What Is Happening With Broadcom Stock?
Broadcom (AVGO)’s stock exploded over 100%, fueled by a sharp revenue jump and soaring profit margins—even as its valuation dipped. Behind the scenes, AI-driven growth, a key acquisition, and bullish analyst sentiment are rewriting the playbook. Let’s dive into what’s truly powering this rally.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 11142024 | 11142025 | Change | |
|---|---|---|---|
| Stock Price ($) | 168.7 | 342.5 | 103.0% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 46,815.0 | 59,926.0 | 28.0% |
| Net Income Margin (%) | 10.9% | 31.6% | 190.3% |
| P/E Multiple | 154.4 | 85.3 | -44.8% |
| Shares Outstanding (Mil) | 4,663.0 | 4,714.0 | -1.1% |
| Cumulative Contribution | 102.9% |
So what is happening here? The stock surged 103%, driven by a 28% rise in revenue and a 190% boost in net margin, despite a 45% drop in the P/E multiple. Let’s explore the key moves behind these shifts.
Here Is Why Broadcom Stock Moved
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- AI Revenue Surge: Broadcom’s AI semiconductor revenue surged, driven by custom accelerators and networking solutions.
- VMware Integration: Successful integration of VMware boosted infrastructure software revenue and created synergies.
- Strong Earnings: Consistent revenue growth and earnings beats, often exceeding estimates, led to stock surges.
- AI Product Innovation: Launched new AI networking solutions like Velorain, 800G NICs, and Tomahawk 6 switches.
- Positive Analyst Views: Analysts maintained Buy ratings and raised price targets, reflecting confidence in AVGO’s AI future.
Our Current Assesment Of AVGO Stock
Opinion: We currently find AVGO stock attractive but volatile. Why so? Have a look at the full story. Read Buy or Sell AVGO Stock to see what drives our current opinion.
Risk: A good way to get a feel for AVGO’s risk is to check how far it fell during past market crises. It dropped about 27% in the 2018 correction, nearly 48% during the Covid pandemic sell-off, and roughly 35% in the inflation shock phase. So even with strong fundamentals, AVGO still sees significant pullbacks when markets turn sour. Solid businesses help, but sharp declines are part of the game in tough times.
AVGO stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.