apolloalphainc.com

2033 Gateway Pl, 5e étage, San Jose, CA 95110

Stock Trading Department—This week’s recommended stocks AVGO

  • 26 mars 2025
  • Envoyé par : admin@gmail.com
  • Catégorie: Crypto-monnaie
Aucun commentaire

Broadcom Inc (AVGO)

Core business includes semiconductor and infrastructure software. In 2016, Avago Technologies acquired Broadcom and rebranded as Broadcom Inc. In 2023, the company acquired VMware to expand into enterprise software and virtualization. In 2025, expected full year revenue is around $61B–$63B, with 20–25% growth.

1. Investment Category

Asset Type: Large cap US semiconductor company

Main Business: AI ASIC, network chips, enterprise software (includes VMware)

Theme: AI inference/training, custom ASIC, growing infrastructure software portfolio

2. Category Breakdown

DimensionContent
Business MixIncludes semiconductor (AI, network) and infrastructure software. Both growing fast.
FinancialsFY2025 Q1 revenue: $14.9B (up 25%), net income: $7.8B (up 67%), EPS: $1.60, several times more than last year.
Cash UsageQ2 buyback + dividends paid: $7B. Shows strong cash flow.
ValuationCurrent PE ~36× (Forward PE ~36×), dividend yield ~0.9%.

3. Investment Style: Thematic Growth + Defensive Income

Thematic Growth: Custom AI chips (77% growth) and software (47% fast growth) make strong growth themes

Defensive Income: Strong cash flow supports dividends and buybacks, good for defensive investing

4. Price Trend Breakdown

  • Late February – AI peak pullback

Market reacted to NVDA’s report; semiconductors fell. AVGO dropped ~7% to around $190. Short term downtrend, broke 50 day moving average.

  • Early March – Earnings rebound

After Q1 earnings on 3/6, stock rose over 8% after hours to $194–$195. Volume spiked. Driven by AI + software. Then pulled back again with tariff and AI spending concerns.

5. Technicals & Flow

IndicatorStatus
Support~$185 (short term), $171 (mid term), if breaks could drop to $160
Resistance$195–$200 is recent high and 50 day moving average
VolumeBig volume on earnings day. In pullback phase, traders took profit or stayed out.
Price RangeForming short term trading box. Need to see breakout or further drop.

6. Catalysts

Bullish drivers:

AI chip demand up 77% YoY. Enterprise software growing steadily (47% YoY). Buyback and dividend plans boost confidence

7. Trading Suggestions

Price RangeStrategy
$170–$185Good to buy in stages or open new position. If mid term trend holds, can build main position.
$185–$195Confirming rebound after earnings/dividend. Light add on buys to catch next move.
Breaks > $195–$200If volume breaks through, trend may restart. Target $260+.
Drops < $161Weak signal. Reduce position or exit. Wait for next trigger to buy back in.


Laisser un commentaire