By Alex Sirois
Publication Date: 2026-11-02 13:45:00
Broadcom’s stock is down while its revenue has surged dramatically, and the reason behind that gap points to something most investors misread as a red flag but one shareholder treats as a buying opportunity.
My position in Broadcom (NASDAQ:AVGO | AVGO Price Prediction) grew last week, and I expect to add more after its next earnings report. The stock closed at $326.08 on October 30. That’s down 12.74% over the past year, even though the business grew revenue 85.5% year over year last quarter. That gap between the stock and the business is why I’m still accumulating shares.
Supply Limits Are Why I Keep Buying
Customers want more custom AI silicon than Broadcom can physically build, and the market treats that shortfall as weakness. On the September 2 earnings call, CEO Hock Tan gave an AI semiconductor outlook of about $115 billion for fiscal 2027 and $230 billion for fiscal 2028. Then he added: “Our demand actually exceeds this outlook, and we will work to improve…
