Broadcom manufactures valuable hardware that data centers rely on. AI-related revenue is expected to be around 25% of Broadcom's semiconductor solutions revenue this year.
Investors still love Nvidia (NVDA) — but Broadcom (AVGO) is catching up in terms of bullish sentiment, according to Citi analysts who recently met with investors to gauge their views on chipmaker stocks.
Citi analyst Christopher Danely writes investors are feeling Nvidia ‘fatigue.'
The U.S. stock market is likely to be a below-average performer over the next 24 months, according to an obscure sentiment index — as are 25 high-flying, popular U.S. stocks including Nvidia NVDA, -2.61%, Super Micro Computer SMCI, -0.60% and Broadcom AVGO, -1.97%.
Nvidia's price-to-sales ratio is roughly 4x higher than its lifetime average. Broadcom's split comes after making considerable yearly gains.
Broadcom provides a variety of foundational products and services to the semiconductor and infrastructure software industries. The company's particular business focus, paired with its historical earnings multiple, makes it more value-oriented than other chip companies.
Rapid growth in artificial intelligence revenue puts investors in front of a once-in-a-lifetime opportunity.
Since I upgraded Broadcom stock from "Hold" to "Buy" in April 2024, it has gone up by nearly 21% since, beating SPY meaningfully. I think more to come. Q2 FY2024 financial results show revenue growth, particularly in AI, and infrastructure software segments. I believe that AVGO's diversified customer base and high recurring revenues from multi-year contracts position the company for sustainable growth in the coming years.
Broadcom Inc. (AVGO) closed the most recent trading day at $157.35, moving -1.97% from the previous trading session.
If you're looking for cybersecurity stocks to buy in July, a good place to look is the First Trust NASDAQ Cybersecurity ETF (NASDAQ: CIBR ) with $6.76 billion in net assets. It is the largest ETF focusing on cybersecurity stocks, up 13% year-to-date and 28% over the past year.
Broadcom (NASDAQ: AVGO ) stock is in the spotlight after The Information reported that the firm was in talks with OpenAI about producing a new chip. These talks still appear to be in the early stages, as OpenAI has engaged in discussions with other chip designers as well.
We're now in the fifth-generation (5G) wireless internet era, a transformative technology that marks a new age of connectivity. Moreover, given the disruption it has caused and more to come, investing in 5G stocks becomes a no-brainer.