By Daniel Sparks, The Motley Fool
Publication Date: 2026-09-27 07:03:00
Broadcom (NASDAQ:AVGO) stock sits near $350 as of this writing, about 29% under its 52-week high of $495. Much of that drop came the day after the chip designer’s June 3 earnings report. Shares fell about 13% that session as investors reacted to CEO Hock Tan’s decision not to lift the company’s artificial intelligence (AI) chip forecast.
But the forecast has moved since then, and it moved up.
Missed AI’s “Act 1”? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »
The company’s profits have risen, too. Broadcom’s non-GAAP (adjusted) earnings per share over the last four quarters are about 43% higher than in fiscal 2025. But the stock is back to about where it ended 2025.
Put another way, investors are paying the same price for a far more profitable company.
Sure, the market does have one legitimate worry,…
