Nasdaq Growth Stocks Present Buying Opportunities Post-Sell-Off
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy AVGO?
Source: Fool
- Market Rebound Opportunity: Following last month's sell-off, Nasdaq growth stocks have nearly universally rebounded from their lows at the end of March, indicating strong market momentum and providing investors with opportunities to participate in future growth.
- Microsoft Valuation Potential: Microsoft (MSFT) is currently over 20% below its all-time high, having dropped as much as 34% at its lowest point, and its operating profit valuation suggests significant room for upside, attracting investor interest.
- AI-Driven Growth: Nvidia (NVDA) and Broadcom (AVGO) are thriving due to AI chip manufacturing, with Nvidia expected to achieve $1 trillion in cumulative orders by 2027, showcasing immense growth potential in the coming years.
- Long-Term Investment Outlook: Despite a recent 20% to 30% price increase, Broadcom and Nvidia's long-term growth potential remains substantial, with expectations of doubling stock prices over the next two years, and when combined with Microsoft's undervaluation, these three stocks are poised to significantly outperform market indices.
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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: 419.940
Low
370.00
Averages
457.75
High
525.00
Current: 419.940
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.
Nasdaq Growth Stocks Present Buying Opportunities Post-Sell-Off
- Market Rebound Opportunity: Following last month's sell-off, Nasdaq growth stocks have nearly universally rebounded from their lows at the end of March, indicating strong market momentum and providing investors with opportunities to participate in future growth.
- Microsoft Valuation Potential: Microsoft (MSFT) is currently over 20% below its all-time high, having dropped as much as 34% at its lowest point, and its operating profit valuation suggests significant room for upside, attracting investor interest.
- AI-Driven Growth: Nvidia (NVDA) and Broadcom (AVGO) are thriving due to AI chip manufacturing, with Nvidia expected to achieve $1 trillion in cumulative orders by 2027, showcasing immense growth potential in the coming years.
- Long-Term Investment Outlook: Despite a recent 20% to 30% price increase, Broadcom and Nvidia's long-term growth potential remains substantial, with expectations of doubling stock prices over the next two years, and when combined with Microsoft's undervaluation, these three stocks are poised to significantly outperform market indices.
See More
Amazon Stock Breaks Out as AI Chip Deal with Meta Boosts Confidence
- Stock Surge: Amazon's shares rose nearly 3% to over $263, on track for a second record-high close this week, reflecting increased investor confidence in the company's growth prospects.
- Key Partnership: Meta Platforms has agreed to utilize Amazon's Graviton chips for at least three years, making Meta a top-five customer of Graviton, which solidifies Amazon's position in the AI infrastructure market.
- Market Competitiveness: Amazon's strategic positioning in the AI chip sector allows it to compete with rivals like Nvidia, particularly in terms of cost efficiency and scalability, attracting more companies seeking alternatives.
- Revenue Growth: Amazon's chip business now boasts an annual revenue run rate exceeding $20 billion, growing at triple-digit percentages, showcasing its strong performance in cloud computing and AI, which further boosts investor confidence.
See More
U.S. Stocks Mixed at Midday, Semiconductor Stocks Surge
- Semiconductor Surge: Intel's stock soared 21.3% after exceeding Q1 2026 analyst estimates, reaching an all-time high, which, despite its small weight in the S&P 500 and Nasdaq-100, inspired significant gains across the semiconductor sector.
- Sector Impact: Intel's robust earnings report led to a 14% rise in AMD, an 11% increase in Broadcom, and a 5% jump in Nvidia, illustrating the spillover effect of Intel's performance on the market, even though major indexes did not benefit directly.
- Market Sentiment Divergence: The Dow Jones Industrial Average fell 0.3%, while the S&P 500 and Nasdaq-100 rose by 0.6% and 1.8%, respectively, reflecting a selective preference in the market, particularly favoring tech stocks.
- Geopolitical Factors: Reports of Iran's foreign minister heading to Pakistan caused oil prices to drop by 2.4%, which the Dow is more sensitive to, further exacerbating market divergence and showcasing investor confidence in ongoing demand for AI-related computing infrastructure.
See More
Intel Surpasses Q1 Estimates, Stock Hits All-Time High
- Earnings Beat: Intel's Q1 2026 results significantly exceeded analyst expectations, driven by robust AI data center orders, leading to a 21.3% stock price increase that marks a new all-time high since the dot-com era, showcasing strong market confidence in its future growth.
