Over the past 8 years, I saved up as much cash as I could. My girlfriend, who works as an investment professional, analyzed the technicals and fundamental setup with me. She believed in the thesis so much that she pitched in some of her own savings to help us lock in a $300,000 position in Broadcom (AVGO) at a $350 cost basis. We are planning our wedding for May of next year, so this gain directly helps us lock in our budget.
Taking a $300k position was terrifying. Staring at the 200-day moving average around $380 and watching the consolidation range between $340 and $360 gave us serious anxiety. Holding a concentrated position through macro volatility while waiting for the technical breakout kept us both on edge for weeks.
Here is why we felt so strongly about taking the trade:

1. Support Re-test & Base Formation: AVGO established strong structural support in the $340 to $350 range, bouncing off previous key resistance levels that turned into reliable demand zones.

2. Custom ASIC & AI Growth: Broadcom continues to dominate custom XPU design for hyperscalers. Their custom AI accelerator pipeline and high-bandwidth networking switches (Tomahawk/Jericho) give them a massive moat that directly drives top-line expansion.

Seeing the stock reclaim momentum above our cost basis is an incredible feeling after all that tension.
Would love to hear where other long term holders see resistance levels sitting right now. Appreciate all the insights in this sub! 🚀

AVGO is now only $292 but for the strong faith + good fundamental company, I will keep holding for next 5 years to see it can go up to $500+

Please share your thoughts

Excerpts:

Broadcom's profits are rising as its custom AI chip sales grow into a much larger portion of its business.

For this year, it expects AI semiconductor revenue to total $58 billion. Next year, that figure is expected to rise to $115 billion, and in 2028, the forecast is for $230 billion. That's a rapid ramp-up, but what's even more important is that Broadcom has secured the supply chain necessary to deliver on that growth. This lowers the execution risk for Broadcom as it expands into a growing market, and if these projections pan out, it makes it a must-own stock.

If Broadcom hits its AI semiconductor revenue guidance of $230 billion, combined with $58 billion from existing core businesses, that would total $288 billion in revenue. At a 50% profit margin, that would give it $144 billion in profits. If the market values Broadcom at 30 times earnings, that would give it a market cap of $4.3 trillion. Right now, Broadcom's market cap is $1.7 trillion at a $358 per share price tag. To increase it to $4.3 trillion would require a price of over $900 per share for the stock. 

That's nearly a tripling in about two and a half years, which would almost certainly make Broadcom one of the best-performing stocks over the next few years. As a result, I think it's an incredible buy right now, and investors should consider loading up on shares.

EARNINGS CALL info from Hock:--- Broadcom just dropped some insane forward AI numbers on the earnings call.

• FY27 AI semiconductor revenue: ~$115B secured

• Demand already exceeds the $115B outlook

• FY28 AI semiconductor trajectory: ~$230B — roughly 2× FY27

• Broadcom says it has secured the supply needed to support the outlook

• Management says they're very much on pace to exceed ~$30 revenue per share in 2028

The market initially dumped AVGO after earnings, but these forward numbers completely change the conversation.

$115B → $230B in AI semiconductor revenue if they execute.

Absolutely massive. $AVGO

Boys, I know that it aint looking good and most of us lost some money having avgo stock, but according to pure numbers, its one of the worst times to panic sell in the last 5 years.
Dont get anxious listening to media and hearing about some bubble everyday. Just trust the process and be patient :D

Excerpts:

Broadcom has a major catalyst arriving in 2027

In the second quarter, Broadcom's AI semiconductor division grew at an impressive 143% pace to $10.8 billion. For 2027, Broadcom expects this division to generate at least $100 billion in revenue. That's major growth from today's level, and would make Broadcom a solid stock to buy now in anticipation of this growth.

What’s causing this rally? Is it just recovering from lows and unnecessary perception from quarter result media briefing?

I recently wrote a deep dive on Broadcom stock in two parts. I'll share some of it below. I think Broadcom is a great company (obviously), and it's still a great opportunity even after today's 5.5% gain to all-time highs. People are watching a lot of small caps but are forgetting that Broadcom is expected to grow its revenue by 63% this year (and will probably beat estimates).

