AVGO Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Broadcom Inc. (AVGO) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong financial performance, robust AI-driven growth, and positive analyst sentiment outweigh the recent minor price pullback and cautious congressional trading data. The stock is well-positioned for long-term growth in the AI infrastructure market.
The technical indicators show a neutral to slightly bullish trend. The MACD is above 0, indicating positive momentum, though it is contracting. The RSI is neutral at 48.433, and the moving averages are bullish (SMA_5 > SMA_20 > SMA_200). Key support and resistance levels are Pivot: 325.631, R1: 347.42, S1: 303.842, R2: 360.882, S2: 290.38. The stock is trading near its support level, which could provide a good entry point for long-term investors.
["Broadcom's leadership in AI infrastructure, supported by a $21 billion order for custom AI chips.", "Strong partnerships with major players like Alphabet for tensor processing units.", "Projected revenue growth of 52% in 2026, driven by AI chip sales.", "Analysts have consistently raised price targets, with the highest target at $510, and maintain strong Buy ratings.", "Significant growth in AI chip revenue, which increased by 65% to $20 billion in fiscal 2025."]
["Recent congressional trading data shows 7 sale transactions and no purchases, indicating caution among policymakers.", "The stock has a 60% chance of declining by -3.78% in the next week, suggesting short-term volatility.", "Post-market price change of -0.40% and regular market change of -3.38%, reflecting recent weakness."]
Broadcom's financial performance in Q4 2025 was exceptional, with revenue increasing by 28.18% YoY to $18.015 billion. Net income surged by 96.99% YoY to $8.518 billion, and EPS rose by 93.33% YoY to 1.74. Gross margin improved to 65.22%, up 11.24% YoY. These metrics highlight the company's strong growth trajectory, particularly in the AI chip segment.
Analysts are overwhelmingly positive on Broadcom, with multiple firms raising price targets recently. Wolfe Research upgraded the stock to Outperform with a $400 price target, citing strong growth in tensor processing units. Other analysts, including Jefferies, Mizuho, Goldman Sachs, and Piper Sandler, have raised price targets, with the highest at $510. The consensus is that Broadcom's AI business and market leadership position it for significant long-term growth.
