BN · rank #3 · 2026-09-04
AVGO
NASDAQ · $1.70T (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 1.12 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +63.8% |
| Forward net margin Consensus forward net margin. | +39.9% |
| Net margin TTM Trailing twelve month net margin. | +38.9% |
| Margin expansion Forward minus trailing net margin (percentage points). | +1.1% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 0.42 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 1.51× |
| Analyst upside Spread between the consensus 12m target and the current price. | +47.3% |
| Last EPS surprise Most recent reported EPS versus consensus. | +7% |
| Market cap (USD) | $1.70T |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
Broadcom is a global semiconductor and infrastructure software company whose AI chip and advanced packaging revenue is scaling rapidly, with AI semiconductors now comprising nearly half of total revenue.
Rationale
The bottleneck_solver thesis is strongly reinforced — Broadcom's proprietary XPU co-design relationships with hyperscalers (Google, Meta, Apple) and its new 3.5D F2F XDSiP platform create a sole-source packaging and silicon integration bottleneck that competitors cannot replicate near-term, validated by 143% YoY AI revenue growth and a raised $56B FY26 AI guide.
Material risks
- 1Hyperscaler customer concentration — if Google (TPU) or Meta accelerate in-house XPU design to the point of internalizing Broadcom's co-design role, the single-source moat collapses and the $56B/$100B AI revenue trajectory breaks.
- 2Q3 FY26 earnings report drops September 2 (the as_of_date), creating binary event risk — the ~84% YoY implied guide is already priced into a $1.7T market cap, and any miss or guidance softness would sharply reprice the fwd_PEG of 0.42.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.