⚠️ DON'T SELL YOUR $AVGO (BROADCOM) STOCK! WATCH THIS RIGHT NOW!

追加: 2026-06-04

[00:00:00]A tough evening for all Broadcom holders, ticker symbol AVGO.

[00:00:05]But, I'm considering this actually as a significant buying opportunity for AVGO stock. And I'm going to go ahead and break down everything including their earnings, what happened, why it's tumbling, because right now Wall Street and retail investors, all they want is above perfection, which we don't live in a perfect world, but you need to understand that the margins, the numbers, the revenue, the EPS, absolutely massive. And the forward guidance are still very bullish even though the market decided to bet against it. Now, remember as always, never financial advice, just trying to put you guys on the plays that I'm in. If you're new around here, smash the like button and also consider subscribing to the channel. Let's dive right in. Broadcom.

[00:00:46]Ooh, down 13.65% in after hours at $413, but you need to understand that all in all, to be 100% honest and transparent with you guys, it's actually not looking that bad. So, the S&P 500 also came down today as stocks decided they want to cool off, which is totally fine. We need to see consolidation, but this candle, I think it's making it seem a little bit oversold. We are testing a prior high from December 2025, and it looks like we fell below the 20-day moving average, coming towards the 50-day moving average, but I see this, as you guys know, especially when we're in this bubble environment, bull environment, if we fall after a really big rally to the 50-day or 100-day moving average, those are buying opportunities or strike prices. Tomorrow at market open, I'm looking to dollar cost average and increase my position in AVGO. And it's simple.

[00:01:41]The numbers make sense to me, and it should make sense to you. $22.19 billion, beating expectations with strong year-over-year growth driven by AI. The earnings per share, $2.44, beating the $2.39.

[00:01:57]AI semiconductors continue growing very, very fast. Their EBITDA beat expectations. FCF, again, this is sure, a little bit below expectations. AI semiconductors, and this is what really decided to bring the stock down.

[00:02:13]$10.8 billion versus $11.3 billion, which is still 143% year-over-year. The stock plunged because of basically four key reasons, guys. Number one, guidance wasn't explosive enough, unfortunately.

[00:02:27]As crazy as it may be, Q3 outlook, $29.4 billion revenue mentioned in some of the reports, beating modestly, but didn't blow away heightened expectations that people thought, "Oh, we're going to see $40 billion revenue or $35 billion." But, $29.4 billion was just not enough, and investor investor's were looking for more on this AI acceleration.

[00:02:52]In addition, Broadcom shares extended decline during the earnings call. Hock Tan accidentally started the AVGO call, reading the Q2 2025 prepared remarks. A little bit of a yucky there, and again, it's okay. Mistakes happen, but you shouldn't make mistakes when it comes to being a multi-trillion-dollar company.

[00:03:10]The product mix and margin comments, and this is also very important for Broadcom.

[00:03:14]It's that >> [clears throat] >> Excuse me.

[00:03:17]Higher mixes of AI revenue can sometimes pressure gross margins short-term, not long-term, but short-term.

[00:03:24]A similar dynamic hurt the stock in prior quarters for AVGO or Broadcom.

[00:03:29]Non-AI parts including VMware related were softer than expected, which dragged sentiment trading at 90 to 95x forward earnings near all-time highs. The bar's insanely high for AI for all AI names right now, and any hint of not accelerating fast enough as hoped triggers significant selling. Period.

[00:03:49]This isn't uncommon, by the way, for a stock that's doing this, that's up absolutely massively over the last few years. And if you look at, just to show you guys a simple, in the last year, up 86%. A little bit of a cool-off is totally normal, which will allow investors the opportunity to get in. You need to have a dynamic market for it to keep going. There's no such thing as up only, and I hope none of you live in that kind of delusion. But, this again is presenting a buying opportunity.

[00:04:17]And why do I think the dip should be bought?

[00:04:21]I'm going to give you guys a fully balanced view.

