Record Revenue, Slowing AI: Still Worth Chasing AVGO After Earnings?
Broadcom's revenue for the second fiscal quarter hit a record high, with EPS continuing to grow by over 40%, beating expectations. AI revenue for the quarter rose by 46%, marking a noticeable slowdown from the previous quarter's 77% growth. Broadcom expects its AI chip revenue to increase for a tenth consecutive quarter in Q3, accelerating to $5.1 billion—but still 3.7% below some analysts' higher estimates.
AVGO fell 4% in the overnight trading. The stock is still at highs as it set all time high yesterday.
----------
Is it worth chasing at a high level?
Or wait for a fair price?