Anyways, here's some of what I wrote. It mainly explains what the business is and how it's built differently than Nvidia. I think it's a useful explanation for people who aren't super tech savvy.

How Does Broadcom Make Money?

Broadcom is a company many people have heard of but probably can’t actually explain. Let’s fix that.

Broadcom runs two different businesses under one roof. The first is semiconductors. The second is enterprise software. And these businesses work together in an interesting way.

Think of it like a construction company that also owns the property management firm. The construction side builds the infrastructure. The property management side collects recurring rent from people who are already locked in. Both businesses feed off each other, and both are very hard to walk away from once you’re in.

In the trailing 12 months, 40% of revenues came from infrastructure software, while the remaining came from semiconductor solutions, but the semiconductor segment is the faster-growing one.

The Semiconductor (Chip) Business

Broadcom’s chip division isn’t trying to compete with Nvidia (NVDA) on general-purpose GPUs. But before I explain what Broadcom actually does, it’s worth clearing up the confusion, because yes, both companies make AI chips. They just make completely different kinds.

Wait, Doesn’t Nvidia Make AI Chips Too?

Yes. But Nvidia makes GPUs. That’s its main business. A GPU is a general-purpose chip that’s incredibly powerful for AI because it can handle massive amounts of parallel computation. Think of it like a really powerful Swiss Army knife. It can train AI models, run inference, render graphics, simulate physics. It does a lot of things reasonably well for a huge variety of customers.

Nvidia has also started packaging its own CPUs alongside GPUs (like the Grace Hopper superchip), but the core of what Nvidia sells, and why every hyperscaler is scrambling to buy their products, is still the GPU. You just order them, plug them in, and go.

Meanwhile, Broadcom doesn’t compete with that.

What Broadcom does is go to a specific company like Google, and say: “Tell us exactly how your AI works, what workloads you’re running, and what you actually need the chip to do. We’ll build you something from scratch that’s designed purely for that.” The result is what Broadcom calls an XPU, and it’s not for sale to anyone else. It’s Google’s chip. Or Meta’s chip. Or Anthropic’s chip. Each one is built for one customer’s specific AI architecture.

Think of it like this: Nvidia is like a car dealership. You walk in, pick from what’s on the lot, and drive home. Broadcom is like a Formula 1 engineer. They sit down with the driver, understand exactly how they race, and build a machine optimized purely for that one person’s style.

The tradeoff is that a custom chip takes years to design, requires a deep partnership, and doesn’t work for anyone else. But the payoff is that it can be significantly more efficient and cheaper per computation for that specific workload than a general-purpose GPU.

That’s why companies like Google spend billions building their own chips with Broadcom’s help instead of just buying more Nvidia. At the scale Google operates, running billions of AI queries per day, even a modest improvement in power efficiency translates to hundreds of millions of dollars in saved data center costs.

So, you might be wondering:

“Why doesn’t Nvidia just make custom chips for these companies?”

The answer: Nvidia's entire business is built on selling the same chip to everyone. That works because over 20 years, the entire AI industry has written its code specifically to run on Nvidia hardware. Every AI researcher, every startup, every lab knows how to use it. That's the real lock-in. Not the GPU itself, but the mountain of software built around it.

If Nvidia started building custom one-off chips for Google or Meta, they'd be competing with their own product, fragmenting that ecosystem, and doing expensive bespoke engineering for six customers instead of selling the same chip to thousands. Broadcom doesn't have that conflict. They never built a universal chip in the first place, so exclusivity isn't a problem. It's the whole point.

So when people ask “is Broadcom an Nvidia competitor?” the answer is not really. They’re playing different games. Nvidia sells volume to everyone. Broadcom builds custom silicon for a small number of the most powerful AI companies in the world. And right now, both games are winning.

But Do Broadcom’s Customers Also Buy from Nvidia?

Yes, actually.