[00:04:24]Now, AVGO's down 13%. This is per Shea Bal- uh Balur. Balur. After management kept its AI targets at 10 gigawatts in 2027 and a 100 billion long-term instead of raising guidance like prior quarters.

[00:04:38]The pressure's also margin related with Google TPU growth carrying lower gross margins than network networking and software.

[00:04:45]I still think high margin and AI network can help offset the mix over time, so this feels more like expectations reset than the thesis actually being damaged.

[00:04:55]Okay? I thought that was very well put by Shea.

[00:04:58]But, you got to remember, there are some really big There's a bull case and a bear case for everything, and I'm going to break down both. The bull case is AI tailwinds remain very strong, custom ASICs, and hyperscalers Google, Meta, Microsoft, you name it, networking chips, backing uh excuse me, backlog uh reportedly $73 billion plus, by the way.

[00:05:19]Plus in their AI order book and some commentary, long-term AI infrastructure spend is secular.

[00:05:26]Strong history of execution and dividend growth for Broadcom. You got to remember, this is a $2.27 trillion company. It went down 13% after hours, meaning it lost $250 billion worth of value.

[00:05:38]Again, paper value.

[00:05:39]So, with that being said, strong history of execution. This is a company that's been around for probably some of you that are watching older than you are.

[00:05:49]Broad uh broader semi AI sector rotation could support a rebound if macro stays okay. The biggest concern, in my opinion, and the biggest bear case is if macro decides to play against us. But, we're seeing some positive positivity with this whole war thing, and with that, we're hoping that we see oil prices start to come down and keep the macro climate at least somewhat optimistic.

[00:06:10]So, with all of that being said, the bear case, of course, for Broadcom, very expensive valuation. That's the truth.

[00:06:16]93 PE, 95 to 90 to 95 forward earnings.

[00:06:20]That's where was it all-time highs after this $250 billion sell-off? We're losing about 13 to 14% of its total valuation.

[00:06:28]Now, we're talking at least still a little bit of inflated PE, but it's coming back down to Earth.

[00:06:34]AI CapEx could face digestion periods or delays. Hyperscalers have massive spends already. So, that's what I'm going to be watching in terms of the future of all things AI, because we know Micron is going to be reporting earnings at the end of June, and that's also going to be a very impactful earnings call. That will shift the market one way or the other.

[00:06:56]Because we don't want to see multiple companies come a little bit below exceeded expectations. Because we already exceeded expect But, they want more. That's what the problem with the market is right now. They want hot hot hot.

[00:07:08]Macro risks, of course, if, for whatever reason, geopolitical issues happen, things happen with chip-related issues, recession starts looming, macro, the war continues, obviously, that's going to give a little bit of a risk there. But, momentum, if it reverses with this capitulation candle that has formed during today's market, my only fear is it causes more capitulation across the market, as well.

[00:07:34]Do I see that happening?

[00:07:36]No. If you're a long-term investor with multi-year horizon, I think that Broadcom, guys, is one of the most easy, I'm talking easy buys in this market today.

[00:07:46]You got to make that decision for yourself, but again, I think with anything it is absolutely a steal when it's on any dip.

[00:07:56]From a valuation perspective, maybe not.

[00:07:57]Can we capitulate to the 100-day moving average to $375? It's possible. But for me, I like the price today compared to the price yesterday and compared to the price over the last few days of really strong candles leading up to the earnings call. Same as Nvidia, it's doing almost copy-paste the exact same thing. We will see a rebound at some point. And if you want to start investing, check out the link down in the description below for Webull.

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[00:08:30]Honestly, investing has been an absolute blast lately. And I hope that we continue to see significant momentum and gains across the market. So, with that being said, you're going to also get some free fractional shares when you deposit $500 or more. Any deposit, of course, gives you extra value to your account. $150,000 worth of value coming straight to your pocket. I appreciate you all so much.

[00:08:51]That's all I have for you guys today.

[00:08:52]And until next time, as always, keep investing.

[00:08:55]Peace.