CA - Broadcom: One Of The Best Investments Money Can Buy Today
2024-07-16 04:36:41 ET
Summary
- Broadcom Inc. is one of the main beneficiaries of AI spending, rewarding shareholders with a 52% year-to-date gain.
- Broadcom's booming AI-related chip sales and successful acquisition of VMware position the company well to lower Apple's dependency.
- This BBB-rated company is one of the best bets to play the AI investment theme with 25% of the sales generative by AI chips, with a long growth runway ahead.
- Despite its wide-moat, Broadcom's forward valuation carries significantly less premium compared to its peers NVDA and AMD.
- I rate Broadcom as BUY, being one of the best AI companies money can buy today, with a share price target of $200 by the end of the year.
Broadcom Inc. ( AVGO ) has been one of the main beneficiaries of the AI investment narrative, ever since Chat-GPT's introduction in November 2022, showcasing to the world the power of generative AI solutions.
Broadcom is a true example of a compounder at its finest. The company has a very healthy balance sheet with a triple-B rating from S&P Global and the stock is up 496% in a span of the last 5 years, thanks to its best-of-breed custom chips offering designed for specific needs of major companies like Apple ( AAPL ), Cisco Systems ( CSCO ) and Google ( GOOGL )....
Broadcom: One Of The Best Investments Money Can Buy Today