Stock Price & Analysis

Buy AVGO stock as it shows strong growth potential in AI semiconductors with a 77% year-over-year increase in AI revenue and a 31.6% average price target upside. Hold or buy more on dips due to positive analyst sentiment and long-term AI growth prospects.

Broadcom (AVGO) is expected to reach a stock price of $260 to $300 by 2025, driven by strong AI semiconductor growth and expanding partnerships with tech giants like Apple and Microsoft. Analysts predict a 31.6% upside potential, with a consensus price target of $252.20, reflecting confidence in AVGO's leadership in AI infrastructure.

The S1 support level for AVGO Stock is $165.7 ,The R1 resistant level for AVGO Stock is $194.47.

As of the end of day on 2025-04-01, the price of AVGO Stock was $169.24.

The target price for AVGO Stock according to analyst rating is 252.20, with the highest price target at 300.00 and the lowest at 210.00. Analysts have a Strong Buy rating on AVGO Stock overall.

The market cap of AVGO is $792.4B.

Analysis and Insights

AVGO appears overvalued based on its high valuation metrics.

1. High P/E Ratio: AVGO's P/E ratio of 155.82 is significantly higher than the industry average, indicating elevated valuations relative to earnings.
2. EV/EBITDA of 31.02: This metric is also above industry norms, suggesting the stock is expensive compared to its earnings and debt levels.
3. Price-to-Sales Ratio of 15.52: This is significantly higher than peers, pointing to a premium valuation for each dollar of revenue.
4. Price-to-Book Ratio of 10.23: This is more than double the industry average, signaling the stock is overvalued relative to its book value.
5. Strong AI Growth: Despite high valuations, AVGO's AI revenue growth of 77% year-over-year highlights strong fundamentals, but the stock may already price in this growth.

Broadcom Inc. is a global technology company that designs, develops, and supplies a broad range of semiconductor, enterprise software and security solutions. The Company operates through two segments: semiconductor solutions and infrastructure software. The Company's semiconductor solutions segment includes all of its product lines and intellectual property (IP) licensing. It provides semiconductor solutions for managing the movement of data in data center, service provider and enterprise networking applications. Its infrastructure software segment includes its mainframe, distributed and cyber security solutions, and its fiber channel storage area networking (FC SAN) business. It provides a portfolio of software solutions that enables customers to plan, develop, automate, manage and secure applications across mainframe, distributed, mobile and cloud platforms. Its product portfolio serves markets, including cloud, data center, networking, broadband, wireless and enterprise software.

AVGO stock is predicted to reach $400 by 2030, driven by strong semiconductor demand and its leadership in analog and mixed-signal chips. The company's solid financials and R&D investments support long-term growth.

AVGO has a total of 20000 employees.