Broadcom posted its best quarter ever, yet its stock is up only 0.59% year to date after falling 8.04% in a week to $346.25, as critics point to its slower segments. The author, who has kept adding to his position, sees those segments as ballast: AI semiconductor revenue rose 221% to $16.70B, Infrastructure Software grew 29%, and free cash flow reached $13.665B. He compares Broadcom's valuation and cash flow with NVIDIA and AMD, and lists risks including six XPU customers, $59.6B of gross fixed-rate debt, and gross margin heading to 73%. He says he would keep buying if Q4 AI revenue lands near guidance in the December 9, 2026 earnings report.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: I’m Simply Not Worried About Broadcom’s Multi-Segment Drag
Read the original on Yahoo Finance ↗
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