AVGO Stock Recent News

It's probably safe to say that artificial intelligence (AI) is here to stay. Investments in AI infrastructure continue to soar, and companies are racing to develop and implement AI in nearly every facet of their business models.

Technology is ever-changing, and companies must stay on their toes or risk becoming obsolete. Apple (AAPL -0.59%) is flirting with that line, as its artificial intelligence (AI) strategy has largely underperformed and lags behind its peers in this arena.

There's a healthy mix between returning capital to shareholders and plowing capital back into the business to fuel new ideas. The smooth joining of VMware has expanded Broadcom's addressable market and sharpened its prowess to offer end-to-end cloud and AI solutions. Given the expected sharp drop in forward P/E ratios, it's likely that the market is underestimating the durability and scalability of Broadcom's competitive advantages.

AVGO rides a 46% jump in AI revenues and robust hyperscaler demand to fuel a record 10th straight quarter of AI growth.

Microsoft, Broadcom, and Oracle were among the portfolio's top contributors for the quarter. Alternatively, Apple, Johnson & Johnson, and Berkshire Hathaway detracted from performance. Microsoft shares rebounded in calendar Q2 following a strong fiscal Q3 2025 (March quarter), driven by accelerating demand for AI-related Azure services.

Broadcom's AI semiconductor revenue surged 46% YoY to $4.4 billion in Q2, with inference driving demand acceleration into fiscal 2026. Ethernet-based networking now represents 40% of AI revenue, with scale-up clusters pushing switch content per node 5–10 times higher. VMware's VCF adoption reached 87% of top enterprise clients, generating double-digit ARR growth that cushions semiconductor cycle volatility.

AI semiconductor giant Broadcom NASDAQ: AVGO recently found its biggest bull on Wall Street yet. On June 24, analysts at HSBC issued a massive $400 price target on the stock.

There are a number of companies that are well positioned to deliver solid revenue and earnings growth over the next several years.

Sharp price surges since my last writing prompted me to reexamine Broadcom stock. I see several new developments and catalysts that can keep supporting a buy rating. 2025 Q2 earnings report reveals near-record low days inventory outstanding, signaling strong and scalable demand for Broadcom's products.

Joe Tigay joins today's Big 3 and turns to three stocks that he believes investors should keep on their radar as the market "broadens." He talks about the potential for Broadcom (AVGO) to continue its rally after its tremendous run higher, Eli Lilly's (LLY) role in the "vanity trade," and Uber Technologies (UBER) finding its "niche" as autonomous driving evolves.