Broadcom Stock Is Back Where It Ended 2025, but Its Earnings Are About 43% Higher. Is It a Buy?
Broadcom stock is currently trading at levels seen in 2025 despite significant growth in earnings and AI chip sales forecasts. The article argues that the stock is undervalued given the company's aggressive growth projections for 2026 and beyond.
Why it matters
Investors are evaluating whether Broadcom's rapid AI-driven growth justifies a higher valuation despite market concerns over customer concentration.
Broadcom ( AVGO +0.70% ) stock sits near $350 as of this writing, about 29% under its 52-week high of $495. Much of that drop came the day after the chip designer's June 3 earnings report. Shares fell about 13% that session as investors reacted to CEO Hock Tan's decision not to lift the company's artificial intelligence (AI) chip forecast.
But the forecast has moved since then, and it moved up.
The company's profits have risen, too. Broadcom's non-GAAP (adjusted) earnings per share over the last four quarters are about 43% higher than in fiscal 2025. But the stock is back to about where it ended 2025.
Put another way, investors are paying the same price for a far more profitable company.
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