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Broadcom Inc. (AVGO) Stock Analysis

Breakout setup

Buy WaitModerate Confidence

Technology · Semiconductors

Wait for pullback to $387.69. At $419.45 the A.R:R is 0.3:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $387.69 (Default 5pct Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Concentration risk — Supplier: TSMC (95.0%); Thin upside margin: 4.6%.

Broadcom designs, develops, and supplies semiconductor and infrastructure software solutions across networking, AI data centers, wireless, servers/storage, broadband, and industrial markets, as well as data center virtualization software from VMware. Revenue is generated from... Read more

$419.45+10.1% A.UpsideScore 6.5/10#4 of 45 Semiconductors
Entry $387.69(Default 5pct Sticky)Stop $364.03Target $437.45(analyst − 8%)A.R:R 0.3:1Setup A.R:R 1.7:1
Analyst target$475.49+13.4%42 analysts
$437.45our TP
$419.45price
$475.49mean
$360
$630

Wait for pullback to $387.69. At $419.45 the A.R:R is 0.3:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $387.69 (Default 5pct Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Concentration risk — Supplier: TSMC (95.0%); Thin upside margin: 4.6%. Chart setup: Golden cross, above all MAs, RSI 69, MACD bullish. Growth is cheap relative to earnings, but the chart hasn't confirmed yet (PEG 0.88, quality 8.4/10, growth 9.1/10). Score 6.5/10, moderate confidence.

Passes 6/7 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 33d clear, semi cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.

Val3.8Qual8.4Grw9.1Mom6.8Sent7.7Ins5.0Peer4.6Tech4.4Risk6.36.5OVERALL

Thesis

Rewards
Strong earnings beat streak (4/4)
High-quality business
Strong growth profile
Risks
Concentration risk — Supplier: TSMC (95.0%)
Thin upside margin: 4.6%
Near 52-week high (2.6% away)

Key Metrics

P/E (TTM)81.4
P/E (Fwd)23.0
Mkt Cap$1.98T
EV/EBITDA54.5
Profit Mgn36.6%
ROE33.4%
Rev Growth29.5%
Beta1.25
Dividend0.62%
Rating analysts57

Quality Signals

Piotroski F8/9

Options Flow

P/C0.96neutral
IV50%elevated
Max Pain$170-59.5% vs spot

Concentration Risks(10-K Item 1A)

  • HIGHSupplierTSMC95%
    10-K Item 1A: 'During fiscal year 2025, approximately 95% of the wafers manufactured by our CMs were produced by TSMC.'
  • MEDIUMCustomertop-5 end customers40%
    10-K Item 1A: 'We believe aggregate sales, through all channels, to our top five end customers accounted for approximately 40% of our net revenue for fiscal year 2025.'
  • MEDIUMSupplierfive materials suppliers
    10-K Item 1A: 'During fiscal year 2025, we purchased approximately two-thirds of our manufacturing materials from five materials suppliers, some of which are single source suppliers.'

Material Events(8-K, last 90d)

  • 2026-04-02Item 5.02MEDIUM
    CFO Kirsten M. Spears retiring effective June 12, 2026. Amie Thuener appointed as successor CFO effective June 12, 2026. Clean handoff with named successor.
    SEC filing →
  • 2026-03-02Item 5.02LOW
    Director Eddy W. Hartenstein will retire from the Board at the 2026 annual meeting upon reaching age 75 per Corporate Governance Guidelines. Not due to any disagreement. Board size will be reduced to eight members.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 floor-breaker·1 ceiling hit

Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static

Ps
0.0
Pe
0.9
Analyst Target
5.0
Forward Pe
5.6
Peg Ratio
7.7
Forward P/E: 23.0xPEG: 0.88
GatesA.R:R 0.3 < 1.5@spotMomentum 6.8>=5.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 33d clearSEMI CYCLE PEAK CLEARBreakoutSuitability: Moderate
RSI
69 · Neutral
↑ 20D MA↑ 50D MA↑ 200D MAGOLDEN CROSSSupport $310.28Resistance $429.31

Price Targets

$364
$388
$437
A.Upside+4.3%
A.R:R0.3:1
Setup A.R:R (at entry)1.7:1

Position Sizing

ConvictionHigh conviction
Suggested %0.6%
Max %1.3%
RegimeCautious

Risk Alerts

! Reward/Risk 0.3:1 at current price — below 1.5:1 minimum

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-06-03 (33d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is AVGO stock a buy right now?

Wait for pullback to $387.69. At $419.45 the A.R:R is 0.3:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $387.69 (Default 5pct Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Concentration risk — Supplier: TSMC (95.0%); Thin upside margin: 4.6%. Chart setup: Golden cross, above all MAs, RSI 69, MACD bullish. Growth is cheap relative to earnings, but the chart hasn't confirmed yet (PEG 0.88, quality 8.4/10, growth 9.1/10). Target $437.45 (+4.3%), stop $364.03 (−15.2%), Setup A.R:R 1.7:1. Score 6.5/10, moderate confidence.

What is the AVGO stock price target?

Take-profit target: $437.45 (+10.1% upside). Target $437.45 (+4.3%), stop $364.03 (−15.2%), Setup A.R:R 1.7:1. Stop-loss: $364.03.

What are the risks of investing in AVGO?

Concentration risk — Supplier: TSMC (95.0%); Thin upside margin: 4.6%; Near 52-week high (2.6% away).

Is AVGO overvalued or undervalued?

Broadcom Inc. trades at a P/E of 81.4 (forward 23.0). TrendMatrix value score: 3.8/10. Verdict: Buy (Wait for Entry).

What do analysts say about AVGO?

57 analysts cover AVGO with a consensus score of 4.2/5. Average price target: $475.

What does Broadcom Inc. do?Broadcom designs, develops, and supplies semiconductor and infrastructure software solutions across networking, AI data...

Broadcom designs, develops, and supplies semiconductor and infrastructure software solutions across networking, AI data centers, wireless, servers/storage, broadband, and industrial markets, as well as data center virtualization software from VMware. Revenue is generated from OEM hardware design wins and enterprise software subscriptions/licenses globally.

Related stocks: TSM (Taiwan Semiconductor Manufactur) · MU (Micron Technology, Inc.) · NVDA (NVIDIA Corporation) · TXN (Texas Instruments Incorporated) · AMD (Advanced Micro Devices, Inc.)