AVGO Stock Analysis for Top Dunia
Introduction
We turn our attention to Broadcom Inc. (AVGO), situated in the Semiconductors industry within the Technology sector. On 2025-05-30 00:00:00, AVGO’s shares were valued at $242.07, reflecting a bullish technical indication, positioned over its main moving averages. Trading above both the 50-day and 200-day SMAs is typically viewed as a bullish signal, indicating positive short-to-medium term momentum. Boasting a market cap around $1.16 T, AVGO represents a significant player in its field.
This report offers a multi-faceted analysis of Broadcom Inc. (AVGO), integrating technical signals, fundamental data, and forward-looking forecasts. The aim is to provide investors with a balanced perspective on the stock’s current market standing, potential risks (see Risk Factors), and future performance outlook.
Business Overview
Its business model centers around: Broadcom Inc. designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software. It provides Ethernet switching and routing custom silicon solutions, optical and copper…
Metrics Summary
Here’s a quick overview of AVGO’s key metrics. The stock trades at $242.07, with models forecasting a 1-year average target near $326.34 (+34.8%). Technical indicators currently reflect a Neutral-Bullish sentiment (Above SMA 50 / Above SMA 200). Price swing intensity is measured by volatility at 27.7%. The following sections provide deeper analysis into the underlying technicals and fundamentals.
Detailed Forecast Table
The detailed month forecast below outlines the model’s expectations for AVGO’s price evolution ($221.58 to $374.59). It includes projected ranges (Min, Avg, Max), potential ROI based on the average projection versus the current price, and a derived model signal for each period.
Over the forecast horizon (2025-05 to 2026-05), AVGO’s price is projected by the model to fluctuate between approximately $221.58 and $374.59.
Forecast uncertainty appears steady, with the price range ($221.58 – $221.58 to $304.65 – $357.78) showing little change over the horizon.
| Month (Period) | Min. Price | Avg. Price | Max. Price | Potential ROI vs Current ($242.07) | Model Signal |
|---|---|---|---|---|---|
| 2025-05 | $221.58 | $221.58 | $221.58 | ▼ -8.5% | Consider Short |
| 2025-06 | $251.26 | $275.02 | $292.32 | ▲ 13.6% | Consider Buy |
| 2025-07 | $283.50 | $293.53 | $303.68 | ▲ 21.3% | Consider Buy |
| 2025-08 | $284.98 | $291.03 | $299.21 | ▲ 20.2% | Consider Buy |
| 2025-09 | $282.63 | $290.53 | $300.91 | ▲ 20.0% | Consider Buy |
| 2025-10 | $287.08 | $297.10 | $309.09 | ▲ 22.7% | Consider Buy |
| 2025-11 | $287.46 | $302.10 | $312.92 | ▲ 24.8% | Consider Buy |
| 2025-12 | $295.96 | $318.55 | $345.53 | ▲ 31.6% | Consider Buy |
| 2026-01 | $331.85 | $353.30 | $372.96 | ▲ 45.9% | Consider Buy |
| 2026-02 | $352.92 | $363.91 | $374.59 | ▲ 50.3% | Consider Buy |
| 2026-03 | $326.77 | $348.86 | $371.62 | ▲ 44.1% | Consider Buy |
| 2026-04 | $306.01 | $324.03 | $342.55 | ▲ 33.9% | Consider Buy |
| 2026-05 | $304.65 | $326.34 | $357.78 | ▲ 34.8% | Consider Buy |
Forecasts are model-based estimates, inherently uncertain, and subject to change based on evolving data and market conditions. They do not guarantee future prices.
Company Profile
Business Overview
A brief overview of the company’s business activities. Broadcom Inc. designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software.
It provides Ethernet switching and routing custom silicon solutions, optical and copper physical layer devices, and fiber optic transmitter and receiver components; set-top box system-on-chips (SoCs), data over cable service interface specifications cable modem and networking infrastructure, DSL access multiplexer/PON optical line termination products, and Wi-Fi access point SoCs, as well as digital subscriber line (DSL)/cable, passive optical networking (PON) gateways; and fiber optic components and mobile device connectivity solutions.
The company also offers RF front end modules and filters; Wi-Fi, Bluetooth, and global positioning system/global navigation satellite system SoCs; custom touch controllers; inductive charging application specific integrated circuits; serial attached small computer system interface and redundant array of independent disks controllers and adapters, peripheral component interconnect express switches, fiber channel host bus adapters, read channel based SoCs, custom flash controllers, and preamplifiers; and optocouplers, industrial fiber optics, industrial and medical sensors, motion control encoders and subsystems, light emitting diodes, ethernet PHYs, switch ICs, and camera microcontrollers.