- Sector Impact: Intel's impressive performance not only boosted its own stock but also led to gains for competitors AMD, Broadcom, and Nvidia, which rose 14%, 11%, and 5% respectively, reflecting investor optimism about overall semiconductor demand, despite no new announcements from these companies.
- Mixed Market Performance: While Intel's stock surged, the Dow Jones Industrial Average fell by 0.3%, indicating the index's low weighting in tech stocks and highlighting the market's selective focus on tech performance, especially amid ongoing demand for AI-related computing infrastructure.
- Investor Sentiment: Intel's results suggest robust AI-driven demand, but the stock's 21% single-day increase also illustrates how quickly market sentiment can shift, reminding investors to be cautious with diversification strategies to mitigate risks during sector rotations.
See More
Google to Invest Up to $40 Billion in Anthropic
- Investment Expansion: Google confirmed plans to invest up to $40 billion in Anthropic, with an initial $10 billion now and the remaining $30 billion contingent on specific performance milestones, reflecting Google's strong confidence and long-term commitment to the AI sector.
- Deepening Partnership: This agreement builds on a longstanding collaboration, as Google previously invested $300 million for a 10% stake in 2023, followed by an additional $2 billion, indicating a strategic positioning in AI technology.
- Computing Capacity Boost: Anthropic's partnership with Google and Broadcom will provide 5 gigawatts of computing capacity, set to come online next year, addressing the surging demand from enterprises and consumers for Claude models, thereby solidifying its market position.
- Intensifying Industry Competition: Google's Gemini competes with Anthropic in the AI models and services market, and as tech giants ramp up investments in AI labs, this is expected to drive industry innovation and technological advancement, leading to substantial revenue returns.
See More
Google Plans $40 Billion Investment in Anthropic
- Investment Expansion: Google has confirmed plans to invest up to $40 billion in AI company Anthropic, with an initial $10 billion based on Anthropic's latest valuation of $380 billion, while the remaining $30 billion is contingent on specific performance milestones, thereby solidifying Google's leadership in the AI sector.
- Computing Capacity Boost: The collaboration between Anthropic, Google, and Broadcom will provide 5 gigawatts of computing capacity expected to come online next year, which not only addresses the surging demand from enterprises and consumers but also enhances the competitiveness of its Claude models in the market.
- Historical Investment Relationship: Since Google's initial $300 million investment in 2023, its total investment in Anthropic has exceeded $3 billion, with a 14% stake, indicating Google's ongoing commitment and strategic positioning in the AI landscape.
- Intensifying Market Competition: As tech giants like Google and Amazon ramp up investments in AI labs, Anthropic's annualized revenue has surpassed $30 billion, highlighting the fierce competition it faces in the rapidly evolving AI market, particularly against rivals like OpenAI.
See More
Nasdaq Growth Stocks Present Buying Opportunities Post-Sell-Off
- Market Rebound Opportunity: Following last month's sell-off, Nasdaq growth stocks have nearly universally rebounded from their lows at the end of March, indicating strong market momentum and providing investors with opportunities to participate in future growth.
- Microsoft Valuation Potential: Microsoft (MSFT) is currently over 20% below its all-time high, having dropped as much as 34% at its lowest point, and its operating profit valuation suggests significant room for upside, attracting investor interest.
- AI-Driven Growth: Nvidia (NVDA) and Broadcom (AVGO) are thriving due to AI chip manufacturing, with Nvidia expected to achieve $1 trillion in cumulative orders by 2027, showcasing immense growth potential in the coming years.
- Long-Term Investment Outlook: Despite a recent 20% to 30% price increase, Broadcom and Nvidia's long-term growth potential remains substantial, with expectations of doubling stock prices over the next two years, and when combined with Microsoft's undervaluation, these three stocks are poised to significantly outperform market indices.
See More
Amazon Stock Breaks Out as AI Chip Deal with Meta Boosts Confidence
- Stock Surge: Amazon's shares rose nearly 3% to over $263, on track for a second record-high close this week, reflecting increased investor confidence in the company's growth prospects.
- Key Partnership: Meta Platforms has agreed to utilize Amazon's Graviton chips for at least three years, making Meta a top-five customer of Graviton, which solidifies Amazon's position in the AI infrastructure market.
- Market Competitiveness: Amazon's strategic positioning in the AI chip sector allows it to compete with rivals like Nvidia, particularly in terms of cost efficiency and scalability, attracting more companies seeking alternatives.
