Broadcom $AVGO underperformance this year is a buying opportunity.
In Q3 2026, revenue was $29.59 billion, up 85.5% YoY, while EPS was $2.68, up 216.14% YoY.
Revenue is projected to grow 65% in 2026 and 64% in 2027, while EPS is expected to grow 70% and 66% in the same period.
Broadcom has established a dominant moat in custom AI Application-Specific Integrated Circuits (ASICs/XPUs) and has accelerated shipments of custom silicon across key hyperscalers, including Google's TPU v8i and custom accelerators for Anthropic (Ironwood chips).
Now the stock trades at a 2026 forward P/E of 32.2x and a 2027 forward P/E of 19.4x.
The stock underperformed this year likely due to its high valuation, but now it looks reasonable if not undervalued.
In Q3 2026, revenue was $29.59 billion, up 85.5% YoY, while EPS was $2.68, up 216.14% YoY.
Revenue is projected to grow 65% in 2026 and 64% in 2027, while EPS is expected to grow 70% and 66% in the same period.
Broadcom has established a dominant moat in custom AI Application-Specific Integrated Circuits (ASICs/XPUs) and has accelerated shipments of custom silicon across key hyperscalers, including Google's TPU v8i and custom accelerators for Anthropic (Ironwood chips).
Now the stock trades at a 2026 forward P/E of 32.2x and a 2027 forward P/E of 19.4x.
The stock underperformed this year likely due to its high valuation, but now it looks reasonable if not undervalued.