Broadcom Shares Rise 60% in a Year: Is There More Room for Growth?

Broadcom AVGO shares have jumped 60% in the trailing 12-month period, outperforming the broader Zacks Computer and Technology sector’s and the Zacks Electronics – Semiconductors industry’s return of 25.2% and 53.2%, respectively. The outperformance can be attributed to an innovative product portfolio, growing clientele and an expanding partner base. AVGO’s prospect benefits from rising AI revenues despite growing concerns over overspending on AI-related infrastructure and services by hyperscalers. So, what should investors do with the AVGO stock right now? Let us dig deeper to find out.

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AVGO’s soft gross margin guidance for fiscal 2026 reflects a higher AI mix in revenues. The first-quarter fiscal 2026 guidance reflects the negative impacts of unfavorable AI mix in revenues, a sequential decline in non-AI semiconductor revenues and modest growth expectations for the…