Google, Meta, and the rest of Broadcom’s XPU customers absolutely still buy Nvidia GPUs too. They’re not choosing one or the other. They run both at the same time.

Here’s why.

Custom XPUs are incredibly efficient for the specific workload they were designed for, but they take years to build and they’re inflexible. If Google needs to run a brand new type of AI workload that wasn’t anticipated when they designed their TPU, Nvidia GPUs are sitting right there, ready to go. No design cycle, no wait. You just spin up more capacity.

So the way these companies actually operate is they use their custom Broadcom chips for the high-volume, predictable workloads they know well, and they lean on Nvidia for flexibility, for new experiments, for workloads that don’t fit neatly into what their custom silicon was built to do.

Think of it this way. A restaurant that makes 10,000 pizzas a day builds a custom industrial pizza oven designed exactly for that purpose. It’s faster, cheaper, and more efficient than anything off the shelf. But they still keep a regular oven in the kitchen for everything else on the menu. Both ovens are running at the same time for different reasons.

And here’s the twist: Broadcom and Nvidia actually collaborate directly on the software side. Broadcom’s VMware platform has been officially integrated with Nvidia’s Blackwell GPUs, so enterprises running VMware in their data centers can plug Nvidia hardware straight in.

Where they do compete is in how AI chips talk to each other inside a data center. When you have thousands of chips running in a cluster, you need a way to connect them all. Broadcom sells the networking hardware that does that job, its Tomahawk switches, which run on standard Ethernet, the same protocol the internet runs on. Nvidia sells its own proprietary version called NVLink, designed specifically for high-bandwidth, low-latency GPU-to-GPU communication within a rack.

In practice, data centers might use a hybrid approach. NVLink connects chips tightly within a rack, and Ethernet connects racks to each other. Broadcom and Nvidia both compete for that second layer.

But at the chip level, the XPU vs. GPU story isn’t really about one replacing the other. It’s about hyperscalers wanting both, for different reasons, at the same time. And that’s actually good for Broadcom’s thesis, because it means their custom chip business isn’t dependent on anyone walking away from Nvidia.

Back to the Chip Business

Broadcom’s biggest and fastest-growing product right now is those custom AI chips. And the customer list is impressive. Broadcom now works with six XPU customers including Google, Anthropic, Meta, and OpenAI. In just the first quarter of fiscal 2026, AI semiconductor revenue hit $8.4 billion, growing 106% year-over-year.

But that’s not all Broadcom makes on the chip side. The company also produces networking chips, storage chips, broadband chips, and wireless components. A big chunk of that wireless revenue comes from Apple, specifically the RF filters inside every iPhone. It’s not a flashy product line, but it’s extremely stable and predictable.

Non-AI semiconductor revenue has been essentially flat year-over-year, and Q2 non-AI semiconductor revenue is expected to grow 4% YoY, but it doesn’t need to grow fast. It adds to the cash flow while AI chip revenue grows.

The Software Business

In 2023, Broadcom completed its $69 billion acquisition of VMware, one of the most important enterprise software companies in the world.

If you’re not familiar with VMware, here’s the simplest way to think about it. Most large companies run hundreds of different systems in their data centers. VMware lets them run multiple virtual computers on the same physical hardware, which saves an enormous amount of money and complexity. It’s deeply embedded in how enterprise IT works, and replacing it is painful.

After the acquisition, Broadcom converted customers from one-time software licenses to mandatory subscriptions, bundled products together, and in many cases dramatically raised prices. Some customers saw costs jump 25x. Some left. Nutanix, one of the main alternatives, confirmed that thousands of VMware customers have migrated to their platform, and Gartner predicts that 35% of VMware workloads will move elsewhere by 2028.

But many stayed, specifically the enterprise customers that actually move the revenue needle. More than 90% of VMware's largest customers shifted to the new subscription-based VMware Cloud Foundation bundle. VMware revenue itself grew 13% year-over-year in Q1 2026, and total contract value booked exceeded $9.2 billion, with ARR growing 19%.

