Is AVGO a good stock to buy? We came across a bullish thesis on Broadcom Inc. in Cristóbal Botanch’s Beyond the Noise Substack. In this article we will summarize the bull thesis about AVGO. Broadcom Inc. stock was trading at $396.60 on June 8.th. AVGO’s trailing and forward P/E were 64.18 and 33.90 respectively according to Yahoo Finance.
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Broadcom Inc. designs, develops and supplies various semiconductor devices and infrastructure software solutions internationally. AVGO is increasingly positioned as one of the most important beneficiaries of the next phase of the artificial intelligence boom, as the industry moves from training large language models to deploying them on a global scale. While Nvidia has become the dominant player in AI training infrastructure through its GPUs, Broadcom is playing a critical role in AI inference, where efficiency, power consumption and cost become much more important than pure computational flexibility.
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The company has become a leading designer of custom AI chips, known as ASICs, that are optimized specifically for hyperscale workloads and enable cloud providers to significantly reduce the cost of running AI applications. Major hyperscalers, including Microsoft, Amazon, Google, and Meta, are increasingly developing proprietary AI silicon to reduce reliance on expensive Nvidia GPUs, and Broadcom frequently acts as the engineering and networking partner behind these efforts.
In addition to custom silicon, Broadcom also provides the high-speed network infrastructure needed to connect massive AI data centers, creating another powerful avenue for growth as AI adoption accelerates globally. Despite investor concerns about potential overspending on AI, Broadcom’s business fundamentals have continued to strengthen, and free cash flow per share has increased significantly even as valuation multiples have compressed.
The long-term opportunity remains huge: Capital spending on hyperscale AI could reach $400 billion to $500 billion annually by the late 2020s. Broadcom has indicated that its AI semiconductor revenue alone could surpass $100 billion by 2027, and if those projections materialize, the company’s valuation could eventually approach $1,000 per share, implying a substantial improvement over current levels.
Previously, we covered a bullish thesis on Broadcom Inc. by Daan Rijnberk in March 2025, which highlighted the company’s AI networking leadership, VMware integration, free cash flow expansion and attractive valuation after a pullback. The AVGO share price has appreciated 102.82% since our coverage. Cristóbal Botanch shares a similar view, but emphasizes Broadcom’s growing dominance in AI inference infrastructure through custom ASICs and hyperscale networking solutions.
