At 15.93 P/S, Broadcom Is Overvalued: Buy, Sell or Hold the Stock?

Broadcom AVGO shares are overvalued, as suggested by the Value Score of D. In terms of the forward 12-month price/sales (P/S), AVGO is trading at 15.93X, close to the median of 17.69X and higher than the broader Zacks Computer and Technology sector’s 7.39X. Broadcom is also trading at a premium against peers, NVIDIA NVDA and Marvell Technology MRVL, shares of which are currently trading at 15.17X and 6.86X, respectively. So, what should investors do with the AVGO stock at the current level? Let us dig deeper to find out.

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Broadcom’s strong growth prospects are driven by growing AI revenues. AVGO is benefiting from strong demand for XPUs, which are a type of application-specific integrated circuits necessary to train Generative AI models. Alphabet GOOGL and Meta Platforms are major users of these XPUs. In fiscal 2025, AI revenues surged 65% to $20…