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Broadcom (NASDAQ:AVGO) just dropped the kind of news that makes investors sit up and take notice. While U.S. export restrictions on AI chips to China might rattle others, Broadcom is shrugging it off. Citi analysts note potential risks tied to Bytedance, a key customer projected to bring in $2$3 billion in 2025 sales. But here's the kicker: AI-heavyweights like Google (GOOGL) and Meta (NASDAQ:META) are set to pump $10 billion into Broadcom's ASIC sales next year. Throw in booming demand from new powerhouses like OpenAI and Apple (NASDAQ:AAPL), and you've got a recipe for growth that dwarfs any headwinds.
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Let's talk numbers, because Broadcom's fiscal 2024 results are jaw-dropping. Revenue soared 44% to a record $51.6 billion, with AI leading the chargea staggering 220% jump in AI revenue to $12.2 billion. Its semiconductor and infrastructure software segments smashed expectations, delivering $30.1 billion and $21.5 billion, respectively. The cherry on top? An 11% quarterly dividend hike to $0.59 per share, marking the 14th consecutive annual increase. Oh, and the company's free cash flow? A whopping $19.4 billion, positioning Broadcom to keep rewarding investors while powering ahead.
Looking forward, Broadcom is brimming with confidence, forecasting a 22% revenue jump in Q1 FY25 to $14.6 billion. Citi remains bullish, slapping a Buy rating and a $220 price target on the stock. Broadcom isn't just riding the AI waveit's building the surfboard, the wave, and the entire beach. If you're looking for a leader in tech that knows how to navigate challenges and crush expectations, Broadcom's got your attention.
This article first appeared on GuruFocus.