Its products are used in various applications in enterprise and data center networking, including artificial intelligence networking and connectivity, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Broadcom Inc. was founded in 1961 and is headquartered in Palo Alto, California.
Valuation Metrics
To gauge if AVGO’s stock is fairly priced, investors often turn to valuation metrics. These ratios compare the company’s stock price to its financial performance (like earnings or sales) or its intrinsic value (like book value). This section explores these critical indicators. Remember, a thorough analysis involves looking at these ratios in the context of AVGO’s own past performance 📜, how it stacks up against competitors 👥, and the overall market sentiment. One metric alone is rarely definitive, but collectively they offer valuable clues.
Forward P/E Ratio: 40.02x
The Forward Price-to-Earnings (P/E) ratio of 40.02x indicates how much investors are willing to pay for each dollar of AVGO’s anticipated earnings over the next fiscal period. A lower Forward P/E can sometimes suggest that the stock is undervalued relative to its future earnings potential, or it might reflect market expectations of slower growth. Conversely, a higher Forward P/E often implies that investors have high growth expectations, or that the stock is perceived as a premium quality name. It’s a forward-looking measure, so the accuracy of the underlying earnings estimates is crucial.
Other Key Valuation Ratios:
- Trailing P/E: 90.12x – Reflects the company’s stock price relative to its earnings per share over the past 12 months (TTM). It’s a historical measure often used as a starting point for valuation.
- Price/Sales (TTM): 20.35x – Compares the company’s stock price to its total sales per share over the past 12 months. This can be particularly useful for valuing companies that are not yet profitable or are in cyclical industries where earnings can be volatile.
- Price/Book (MRQ): 4.17x – Measures the market’s valuation of a company compared to its book value (assets minus liabilities) on its most recent quarterly balance sheet. A lower P/B ratio could mean the stock is undervalued. It’s often used for valuing financial institutions or capital-intensive businesses.
Total Valuation
Total valuation metrics offer a broader perspective beyond market capitalization. At N/A, the Enterprise Value (EV) presents a fuller picture of AVGO’s aggregate value, accounting for both equity and net debt. Relating this EV to performance, the EV/Revenue multiple stands at 2.29x, and the EV/EBITDA multiple is 4.23x, gauging value against sales and core operational earnings respectively. These ratios help assess the company’s valuation relative to its sales and operating earnings. Key upcoming dates include the next earnings announcement (Est: 2025-06-05) and the ex-dividend date (2025-06-20).
| Market Cap | $1.16 T |
| Enterprise Value | $1.19 T |
| EV/Revenue (TTM) | 2.29x |
| EV/EBITDA (TTM) | 4.23x |
| Next Earnings Date | 2025-06-05 |
| Ex-Dividend Date | 2025-06-20 |
Profitability Growth
Here we look at AVGO’s profit generation and growth trajectory. Core profitability measures are Gross Margin (77.02%), Operating Margin (31.77%), and Net Margin (22.64%). Growth trends are indicated by YoY Revenue (16.40%) and Earnings (188.10%) increases. Benchmarking these profit and growth figures against the past 📜 and peers 👥 is vital for interpretation. These metrics reflect financial success and expansion capacity.
| Profit Margin (TTM) | 22.64% |
| Operating Margin (TTM) | 31.77% |
| Gross Margin (TTM) | 77.02% |
| EBITDA Margin (TTM) | 54.22% |
| Revenue (TTM) | $57.05 B |
| Revenue Growth (YoY) | 16.40% |
| Gross Profit (TTM) | $43.94 B |
| EBITDA (TTM) | $30.93 B |
| Net Income (TTM) | $13.24 B |
| Earnings Growth (YoY) | 188.10% |
Analyst Insights
This section summarizes the collective view of professional analysts covering AVGO. The consensus recommendation is ‘Strong Buy’. 39 analyst(s) contributed to this consensus view. The mean price target is $277.22, with individual targets ranging from $201.33 – $340.00. Based on the mean target ($277.22), this implies a potential upside of ~14.5% from the current price ($242.07). This provides a gauge of Wall Street sentiment regarding the stock’s potential.
