Tech Stocks Are Stagnant: Now Is an Ideal Time to Invest.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 07 2026
0mins
Should l Buy AVGO?
Source: Barron's
- Current Market Situation: Tech shares have experienced significant declines in recent months, making them more affordable.
- Investment Opportunity: The current lower prices present a favorable opportunity for investors to buy into tech stocks.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AVGO?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 333.990
Low
370.00
Averages
457.75
High
525.00
Current: 333.990
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.
Broadcom's AI Chip Demand Soars, Stock Performance Strong
- Surging Market Demand: Broadcom has seen skyrocketing demand for its data center chips and networking equipment, with its stock soaring 49% last year, significantly outperforming rival Nvidia's 38% gain, highlighting its strong position in the AI market.
- Robust Customer Orders: Major AI companies like Google and Anthropic have placed orders totaling $21 billion for Broadcom's Ironwood chips, indicating the increasing importance of its hardware in AI development and further solidifying its market share.
- Accelerating Revenue Growth: Broadcom anticipates total revenue of approximately $19.1 billion for the first quarter of fiscal 2026, representing a 28% year-over-year increase, with AI semiconductor revenue expected to reach $8.2 billion, showcasing strong growth in AI hardware sales.
- Valuation and Investment Advice: Despite Broadcom's high P/E ratio of 68, which is more than double the Nasdaq-100's 32, investors should note its projected 50% annual revenue growth, suggesting a long-term hold strategy for better returns.
See More
AI Spending Continues to Surge, Favoring Key Stocks
- Strong Market Demand: Despite market hopes for a slowdown in AI spending, this trend is expected to persist for several years, particularly as the construction of large data centers takes time, indicating a bullish outlook for companies involved in AI.
- Nvidia's Leading Position: Nvidia (NVDA) has emerged as the top provider of AI computing units since 2023, with its latest Rubin chip architecture requiring four times fewer GPUs for training AI models, further driving customer upgrade demand, and is projected to grow at 65% in fiscal year 2027.
- TSMC's Growth Potential: Taiwan Semiconductor Manufacturing (TSM), as the world's largest chip foundry, is expected to see nearly 30% revenue growth this year, benefiting from the four major hyperscalers planning to invest around $650 billion in capital expenditures, highlighting its crucial role in AI spending.
- Broadcom's Market Opportunity: Broadcom (AVGO) is experiencing exploding demand for its custom AI chips, with management projecting a doubling of AI chip revenue in the upcoming quarter, positioning itself as a strong alternative to Nvidia in the competitive AI computing landscape.
See More
AI Investment Surge Fuels Chip Stock Growth
- Nvidia's Continued Dominance: Nvidia's launch of the Rubin chip architecture reduces the number of GPUs needed to train AI models by four times, with analysts projecting a 65% growth rate for fiscal year 2027, indicating strong market demand and ongoing technological innovation.
- Taiwan Semiconductor's Significant Gains: As the world's largest chip foundry, Taiwan Semiconductor is expected to see nearly 30% revenue growth this year, benefiting from the $650 billion capital expenditures planned by the four major hyperscalers, positioning it as a neutral beneficiary of AI spending growth.
- Broadcom's Rise: Demand for Broadcom's custom AI chips is surging, with projected revenue from AI chips expected to double in the upcoming quarter, providing a cost-effective alternative to Nvidia and demonstrating its competitive edge in the AI computing landscape.
- Microsoft vs. Alphabet: Microsoft's price-to-earnings ratio has dropped to 24 times, making it an attractive low-cost stock for investors, while Alphabet has rebounded with its Gemini model and rapidly growing cloud platform, showcasing strong prospects in the generative AI space.
See More
Investment Opportunities in the AI Infrastructure Revolution
- Surge in Capital Expenditure: Major tech companies like Microsoft, Amazon, and Google are set to spend nearly $700 billion on capital expenditures in 2023, driving demand for AI infrastructure despite overall market sell-offs.
- Broadcom's Market Positioning: Broadcom is capitalizing on the growth of AI infrastructure by providing custom silicon solutions for Meta and Alphabet, particularly benefiting from the rise in data center build-outs, thereby solidifying its leadership in the networking equipment market.
- Micron's Memory Solutions: Micron specializes in high-bandwidth memory (HBM) chips and is expected to sell out its inventory by 2026; with DRAM and NAND prices projected to rise, Micron will have significant pricing power to meet the memory demands of AI applications.
