Is Broadcom Stock Cheap Enough Yet?
Shares of Broadcom (AVGO) closed at $328.75 on October 16, 2026. That price sits 31.5% below the highest close of the past year, which the stock reached on June 2. Shareholders lost 5.7% over the past twelve months, while the S&P 500 returned 16.2%. Even after that fall, a buyer today is betting that Broadcom’s surge in AI chip sales keeps going. So has the fall gone far enough, or is it still early?
How Cheap Is Broadcom Stock Against Its Own Past?
Broadcom stock is far cheaper against its earnings than it was a year ago, but not cheap by its own past. At the end of September 2025, the shares traded at 82.1 times the previous four quarters’ earnings. That was down from about 100 times three months earlier and 184 times at the end of 2024. A year later the multiple was down to 43.7. However, that figure is still higher than at 19 of the 35 earlier quarter ends since late 2017.
All of that drop came from higher profit. Over the year, diluted earnings per share doubled from $3.92 to $7.83. Broadcom’s operating margin over the twelve months to August 2, 2026 was 48.5%, compared to 39.0% a year earlier. That represents the highest margin at any quarter end since late 2016.
The business behind those numbers has fundamentally changed as well. AI semiconductor revenue reached $16.7 billion in fiscal Q3 2026, making up 56% of total revenue, management said on the September 2, 2026 call. Paying a multiple above its usual level for a business with margins this high looks like a fair price rather than a cheap one.
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What Broadcom Must Deliver To Justify Its Price
Broadcom has to grow faster still. Management guided fiscal Q4 2026 revenue to $34.8 billion, up 93% from a year earlier. That performance would follow fiscal Q3 revenue of $29.6 billion, which was up 85.5%.
Wall Street expects even more. Analysts forecast revenue of about $35.6 billion for that quarter, topping Broadcom’s own guide. In other words, analysts already expect Broadcom to beat its forecast by about 2%.
Management has set a larger goal beyond that quarter. During the September 2 call, the company noted that Broadcom has secured the supply to double AI revenue again, reaching about $115 billion in fiscal 2027. Supply is not the only limit, though. On the same call, management said land, power, and shell, meaning the physical data center buildings, were “more than a big concern.” These infrastructure elements dictate the timing of when new capacity gets deployed. That reality puts part of the timing for those sales outside Broadcom’s own hands.
Broadcom’s Next Report Is Expected In December
Broadcom is expected to report its fiscal Q4 2026 results on or around December 9, 2026. The stock has seen heavy volatility in both directions over the two trading days after recent reports. Shares climbed 12.9% after the September 4, 2025 report, then fell 16.4% after the December 11, 2025 report and 19.5% after the June 3, 2026 report. Following the latest report on September 2, 2026, they slipped 2.5%.
When Broadcom reports on or around December 9, fiscal Q4 2026 revenue is the central number to watch, specifically how it measures against management’s guide and the higher analyst estimate.
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