- Revenue Growth: Amazon's chip business now boasts an annual revenue run rate exceeding $20 billion, growing at triple-digit percentages, showcasing its strong performance in cloud computing and AI, which further boosts investor confidence.
See More
U.S. Stocks Mixed at Midday, Semiconductor Stocks Surge
- Semiconductor Surge: Intel's stock soared 21.3% after exceeding Q1 2026 analyst estimates, reaching an all-time high, which, despite its small weight in the S&P 500 and Nasdaq-100, inspired significant gains across the semiconductor sector.
- Sector Impact: Intel's robust earnings report led to a 14% rise in AMD, an 11% increase in Broadcom, and a 5% jump in Nvidia, illustrating the spillover effect of Intel's performance on the market, even though major indexes did not benefit directly.
- Market Sentiment Divergence: The Dow Jones Industrial Average fell 0.3%, while the S&P 500 and Nasdaq-100 rose by 0.6% and 1.8%, respectively, reflecting a selective preference in the market, particularly favoring tech stocks.
- Geopolitical Factors: Reports of Iran's foreign minister heading to Pakistan caused oil prices to drop by 2.4%, which the Dow is more sensitive to, further exacerbating market divergence and showcasing investor confidence in ongoing demand for AI-related computing infrastructure.
See More
Intel Surpasses Q1 Estimates, Stock Hits All-Time High
- Earnings Beat: Intel's Q1 2026 results significantly exceeded analyst expectations, driven by robust AI data center orders, leading to a 21.3% stock price increase that marks a new all-time high since the dot-com era, showcasing strong market confidence in its future growth.
- Sector Impact: Intel's impressive performance not only boosted its own stock but also led to gains for competitors AMD, Broadcom, and Nvidia, which rose 14%, 11%, and 5% respectively, reflecting investor optimism about overall semiconductor demand, despite no new announcements from these companies.
- Mixed Market Performance: While Intel's stock surged, the Dow Jones Industrial Average fell by 0.3%, indicating the index's low weighting in tech stocks and highlighting the market's selective focus on tech performance, especially amid ongoing demand for AI-related computing infrastructure.
- Investor Sentiment: Intel's results suggest robust AI-driven demand, but the stock's 21% single-day increase also illustrates how quickly market sentiment can shift, reminding investors to be cautious with diversification strategies to mitigate risks during sector rotations.
See More
Google to Invest Up to $40 Billion in Anthropic
- Investment Expansion: Google confirmed plans to invest up to $40 billion in Anthropic, with an initial $10 billion now and the remaining $30 billion contingent on specific performance milestones, reflecting Google's strong confidence and long-term commitment to the AI sector.
- Deepening Partnership: This agreement builds on a longstanding collaboration, as Google previously invested $300 million for a 10% stake in 2023, followed by an additional $2 billion, indicating a strategic positioning in AI technology.
- Computing Capacity Boost: Anthropic's partnership with Google and Broadcom will provide 5 gigawatts of computing capacity, set to come online next year, addressing the surging demand from enterprises and consumers for Claude models, thereby solidifying its market position.
- Intensifying Industry Competition: Google's Gemini competes with Anthropic in the AI models and services market, and as tech giants ramp up investments in AI labs, this is expected to drive industry innovation and technological advancement, leading to substantial revenue returns.
See More
Google Plans $40 Billion Investment in Anthropic
- Investment Expansion: Google has confirmed plans to invest up to $40 billion in AI company Anthropic, with an initial $10 billion based on Anthropic's latest valuation of $380 billion, while the remaining $30 billion is contingent on specific performance milestones, thereby solidifying Google's leadership in the AI sector.
- Computing Capacity Boost: The collaboration between Anthropic, Google, and Broadcom will provide 5 gigawatts of computing capacity expected to come online next year, which not only addresses the surging demand from enterprises and consumers but also enhances the competitiveness of its Claude models in the market.
- Historical Investment Relationship: Since Google's initial $300 million investment in 2023, its total investment in Anthropic has exceeded $3 billion, with a 14% stake, indicating Google's ongoing commitment and strategic positioning in the AI landscape.
- Intensifying Market Competition: As tech giants like Google and Amazon ramp up investments in AI labs, Anthropic's annualized revenue has surpassed $30 billion, highlighting the fierce competition it faces in the rapidly evolving AI market, particularly against rivals like OpenAI.
See More