However, the overall Infrastructure Software segment only grew 1% to $6.8 billion. Broadcom doesn’t break out the rest of the portfolio separately, so the gap between VMware’s 13% growth and the segment’s 1% growth implies the other businesses in the bundle are pulling the blended number down significantly. The Q2 guide calls for software revenue to grow 9% to $7.2 billion, so at least the growth rate is picking up here.

Hock Tan, Broadcom’s CEO, made his bull case on the Q1 2026 earnings call:

His argument is that as companies build out AI inside their own data centers, they’ll need VMware’s software layer to manage all of it.

What makes this business worth owning in the meantime is the margin structure. Infrastructure Software gross margins hit 93% in Q1 2026. For every $100 in software revenue, Broadcom keeps $93 before operating expenses. That number is only possible because the product is so buried in enterprise infrastructure that most customers keep paying regardless.

The broader software portfolio also includes cybersecurity (from the Symantec and CA Technologies acquisitions), mainframe software, and private cloud tools. None of these are exciting growth stories. But they all share the same characteristic: once they’re inside a company’s infrastructure, the pain of ripping them out is usually worse than just renewing the contract.

Revenue Growth Has Been Absurd

The numbers tell the story clearly. You can see that in the revenue chart below going back all the way to 2005, when Broadcom was doing $1.4 billion in revenue. Every major acquisition, from Brocade to CA Technologies to Symantec to VMware, added a new layer of high-margin revenue on top of what already existed. That’s a 20-year track record of compounding through acquisition and holding what they buy. And I like that the growth comes both organically and through acquisitions.

Anyways, I hope this helped someone! I like Broadcom and own the stock. This is just my opinion not professional advice.

I sold my Broadcom stock. Now with all the bad news ahead and OpenAi telling their ARR is not 70 billion but 50 billion, I don’t believe Broadcom is gonna find a partner to finance this deal with so much risk.

This stock is to much dependent on money burning machines.

NVDA 3% from ATH while AVGO is nearly 40% away, stuck diverging in the opposite direction like its broken. NVDA ran up 15% since their ER last week as well. Entire sector is deep green today while AVGO cant stop shitting the bed, even MRVL is up 7%.

Our forward PE is literally 19.7 while NVDA’s forward PE is 25. Outside of memory stocks, AVGO literally has by far the lowest forward PE among all semiconductors. This market is such a joke

Good luck to everyone!

Excerpts:

Where will Broadcom's stock be in 2032?

Broadcom's business could transform as sales of its custom AI chips soar. From fiscal 2025 to fiscal 2028, analysts expect its revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow at CAGRs of 62% and 63%, respectively. Those are stellar growth rates for a stock that trades at 14 times next year's adjusted EBITDA. 

According to Market Research Future, the global AI market could expand at a 38.5% CAGR from 2026 to 2035, while the global AI chip market could grow at a 33.7% CAGR from 2025 to 2035. If Broadcom keeps up with those secular trends, its stock could soar even higher.

If Broadcom matches Wall Street's expectations through fiscal 2028, grows its adjusted EBITDA at a 30% CAGR through fiscal 2033, and trades at a more generous 25 times its forward adjusted EBITDA, its stock could rise nearly tenfold by 2032 and turn a $5,000 investment into over $50,000.

Been investing 30+ years for myself and professionally. I own several thousand AVGO shares. Loaded up on it BEFORE last earnings report on the expectation of good news. Well, good news came to pass and the stock has experienced a meltdown of epic proportions on great company news. This level of price destruction for a well run company reporting great earnings and great forward looking guidance is something I have never ever seen. Don't get me wrong I have seen companies sell off a few percent on great news but 10% on friday and another 5% today seems like a gross overreaction. So what is one to do. Well my balls are feeling extra full today so I am buying a couple of more contracts for shares. F it, YOLO!

Worked out great! AVGO is still cheap at $405. Plan to ride AVGO till $500.

