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News  ›  The Motley Fool

Up Around 60% This Year, Is Broadcom Stock Still a Good Buy?

The Motley Fool Logo The Motley Fool By David Jagielski
Up Around 60% This Year, Is Broadcom Stock Still a Good Buy?

Broadcom has seen significant growth in AI chip demand, with stock rising 60% in 2025, but its high valuation and potential vulnerability to AI spending slowdowns raise concerns about future performance.

Insights
ASTS   negative

Analysts view stock as overvalued, with consensus price target implying nearly 39% downside potential. High market valuation ($35 billion) compared to minimal revenue (<$5 million) contributes to negative outlook.


AVGO   neutral

While the company has strong AI-related growth and high-profile deals, its extremely high price-to-earnings ratio (nearly 100x) and potential exposure to AI spending fluctuations create investment uncertainty