Broadcom Inc.

AVGO remains in a long-term uptrend, but the stock has pulled back from its 52-week high and is now trading below its 200-day average after a sharp multi-month reset. That leaves the setup constructive but no longer extended, with the next test whether buyers can reclaim the intermediate trend.

Wall Street stays firmly constructive: consensus is Buy, with 51 Buys, 7 Holds, and no Sells. The average target sits above the current tape, and recent calls were mostly reaffirmations or target raises, even as one downgrade and one target cut showed some caution after the latest guidance reset.

Broadcom has a clean beat streak, with 8 straight EPS beats and the latest quarter topping estimates by 2.1%. Next-year EPS estimates still point sharply higher, so shareholders should watch whether AI and infrastructure software demand can support that path after the recent guidance disappointment.

Recent activity leans to net selling, but much of the table is award and gift noise rather than discretionary trading. The meaningful signals are clustered sales from senior officers and directors, including several multi-million-dollar disposals, which keeps insider tone cautious despite the company-level strength.

Profitability remains elite, with gross margin at 76.3% and net margin at 38.85%, supported by 47.9% revenue growth and 85.4% earnings growth year over year. Free cash flow was $28.16 billion in fiscal 2025, but debt is heavy at $65.14 billion versus $16.18 billion of cash.

Broadcom stands out on margin quality and cash generation versus most semiconductor peers, especially with its mix of chips and infrastructure software. The valuation is still rich at 61.71 times earnings, so the market is paying for durable execution and AI-linked growth.