- Optimistic Investment Outlook: Against the backdrop of the AI infrastructure revolution, Broadcom and Micron are viewed as the new “pick-and-shovel” stocks, and investors may consider increasing their stakes in these two stocks during the current tech sell-off to capitalize on future growth opportunities.
See More
Tech Stocks Decline Amid Rising AI Infrastructure Spending
- Capital Expenditure Pressure: Major tech firms like Microsoft and Amazon announced nearly $700 billion in capital expenditures for 2023, triggering panic selling in AI-related stocks and directly impacting their free cash flow.
- Data Bottleneck Challenges: AI developers are facing dual bottlenecks in data movement and storage; despite surging GPU procurement, the lack of high-bandwidth memory (HBM) and storage solutions limits the efficiency of AI infrastructure.
- Broadcom's Strategic Advantage: Broadcom is positioned to benefit from rising AI capital expenditures by providing custom silicon solutions to Meta and Alphabet for their proprietary AI accelerators, while its networking chips play a crucial role in data center builds.
- Micron's Market Opportunity: The demand for Micron's high-bandwidth memory chips is surging, with DRAM and NAND prices expected to rise by 60% and 38% respectively in Q1, placing it in a favorable position within the AI chip value chain and granting significant pricing power.
See More
Tech Stock Retreat Creates Buying Opportunities
- Taiwan Semiconductor's Market Position: Taiwan Semiconductor (TSM), as a primary chip manufacturer, is expected to grow nearly 30% in 2026, reflecting strong confidence in chip demand; despite its current price nearing all-time highs, it remains an essential part of any investment portfolio.
- Nvidia's Growth Potential: Nvidia (NVDA) continues to see robust demand for its GPUs in AI data centers, with a projected 65% revenue growth for fiscal year 2027; although its stock is down nearly 10% from its all-time high, this presents a rare buying opportunity for investors.
- Broadcom's Market Strategy: Broadcom (AVGO) is designing specialized chips for specific workloads, with analysts forecasting a 51% revenue growth in 2026; despite its stock being down nearly 20% from its peak, its unique market strategy positions it advantageously in the competitive landscape.
- Microsoft and Amazon's Slump: Both Microsoft (MSFT) and Amazon (AMZN) have seen their stocks drop 25% and 20% respectively due to disappointing earnings reports, yet their solid fundamentals suggest that the current undervaluation offers a great buying opportunity for investors.
See More
Broadcom's AI Chip Demand Soars, Stock Performance Strong
- Surging Market Demand: Broadcom has seen skyrocketing demand for its data center chips and networking equipment, with its stock soaring 49% last year, significantly outperforming rival Nvidia's 38% gain, highlighting its strong position in the AI market.
- Robust Customer Orders: Major AI companies like Google and Anthropic have placed orders totaling $21 billion for Broadcom's Ironwood chips, indicating the increasing importance of its hardware in AI development and further solidifying its market share.
- Accelerating Revenue Growth: Broadcom anticipates total revenue of approximately $19.1 billion for the first quarter of fiscal 2026, representing a 28% year-over-year increase, with AI semiconductor revenue expected to reach $8.2 billion, showcasing strong growth in AI hardware sales.
- Valuation and Investment Advice: Despite Broadcom's high P/E ratio of 68, which is more than double the Nasdaq-100's 32, investors should note its projected 50% annual revenue growth, suggesting a long-term hold strategy for better returns.
See More
AI Spending Continues to Surge, Favoring Key Stocks
- Strong Market Demand: Despite market hopes for a slowdown in AI spending, this trend is expected to persist for several years, particularly as the construction of large data centers takes time, indicating a bullish outlook for companies involved in AI.
- Nvidia's Leading Position: Nvidia (NVDA) has emerged as the top provider of AI computing units since 2023, with its latest Rubin chip architecture requiring four times fewer GPUs for training AI models, further driving customer upgrade demand, and is projected to grow at 65% in fiscal year 2027.
- TSMC's Growth Potential: Taiwan Semiconductor Manufacturing (TSM), as the world's largest chip foundry, is expected to see nearly 30% revenue growth this year, benefiting from the four major hyperscalers planning to invest around $650 billion in capital expenditures, highlighting its crucial role in AI spending.
- Broadcom's Market Opportunity: Broadcom (AVGO) is experiencing exploding demand for its custom AI chips, with management projecting a doubling of AI chip revenue in the upcoming quarter, positioning itself as a strong alternative to Nvidia in the competitive AI computing landscape.
