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Broadcom Sinks as CEO Becomes Defensive on AI Opportunity -- Should Investors Buy the Dip?
Broadcom (NASDAQ: AVGO) once again reported robust artificial intelligence (AI) revenue growth in its fiscal second-quarter results released this week, with promises that the strong revenue growth would continue. The stock slipped despite an upbeat outlook, although it remains up more than 75% over the past year.Let's take a closer look at Broadcom's most recent results and the AI opportunity in front of it to see whether investors should buy this small dip.Broadcom CEO Hock Tan initially got investors excited back in December 2024 when he talked about the company having a $60 billion to $90 billion serviceable addressable market (SAM) opportunity in fiscal year 2027 with its three largest hyperscale (meaning they operate huge data centers) customers. However, when asked whether its SAM had increased, Tan told analysts he's "not playing the SAM game" and to "stop talking about SAM now."Continue reading
Broadcom (NASDAQ: AVGO) once again reported robust artificial intelligence (AI) revenue growth in its fiscal second-quarter results released this week, with promises that the strong revenue growth would continue. The stock slipped despite an upbeat outlook, although it remains up more than 75% over the past year.
Let's take a closer look at Broadcom's most recent results and the AI opportunity in front of it to see whether investors should buy this small dip.
Broadcom CEO Hock Tan initially got investors excited back in December 2024 when he talked about the company having a $60 billion to $90 billion serviceable addressable market (SAM) opportunity in fiscal year 2027 with its three largest hyperscale (meaning they operate huge data centers) customers. However, when asked whether its SAM had increased, Tan told analysts he's "not playing the SAM game" and to "stop talking about SAM now."
