Broadcom Q4 Earnings: The Price Of Ownership Includes Volatility

Summary

• Broadcom (AVGO) delivered robust quarterly results, with AI silicon driving 28% revenue growth and expanding its addressable market and customer base.
• AVGO's AI-related revenue now comprises nearly 60% of semiconductor sales, and AVGO is leveraging its considerable strength in AI networking and compute silicon to grow its backlog.
• The legacy semiconductor business should see some improvement in FY'26, but AI growth is far and away the key driver with $73B in the backlog.
• Despite high valuation, I remain constructive on AVGO, though the trade is increasingly crowded and sensitive to any slowdown in AI investment.