2024-06-12 01:34:32 ET
Summary
- Broadcom is an excellent opportunity to ride the AI future outside of GPUs.
- It is unique in its aggregation of firms - it has a high-value semiconductor business and a sticky SaaS business.
- There is a tremendous amount of operating efficiency in their business.
- Recurring, sustainable higher quality software revenues from the VMware acquisition.
Broadcom ( AVGO ) was often overlooked as a commodity/cyclical player in the semiconductor industry for a long time under Nvidia's ( NVDA ) and Advanced Micro Devices' ( AMD ) shadows.
It was a huge opportunity when the stock was available in the 700's last year at just 18-20 x earnings. Now at $1,400 the stock sells for 30x FY2024 adjusted earnings of $47 and 12 x sales of $50Bn. Is it still worth it, or have we missed the bus?...
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Broadcom Still Has Room To Appreciate