Jeremy Grantham Advocates for Quality Stocks, Global Value Investments, and Japanese Markets
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 31 2025
0mins
Should l Buy AVGO?
Source: Barron's
Background: Jeremy Grantham, an influential investor, was born during the Great Depression and has navigated various economic cycles throughout his career.
Upcoming Publication: He will release a book titled The Making of a Permabear on January 13, which reflects on his investment experiences.
Investment Philosophy: Grantham emphasizes the concept of mean reversion as a core principle of his investment strategy.
Personal Insights: The book is noted for its blend of humor and humility, offering readers a glimpse into Grantham's perspective on investing.
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Analyst Views on AVGO
Wall Street analysts forecast AVGO stock price to rise
30 Analyst Rating
29 Buy
1 Hold
0 Sell
Strong Buy
Current: 398.470
Low
370.00
Averages
457.75
High
525.00
Current: 398.470
Low
370.00
Averages
457.75
High
525.00
About AVGO
Broadcom Inc. is a global technology firm that designs, develops, and supplies a range of semiconductors, enterprise software and security solutions. The Company operates through two segments: semiconductor solutions and infrastructure software. Its semiconductor solutions segment includes all of its product lines and intellectual property (IP) licensing. It provides a variety of radio frequency semiconductor devices, wireless connectivity solutions, custom touch controllers, and inductive charging solutions for mobile applications. Its infrastructure software segment includes its private and hybrid cloud, application development and delivery, software-defined edge, application networking and security, mainframe, distributed and cybersecurity solutions, and its FC SAN business. It provides a portfolio of software solutions that enable customers to plan, develop, automate, manage and secure applications across mainframe, distributed, mobile and cloud platforms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Oil Price Impact: The index previously fell 12% due to soaring oil prices affecting consumer spending and corporate earnings, but the reopening of the Strait of Hormuz by Iran led to a drop in oil prices and further market gains.
- Uncertain AI Investment: OpenAI's revised spending plan to $600 billion by 2030 from $1.4 trillion may lead to reduced infrastructure spending by cloud providers like Oracle and Microsoft, impacting revenue across the tech sector.
- Strong Historical Performance: Despite risks in the AI sector, the Nasdaq-100 has recovered from five bear markets over the past 26 years, indicating long-term growth potential with a compound annual return of 10.1%.
See More
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- Market Volatility: The Nasdaq-100 index recently fell by 12% due to soaring oil prices triggered by the U.S.-Iran conflict, highlighting investor concerns about consumer spending and corporate earnings, particularly regarding the sustainability of AI spending.
- AI Spending Downgrade: OpenAI's announcement to reduce its computing capacity spending from $1.4 trillion to $600 billion by 2030 may impact infrastructure investments by cloud providers like Oracle and Microsoft, leading to a ripple effect across the tech industry.
- Data Center Delays: Approximately half of the data centers planned to open in the U.S. this year are expected to be delayed or canceled due to component shortages and rising energy costs, exacerbating market concerns about the AI sector, especially given that tech stocks account for 60% of the Nasdaq-100's value.
- Historical Performance and Future Outlook: Despite short-term risks, the Nasdaq-100 index rebounded 17% over 13 days from March to April 2020, indicating strong long-term growth potential, as it has historically recovered from five bear markets, suggesting that the market may continue to rise after volatility.
See More
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- Outstanding Stock Performance: Broadcom Inc. (AVGO) has seen its stock increase by 133.04% over the past year and 14.63% year-to-date, with a remarkable 28% surge in April alone, marking its third-best monthly performance since going public in 2009.
- AI Partnership: Broadcom has partnered with Google and AI safety research firm Anthropic to provide multiple gigawatts of next-generation Tensor Processing Unit (TPU) capacity expected to come online in 2027, significantly enhancing its compute infrastructure to meet extraordinary global customer demand.
- Launch of Smart Ruleset: The company recently introduced the Arcot Smart Ruleset, an adaptive 3D Secure ruleset engine powered by machine learning, which replaces manual fraud rule-writing with optimized logic that continuously learns from evolving threats and updates compliance requirements, enhancing security for financial institutions.
- Competitive Market Advantage: Broadcom's VP Matt Cooke emphasized that automated fraud detection is a multi-million dollar differentiator for top issuers, as the Arcot Smart Ruleset allows financial institutions to focus on higher-value activities like investigations and fraud strategy, thereby strengthening the company's competitive position in the market.
See More
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- Partnership Expansion: The two companies have deepened their existing relationship to jointly develop AI chips, which is expected to enhance the intelligence of their products and strengthen market competitiveness.
- Innovation-Driven Technology: This collaboration will focus on the development of next-generation AI chips, aiming to drive product performance improvements through technological innovation to meet the growing market demand.
- Broad Market Prospects: With the proliferation of AI technology, the AI chip market is expected to grow rapidly in the coming years, providing significant revenue growth opportunities for both companies and further solidifying their industry positions.
- Positive Stock Response: As of the afternoon of April 14, 2026, stock prices for both companies saw an increase, reflecting market optimism regarding this partnership and potentially attracting more investor interest.
See More
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- Broadcom's Networking Edge: Broadcom leads in data center networking with its Tomahawk Ethernet solution widely adopted in hyperscale data centers, and as chip clusters reach 1 million, the importance of networking components will increase, driving rapid growth in the AI infrastructure market.
- Custom Chip Market Potential: Broadcom projects $100 billion in custom chip sales by fiscal 2027, bolstered by partnerships with Alphabet, OpenAI, and Meta, showcasing its strong capabilities in ASIC technology and further solidifying its market leadership.
- AMD's GPU Innovation: AMD's upcoming MI450 graphics processing unit is expected to significantly enhance inference performance, utilizing a chiplet design that increases memory capacity, reduces costs, and strengthens its competitive position in the AI inference market.
- Strategic Partnerships and Market Opportunities: AMD's collaboration with OpenAI and Meta not only secures a 6GW demand for its new GPUs but also grants equity stakes through warrants, highlighting its critical role in AI infrastructure spending, with substantial growth opportunities in the data center CPU market ahead.
See More
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- Anthropic Revenue Surge: Anthropic's annualized revenue skyrocketed from $9 billion at the end of 2025 to $30 billion by Q1 2026, indicating a remarkable tripling of business in just 90 days, which highlights a significant shift in enterprise demand for AI technologies.
- Google and Anthropic Partnership: Google has signed a new deal with Anthropic to provide TPU computing power, ensuring Anthropic's competitiveness on Google Cloud while bolstering Google's AI strategy, which could potentially impact Nvidia's market dominance.
- Apple's Foldable Phone Prospects: The anticipated launch of Apple's foldable phone has generated buzz, and while market demand remains uncertain, in China, foldable phones are seen as status symbols, which could drive sales and help Apple find new growth avenues in a mature smartphone market.
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