UK investors are buying Broadcom shares after their 20% crash

UK investors have been piling into Broadcom (NASDAQ: AVGO) shares since they crashed (more than 20%) after its earnings report. Last week, they were among the most bought shares on AJ Bell.

Is this a smart move? I think so – I’ve actually been making this trade myself.

Earnings were actually very strong

After Broadcom posted its earnings for Q2 last week, its share price was hammered. However, the results were actually very strong.

For the quarter, revenue came in at $22.2bn, up 48% year on year. Meanwhile, non-GAAP net income was $12bn, up 55%.

Zooming in on the AI chips side of the business, revenue here grew 143% to $10.8bn. In its earnings release, the company said this growth was driven by increasing demand for custom AI accelerators and AI networking.

Looking ahead, Broadcom said it expects semiconductor revenue from AI to grow by more than 200% to $16bn in Q3. Overall revenue for the current quarter is expected to…