Brad Freeman
Equity Researcher, Creator of Stock Market Nerd
Broadcom looks cheap at 22x forward earnings after guiding to $115B-plus from one segment in FY2027 and $230B-plus in FY2028, without acquisitions, while the stock barely moved. The cycle is expected to support nearly 100% EPS growth over the next two years, so a cyclical discount is probably already priced in if those estimates are even remotely accurate. x.com x.com x.comÂ
Broadcom could roughly triple to $900+ per share if 30x is applied to Hock Tan's expectation of over $30 of EPS in FY2028, versus about $350 today. ASICs are expected to take about 25% of the AI accelerator market by 2030 as inference explodes, and management has consistently delivered. There is no guidance beyond 2028, and near-triple-digit AI chip growth is hard to sustain, but growth should remain strong. x.com x.comÂ
Broadcom's significant exposure to Anthropic's AI infrastructure spending and custom AI chips adds to its growth case. Annual EPS is projected to rise nearly fourfold from $8.06 LTM to $30.38 by FY2028, while the stock trades roughly 30% below its all-time high. x.comÂ
Broadcom looks overpriced at 83x trailing and 48x forward earnings and 29x sales, and could correct sharply if markets hit a 20% mid-term drawdown. Its strength is real: it acts like a high-end hedge fund, acquiring and operating only in leading tech themes and consistently landing on the right side of history. x.comÂ
Broadcom is a buy because its fiscal 2028 EPS is reportedly on track to exceed $30. Per @dividendology, Broadcom made that projection; applying a 20x earnings multiple implies $600 a share and 82.5% upside, excluding dividends. x.comÂ
Broadcom could plausibly reach $30 of EPS in 2028 if revenue growth accelerates above 100% year over year, which would justify adding more. Current growth does not yet make that possible, so it is worth waiting for quarterly EPS to hit $3, then $5, before committing more, investing with discipline rather than speculating. x.comÂ
Broadcom faces a correction of at least 30% because semiconductors are at the end of their hog cycle. x.comÂ
Broadcom is at least 30-40% undervalued, trading at about a market multiple of 22x forward earnings despite many growth drivers. FY2026 Q3 revenue rose 86%, operating income 92% and EPS 96% year over year even with supply constraints, though Q4 guidance was a little light. Per @saso_capital, Hock Tan said data-center readiness, not supply, is the constraint, across six XPU customers including Anthropic, OpenAI, Meta and Google. The stock is bouncing off a big volume shelf from April 2025. x.com … Show more
Broadcom's custom AI chips and networking could drive earnings beyond what its valuation implies over 2-3 years. It is the favorite semiconductor opportunity now, preferred over NVIDIA without replacing it. AI semiconductor revenue is projected at about $58B in FY2026, $115B in FY2027 and potentially $230B in FY2028. At about 17x FY2027 consensus adjusted earnings, risk/reward is compelling if growth materializes; customer commitments add visibility, but delays and financing remain risks. x.com … Show more
Broadcom's demand case looks less credible because the person projecting a fourfold EPS increase by 2030 now says that demand comes from gamblers consuming tokens. The person raising roughly $100B to finance chips also warns that a lack of capital could stop the bubble. Broadcom is no longer appealing. x.com x.comÂ
Broadcom looks cheap if its growth forecasts are even vaguely realistic, with PEG ratios of 0.45, 0.28 and 0.40 for October 2026, 2027 and 2028. Semiconductor revenue rose 221% year on year to $16.7B and is guided to $21.7B next quarter. Revenue of $29.6B and EPS of $3.32 beat consensus. Shares fell 4.5% after hours because revenue guidance of $34.8B was slightly below the $35.03B consensus, yet that still implies 93% growth. x.comÂ
