"Sometimes in discussions about artificial intelligence (AI) hardware providers, Broadcom ( NASDAQ:AVGO) gets left out of the conversation. Yet, it's a mistake for technology investors to overlook Broadcom and AVGO stock. Along with the potential for a Broadcom stock split, there may be a value proposition for investors here. In five years, unless there's a catastrophic event, Broadcom shares could trade much higher than they do today."
"Not an Obviously Attractive Stock At first glance, some investors might not be immediately find Broadcom stock attractive. For one thing, the share price recently pulled back from nearly $415 to $340, representing a scary 18% drawdown. That's not necessarily a bad thing, though, if you're a value investor looking to hold AVGO stock for five years. Maybe the 18% share-price correction was needed in order to bring Broadcom down to a low valuation."
Broadcom experienced an 18% share-price pullback from nearly $415 to $340, which could present a long-term buying opportunity for value investors. The trailing 12-month P/E ratio stands around 71–72, and the forward annual dividend yield is approximately 0.76%, limiting appeal for income investors. The company reported record fourth-quarter fiscal 2025 revenue of $18 billion, up 28% year over year. Management emphasized growth potential tied to artificial intelligence hardware demand and suggested a possible stock split. Over a five-year horizon, shares could trade much higher barring catastrophic events.
Read at 24/7 Wall St.
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