See More
AI Investment Surge Fuels Chip Stock Growth
- Nvidia's Continued Dominance: Nvidia's launch of the Rubin chip architecture reduces the number of GPUs needed to train AI models by four times, with analysts projecting a 65% growth rate for fiscal year 2027, indicating strong market demand and ongoing technological innovation.
- Taiwan Semiconductor's Significant Gains: As the world's largest chip foundry, Taiwan Semiconductor is expected to see nearly 30% revenue growth this year, benefiting from the $650 billion capital expenditures planned by the four major hyperscalers, positioning it as a neutral beneficiary of AI spending growth.
- Broadcom's Rise: Demand for Broadcom's custom AI chips is surging, with projected revenue from AI chips expected to double in the upcoming quarter, providing a cost-effective alternative to Nvidia and demonstrating its competitive edge in the AI computing landscape.
- Microsoft vs. Alphabet: Microsoft's price-to-earnings ratio has dropped to 24 times, making it an attractive low-cost stock for investors, while Alphabet has rebounded with its Gemini model and rapidly growing cloud platform, showcasing strong prospects in the generative AI space.
See More
Investment Opportunities in the AI Infrastructure Revolution
- Surge in Capital Expenditure: Major tech companies like Microsoft, Amazon, and Google are set to spend nearly $700 billion on capital expenditures in 2023, driving demand for AI infrastructure despite overall market sell-offs.
- Broadcom's Market Positioning: Broadcom is capitalizing on the growth of AI infrastructure by providing custom silicon solutions for Meta and Alphabet, particularly benefiting from the rise in data center build-outs, thereby solidifying its leadership in the networking equipment market.
- Micron's Memory Solutions: Micron specializes in high-bandwidth memory (HBM) chips and is expected to sell out its inventory by 2026; with DRAM and NAND prices projected to rise, Micron will have significant pricing power to meet the memory demands of AI applications.
- Optimistic Investment Outlook: Against the backdrop of the AI infrastructure revolution, Broadcom and Micron are viewed as the new “pick-and-shovel” stocks, and investors may consider increasing their stakes in these two stocks during the current tech sell-off to capitalize on future growth opportunities.
See More
Tech Stocks Decline Amid Rising AI Infrastructure Spending
- Capital Expenditure Pressure: Major tech firms like Microsoft and Amazon announced nearly $700 billion in capital expenditures for 2023, triggering panic selling in AI-related stocks and directly impacting their free cash flow.
- Data Bottleneck Challenges: AI developers are facing dual bottlenecks in data movement and storage; despite surging GPU procurement, the lack of high-bandwidth memory (HBM) and storage solutions limits the efficiency of AI infrastructure.
- Broadcom's Strategic Advantage: Broadcom is positioned to benefit from rising AI capital expenditures by providing custom silicon solutions to Meta and Alphabet for their proprietary AI accelerators, while its networking chips play a crucial role in data center builds.
- Micron's Market Opportunity: The demand for Micron's high-bandwidth memory chips is surging, with DRAM and NAND prices expected to rise by 60% and 38% respectively in Q1, placing it in a favorable position within the AI chip value chain and granting significant pricing power.
See More
Tech Stock Retreat Creates Buying Opportunities
- Taiwan Semiconductor's Market Position: Taiwan Semiconductor (TSM), as a primary chip manufacturer, is expected to grow nearly 30% in 2026, reflecting strong confidence in chip demand; despite its current price nearing all-time highs, it remains an essential part of any investment portfolio.
- Nvidia's Growth Potential: Nvidia (NVDA) continues to see robust demand for its GPUs in AI data centers, with a projected 65% revenue growth for fiscal year 2027; although its stock is down nearly 10% from its all-time high, this presents a rare buying opportunity for investors.
- Broadcom's Market Strategy: Broadcom (AVGO) is designing specialized chips for specific workloads, with analysts forecasting a 51% revenue growth in 2026; despite its stock being down nearly 20% from its peak, its unique market strategy positions it advantageously in the competitive landscape.
- Microsoft and Amazon's Slump: Both Microsoft (MSFT) and Amazon (AMZN) have seen their stocks drop 25% and 20% respectively due to disappointing earnings reports, yet their solid fundamentals suggest that the current undervaluation offers a great buying opportunity for investors.
See More