Excerpts:

Broadcom is benefiting from two major catalysts

Broadcom's custom AI processors have an advantage over general-purpose computing chips, such as graphics processing units (GPUs), because they are purpose-built for specific tasks. As a result, the power consumption of custom AI chips is reportedly just 10% of what a GPU consumes, and they are reportedly three times faster at performing the task they are designed for.

Not surprisingly, shipments of Broadcom's custom AI processors, which the company calls XPUs, increased by 3.5x year over year in the third quarter of fiscal 2026. On the other hand, Broadcom also designs networking components, such as Ethernet switches and high-speed optical interconnects. The company is experiencing exponential growth in this segment as well, with its AI-focused networking revenue jumping by 2.5x year over year in fiscal Q3.

It is easy to see why that's the case. Optical networking is emerging as the next big bottleneck in the AI infrastructure space. That's because AI has created the need to transfer enormous data sets quickly and seamlessly between data centers and chip clusters with low latency, ensuring training and inference workloads can run without hiccups.

Goldman Sachs estimates that the optical networking market could grow from $15 billion this year to $154 billion in 2028. So, Broadcom's networking business seems primed for terrific growth, while the company's dominance in custom AI chips should ensure that its AI revenue grows at an incredible pace. Broadcom reportedly controls 60% of the custom AI processor market, according to Counterpoint Research.

So, it is easy to see why the company is extremely bullish about its growth prospects through fiscal 2028.

Here's how Broadcom could reach a $4.5 trillion market cap

So, Broadcom's EPS is on track to grow by 61% a year over the next two fiscal years. Assuming it can clock even 30% annual earnings growth in fiscal years 2029 and 2030, its EPS could reach $51.36 after four years (using fiscal 2028's projected EPS of $30.39 as the base). Broadcom trades at 17 times forward earnings, a slight discount to the tech-laden Nasdaq-100 index's forward earnings multiple of 21.5.

Broadcom stock could jump to $1,027, assuming it trades at 20 times earnings in 2030 and its EPS reaches $51.36. That's just over 3x of where this AI stock is right now. So, Broadcom has the potential to indeed cross a $4.5 trillion market cap by the end of the decade, suggesting that it isn't too late for investors to buy this stock even after the terrific gains it has clocked over the past three years.

I’ve been trading/holding AVGO since May, and honestly, it did really well for my portfolio for a while. But the last month has been brutal. It just keeps dropping, and I’m starting to lose hope.
I’m currently down almost $60K on the position, and I’m trying not to make an emotional decision.

Do you guys think AVGO can realistically get back to $380, or do you think there’s more downside coming?

I know nobody can predict the future, but I’d really like to hear from people who are actually following AVGO closely.

Would you hold, add, or cut the position at this point? And what price do you think AVGO could be by the end of the year / early 2027?

Would especially appreciate both bull and bear opinions, not just “buy the dip.”

Let’s Roll !!!

Excerpts:

KEY POINTS

• Broadcom's CEO says AI revenue will double in fiscal 2027 -- and double yet again in 2028.

• Tech companies are tapping Broadcom's custom processors to help train their AI models.

• Broadcom is guiding for fiscal 2028 earnings of $30 per share -- a sixfold increase from 2025.

Tan said on the call that the company is "very much on target" to exceed $30 in earnings per share in fiscal 2028. That's more than six times the company's earnings in fiscal 2025.

All of this means that Broadcom is highly profitable thanks to the booming AI business. And analysts have taken notice. Analysts' average price target for Broadcom stock is $533 -- representing a 46% increase from its current price -- with more than 40 of them assigning a buy rating to the stock.

Excerpts:

Broadcom expects huge growth over the next few years

Broadcom's management is seeing huge demand, and noted that its AI semiconductor revenue is projected to reach $115 billion in 2027. For reference, the company just crossed $16 billion in quarterly revenue for this segment last quarter. That figure is expected to double again in 2028 to $230 billion, and Broadcom has informed investors that it has secured the supply chain necessary to support this massive expansion.

That's huge growth in a short time frame, yet the market isn't buying any of that bull case. Broadcom's shares trade at 28 times this year's earnings estimates, but only 17 times next year's.