After the speech finished, the prime minister made his way out of the mosque through the crowds and continued to be shouted at by several people, with one asking: "Why is he here? Get him out of here! It's a disgrace".
After the speech finished, the prime minister made his way out of the mosque through the crowds and continued to be shouted at by several people, with one asking: "Why is he here? Get him out of here! It's a disgrace".
Broadcom's recent business momentum has been impressive. But the artificial intelligence (AI) business underneath the surface is exploding so fast that its growth rate is about to accelerate massively. This setup makes it an interesting time to look at the stock. Are shares cheaper than they look, given the momentum around the corner? And is the company's accelerating momentum sustainable? Of cour...
Broadcom's recent business momentum has been impressive. But the artificial intelligence (AI) business underneath the surface is exploding so fast that its growth rate is about to accelerate massively. This setup makes it an interesting time to look at the stock. Are shares cheaper than they look, given the momentum around the corner? And is the company's accelerating momentum sustainable? Of course, just because a business is great doesn't automatically make the stock great. So we need to look at both the business and the stock's valuation. With shares of Broadcom (AVGO +1.43%) commanding a price-to-earnings ratio of 62 as of this writing, investors are right to wonder if all this good news is already baked into the price. So, does the company's exceptional momentum make the stock a buy? Or should investors stay on the sidelines? Explosive AI momentum Broadcom's first-quarter revenue hit a record $19.3 billion -- up 29% year over year. But its fiscal first-quarter AI semiconductor revenue skyrocketed 106% year over year to $8.4 billion. This growth is being fueled by aggressive capital expenditures from major technology companies, or hyperscalers, that are turning to Broadcom for custom AI accelerators and advanced networking chips. And the momentum is only accelerating. Management guided for fiscal second-quarter revenue of approximately $22 billion. This implies a blistering 47% year-over-year growth rate. But here's where things really get wild. The company expects second-quarter AI semiconductor revenue to reach $10.7 billion -- implying a 140% year-over-year surge. This top-line growth is translating into exceptional profitability. Broadcom reported fiscal first-quarter adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $13.1 billion, representing an incredible 68% of total revenue. Visibility into the future One of the hardest things to underwrite in the semiconductor industry is the durability of a growth cycle. But Broadcom...