Broadcom Stock Soars on AI Momentum and VMware Deal Despite Moderate Growth
• Broadcom stock has skyrocketed over 130% in the past year despite moderate revenue and earnings growth, likely due to AI momentum and acquiring VMware • Generative AI revenue made up 20% of semiconductor revenue in Q4 2023, expected to grow to 25%+ in 2024 • Acquisition of VMware closed on Nov 22, 2023, expected to boost 2024 revenue 40% to around $50B • For Q1 2024, Wall Street expects revenue around $11.7B (up 31% YoY) and adjusted EPS around $10.29 • Valuation not compelling enough to buy Broadcom stock hand over fist right now compared to other AI stocks