Posted 3/5/2024, 10:50:00 AM
Broadcom Soars 130% in a Year on AI Promise and VMware Deal Despite Lofty Valuation
- Broadcom stock has skyrocketed over 130% in the past year despite moderate revenue and earnings growth
- Two main drivers are generative AI, which makes up over 20% of semiconductor revenue, and the VMware acquisition
- Broadcom expects 40% revenue growth in 2024 to $50B following the VMware deal
- For Q1, analysts expect revenue of $11.7B and EPS of $10.29, up 31% and down slightly year-over-year
- Despite momentum, Broadcom's valuation looks high at over 30x forward earnings, so other AI stocks may offer better risk-reward