By William Kerwin, CFA
Publication Date: 2026-04-16 00:00:00
Broadcom AVGO is one of the largest semiconductor companies in the world. Its stock has languished since December 2025 over fears about XPU profitability and competition with MediaTek. We don’t see either as a material threat to results, though. Broadcom’s recent long-term agreement with Google should assuage some fears of losing share to MediaTek. We think the stock’s pullback provides long-term investors with an excellent opportunity to buy this high-quality stock at a rare discount to fair value. The stock is so attractive that Morningstar Chief US Market Strategist Dave Sekera included it as one of his stock picks in a recent episode of The Morning Filter podcast, 5 Stocks to Buy Before Growth Stocks Come Back.
Broadcom is an amalgamation of high-value, differentiated, and moaty chip and software businesses. The company is a prolific generator of cash flow and a terrific aggregator of companies, big and small. Its ability to acquire and streamline businesses generates…
