After Outperforming Every “Magnificent Seven” Stock in 2025, Is Broadcom Still a Buy for 2026?

After Outperforming Every “Magnificent Seven” Stock in 2025, Is Broadcom Still a Buy for 2026?

By Daniel Foelber
Publication Date: 2025-12-15 17:00:00

Key Points

  • Broadcom just delivered another record year of blowout results.

  • Broadcom expects AI semiconductor revenue to double year over year in its upcoming quarter.

  • The valuation has gone from pricey to very expensive.

  • 10 stocks we like better than Broadcom ›

The pressure was on Broadcom (NASDAQ: AVGO) to deliver blowout fourth-quarter and full-year fiscal 2025 results on Dec. 11. And it didn’t disappoint.

Full-year revenue was up 24%, diluted earnings per share soared a mind-numbing 288%, and free cash flow (FCF) popped 39%. Broadcom is doing a phenomenal job of converting sales into high-margin growth and managing its spending so that it doesn’t impact its FCF.

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But the market cares more about where a company is going than where it has been. And Broadcom is up huge in 2025,…