Is AVGO a good stock to buy? We came across a bullish thesis on Broadcom Inc. on Beyond the Noise’s Substack by Cristobal Botanch. In this article, we will summarize the bulls’ thesis on AVGO. Broadcom Inc.’s share was trading at $396.60 as of June 8th. AVGO’s trailing and forward P/E were 64.18 and 33.90 respectively according to Yahoo Finance.
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Broadcom Inc. designs, develops, and supplies various semiconductor devices and infrastructure software solutions internationally. AVGO is increasingly positioned as one of the most important beneficiaries of the next phase of the artificial intelligence boom, as the industry shifts from training large language models to deploying them at global scale. While Nvidia has emerged as the dominant player in AI training infrastructure through its GPUs, Broadcom is building a critical role in AI inference, where efficiency, power consumption, and cost become far more important than raw computational flexibility.
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The company has become a leading designer of custom AI chips, known as ASICs, which are specifically optimized for hyperscale workloads and allow cloud providers to significantly lower the cost of running AI applications. Major hyperscalers including Microsoft, Amazon, Google, and Meta are increasingly developing proprietary AI silicon to reduce dependence on Nvidia’s expensive GPUs, and Broadcom frequently acts as the engineering and networking partner behind these efforts.
In addition to custom silicon, Broadcom also supplies the high-speed networking infrastructure required to connect massive AI data centers, creating another powerful avenue for growth as AI adoption accelerates globally. Despite investor concerns surrounding potential AI overspending, Broadcom’s business fundamentals have continued strengthening, with free cash flow per share inflecting meaningfully higher even as valuation multiples compressed.
The long-term opportunity remains enormous, with hyperscale AI capital expenditures potentially reaching $400 billion to $500 billion annually by the late 2020s. Broadcom has indicated that its AI semiconductor revenue alone could surpass $100 billion by 2027, and if those projections materialize, the company’s valuation could eventually approach $1,000 per share, implying substantial upside from current levels.
Previously, we covered a bullish thesis on Broadcom Inc. by Daan Rijnberk in March 2025, which highlighted the company’s AI networking leadership, VMware integration, expanding free cash flow, and attractive valuation after a pullback. AVGO’s stock price has appreciated by 102.82% since our coverage. Cristobal Botanch shares a similar view but emphasizes Broadcom’s growing dominance in AI inference infrastructure through custom ASICs and hyperscale networking solutions.
