How Broadcom Stock Gained 50%
From May 11, 2025, to February 5, 2026, Broadcom (AVGO)’s stock soared 50%, fueled by impressive AI-driven revenue gains and back-to-back earnings beats. Even with a falling P/E multiple, confidence surged on strong guidance and a dividend boost—proof positive that fundamentals and future bets drove the rally.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 5112025 | 2052026 | Change | |
|---|---|---|---|
| Stock Price ($) | 207.0 | 310.5 | 50.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 54,529.0 | 63,887.0 | 17.2% |
| Net Income Margin (%) | 18.5% | 36.2% | 96.0% |
| P/E Multiple | 96.5 | 63.5 | -34.1% |
| Shares Outstanding (Mil) | 4,695.0 | 4,733.0 | -0.8% |
| Cumulative Contribution | 50.0% |
So what is happening here? The stock surged 50%, driven by a 17% revenue rise and a nearly doubled net margin, despite a 34% drop in P/E multiple. Now, let’s explore the moves behind these shifts.
Here Is Why Broadcom Stock Moved
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- Q3 2025 Earnings Beat: Broadcom reported Q3 FY2025 revenue of $16.0B and EPS of $1.69, beating estimates.
- Q4 2025 Earnings Beat: Q4 2025 results exceeded expectations, with revenue of $18.02B and EPS of $1.95.
- Strong AI Revenue Growth: AI semiconductor revenue surged in Q3 and Q4 2025, driving overall strong performance.
- Positive Q1 2026 Guidance: Broadcom provided strong Q1 2026 guidance, expecting continued AI semiconductor growth.
- Increased Quarterly Dividend: The company increased its quarterly common stock dividend by 10% to $0.65 per share.
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.
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