Financial Health
This section gauges AVGO’s financial stability and operational effectiveness. Financial stability is gauged by ROE (18.98%), leverage (166.03x), liquidity (Current: 1.08x, Quick: 0.73x), and cash generation (Op Cash Flow: $23.24 B). The data reflects leverage, liquidity, and returns on equity. Strong cash flow is typically viewed favorably.
| Return on Equity (ROE TTM) | 18.98% |
| Return on Assets (ROA TTM) | 7.95% |
| Debt/Equity (MRQ) | 166.03x |
| Total Cash (MRQ) | $11.11 B |
| Total Debt (MRQ) | $40.46 B |
| Current Ratio (MRQ) | 1.08x |
| Quick Ratio (MRQ) | 0.73x |
| Operating Cash Flow (TTM) | $23.24 B |
| Levered Free Cash Flow (TTM) | $26.03 B |
Technical Analysis Summary
The following technical analysis summary for AVGO, based on data up to 2025-05-30 00:00:00, outlines key indicators related to trend, momentum, and volatility. Detailed charts typically provide visual confirmation of these signals.
- Trend: Bullish Trend Confirmation, as price ($242.07) holds above both the key 50-day and 200-day SMAs, indicating positive momentum across timeframes.
- Momentum (RSI): ⚠️ 82.1 (Overbought), suggesting the rally might be overextended.
Moving Average Details
Technical analysis uses past price and volume data to identify potential future trends but offers no guarantees. Combine with fundamental analysis and risk management.
Short Selling Info
Short selling data provides a measure of negative sentiment or bets against AVGO. Short selling activity is measured by Short % of Float (1.33%) and Days to Cover (2.60x). The current level is considered low. This implies low bearish sentiment and suggests limited short squeeze potential. The low Days to Cover (2.60x) indicates shorts could cover relatively quickly, potentially limiting squeeze duration.
| Shares Short | $55 M |
| Short Ratio (Days To Cover) | 2.60x |
| Short % of Float | 1.33% |
| Shares Short (Prior Month) | $53 M |
| Short Date | 2025-05-15 |
Stock Price Statistics
This section summarizes AVGO’s stock price characteristics, including its sensitivity to market movements, historical trading range, recent price fluctuation intensity, and typical trading volume. Price characteristics are summarized by Beta (1.12x), the annual range ($128.50 to $265.43), recent volatility (27.7%), and typical volume (N/A). Beta (1.12x) implies the stock’s volatility generally tracks the broader market. Recent volatility (27.7%) is moderate, suggesting average price fluctuations.
| 52 Week High | $265.43 |
| 52 Week Low | $128.50 |
| 50 Day MA | $202.50 |
| 200 Day MA | $194.31 |
| Beta | 1.12x |
| Volatility (30d Ann.) | 27.7% 📉 |
Conclusion Outlook
Short-Term Technical Snapshot
- ▲Overall Technical Sentiment: Neutral-Bullish
- ▲Price Trend vs MAs: bullish (above SMA50/200)
- ⚠️Momentum (RSI): Overbought (82.1)
- 📊Support / Resistance (30d): ~$195.94 / ~$246.07
Longer-Term Fundamental & Forecast Outlook
- ▲1-Year Avg. Forecast: ~+34.8% avg. change to ≈$326.34
- ●Fundamental Health: Assessment Incomplete (ROE: 18.98%, D/E: 166.03x)
- ⚠️Valuation Snapshot: Appears Elevated (Fwd P/E: 40.02x)
- 📈Recent Growth (YoY): Positive (Rev: 16.40%, Earn: 188.10%)
- ▲Analyst Consensus: Strong Buy (Target: $277.22)
Overall Assessment & Outlook
Overall, AVGO combines a technical picture leaning Neutral-Bullish with a fundamental health assessment of moderate. From a valuation standpoint, it looks Appears Elevated (Fwd P/E: 40.02x). Models project a 1-year path indicating potential upside (+34.8%), targeting ≈$326.34. Investors should weigh these factors against the potential risks outlined earlier and their strategic goals.
Reminder: The following assessment is based on model data and public information, intended for informational use. It is not investment advice. Market conditions change rapidly. Always conduct thorough independent research and consult a qualified financial advisor before making investment decisions.
Risk Factors
Potential investors in AVGO should be aware of several risk factors. The following list highlights key considerations based on data and market dynamics, but may not include all possible risks.
- ⚠️ Overall market fluctuations can impact the stock.
- ⚠️ Factors specific to the Semiconductors industry or Technology sector can affect performance.
- ⚠️ Changes in macroeconomic conditions (interest rates, inflation) pose risks.
- ⚠️ Unforeseen company events or news can impact the price.