $100 billion in 2027. The company plans to earn this much revenue from just the AI chips!

It appears that this tall claim is also backed by Broadcom's backlog, which is now sitting at $73 billion. Also, Broadcom has big customers like OpenAI, Antropic, Meta, Google, and so on.

Last but not least, Broadcom is also doing really well in terms of cash. The free cash flow of Broadcom in fiscal Q1 was $8 billion. The company also gave $10.9 billion back to its shareholders.

There's also news that Broadcom has approved a share repurchase program worth $10 billion. So, that's also something that will send the Broadcom share prices higher.

With all things considered, it is clear that Broadcom will continue to post strong growth in the coming quarters. So, it is a no-brainer to buy the Broadcom stock for the long term.

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