AVGO值得买入；基于DCF估值的537美元意味着12-18个月内约52%的上涨空间，得益于强劲的AI增长和维持的利润率。

Broadcom predicted that its AI semiconductor business would grow to $115 billion in fiscal year 2027, then double to $230 billion in fiscal year 2028. Broadcom has already begun shipping its eighth-generation Tensor Processing Units ( TPUs) to Google and Jalapeno accelerators to OpenAI, both designed to outperform other graphics processing units (GPUs).

The company also stated that Anthropic is expected to become its largest customer by 2027 in terms of processing units (XPUs). So, business is booming for Broadcom, but the stock price fell by about 6% after the company announced its latest results. Does this make Broadcom shares a buying opportunity?

In the most recent quarter , the management team stated that demand for their AI accelerators and connectivity networks remains extremely strong. Remember that the company sells the capability to companies like OpenAI, Anthropic, and Google to work with them on developing their own processing units (XPUs) or graphics acceleration units .

But they also have networking equipment, namely Tomahawk switches, which are Ethernet switches that the management team says continue to grow regardless of whether companies are buying their own XPUs or GPUs from Nvidia.

So, the demand for those Ethernet adapters, and Tomahawk Ethernet cables, is growing regardless of whether the customer chooses Nvidia or proprietary (XPU) units.

This is an important indicator because cloud computing giants like Alphabet, Amazon, Meta Platforms and Microsoft are increasingly turning to multiple vendors to assemble their AI data centers.

Well, the big cloud computing companies are more skilled at putting these components together, and they are more interested in working with Broadcom even if they are buying GPUs from Nvidia, which are considered best in their class.

The management team stated that the momentum continued into the fourth quarter, and they expect AI semiconductor revenues to accelerate to $21.7 billion. This represents a 236% year-on-year increase.

They expect the non-GAAP operating margin to remain steady at an excellent level of 66%. This was one of the challenges that worried investors. Broadcom has two main sectors. They have an AI solutions sector , and then they have a software sector that generates higher overall profit margins.

Well, more of its growth comes from the AI semiconductor sector, which has lower gross profit margins. Therefore, investors are concerned about Broadcom's ability to maintain its overall operating profit margins, which it has managed to do so far thanks to its rapid expansion, where a decline in the gross profit margin is offset by a rise in the overall operating profit margin.

Net revenue rose to 29.6 billion, an increase of 86%, and operating income rose to 15.9 billion, an increase of 171%. These are the situations that confuse new investors; They look at these numbers, with revenue growth of 86% and profit growth of 170%, and then they see the stock price reaction, which has fallen by more than 5%, and they are confused. What's going on here? How much more can the results improve ? However, the stock price is falling, and I can understand the reason for the confusion.

Free cash flow increased by 95% to reach 13.7 billion. You can see semiconductor solutions and infrastructure software here, which are the two sectors that Broadcom advertises. The semiconductor solutions sector is the booming part of its business. It has achieved a growth rate of 127 % year-on-year. This is the part of the business that management expects to generate $115 billion in revenue in fiscal year 2027, and $230 billion in fiscal year 2028. This is the fastest-growing part of the company's business. It will constitute the dominant share of total revenues.

But it also achieves lower gross profit margins than infrastructure software businesses , which are still growing at a rate of 29%, a very good growth rate for this sector, but one that pales in comparison to semiconductor solutions.

Looking ahead, management anticipates strong growth again, reaching $ 34.8 billion, which represents an increase of approximately $5.3 billion over the previous quarter. And that operating profit margins remain stable at 66%.

I believe that keeping operating profit margins steady or at any level above 60% is healthy and good news for investors. Although the company has shifted more towards activities with lower gross profit margins while maintaining overall operating margins, this is a significant gain for Broadcom stock investors .

Cash flow from operations nearly doubled to 14.2 billion, up from 7.17 billion in the same quarter last year, representing an acceleration; In the first three quarters of 2026, cash flow from operations rose to $33 billion from $ 19.8 billion. Therefore, the growth in cash flow from operations is accelerating.

One thing that surprised me was the lack of any common stock buybacks during the last quarter, even though the company generated $ 14 billion in cash flow , and its business model is relatively asset-light and doesn't require much reinvestment, yet no shares were repurchased. What they chose to do instead was pay off the debts. $5.6 billion was paid as debt repayment obligations. So this was an interesting capital allocation option by the current management team, as they chose to pay off part of their debt that had increased as a result of the acquisition of VMware a little over 12 months ago. Thus, they choose to reduce their debt a little more than they choose to repurchase shares.

Of course, repurchasing or paying off debt reduces the company's interest expense, which will then leave the management team with more cash flow to allocate to future share buybacks if they choose to do so.

Consequently, after the sell-off, Broadcom stock is now trading at a forward price-to-earnings ratio of only 18. It is a really cheap valuation for a company whose revenues are growing as fast as Broadcom's, with operating profit margins exceeding 60% in a booming sector that enjoys competitive advantages and strong relationships with some of the biggest buyers of this technology. I believe this represents a winning deal for investors at these levels.

Similarly, I updated my valuation of Broadcom using discounted cash flows, bringing the valuation to $537 per share compared to the current market price of $354. Therefore , I see an upside of approximately 52% for Broadcom stock over the next 12 to 18 months.

So, to answer the question I posed in the title, is this an opportunity to buy when the price is low? I am excited about this purchase opportunity. Yes , I have rated the stock as a buying opportunity with high conviction and a high level of confidence. I own Broadcom shares in my investment portfolio. I am interested in buying more of them. I am more optimistic about Broadcom stock after these results and the price correction than I was before these results. I am more interested in adding more to my financial center.