Should I Buy Broadcom (AVGO)? — Finance YouTuber Analysis

The YouTuber recommends Broadcom due to its dual dominance in AI networking silicon: custom AI accelerator design for hyperscalers and 80% market share in Open Ethernet switching. The company entered 2026 with $73 billion in signed AI orders, demonstrating strong committed revenue. Its AI segment has grown significantly, now representing 43% of total revenue, with strong guidance for the next quarter.

“Broadcom's a little unique because they own two pieces of the networking silicon layer simultaneously. The first is custom AI accelerator design... That happens to give them 60 to 70% of the custom AI chip market.” — ▶ 01:09:00

The YouTuber is building a position in Broadcom via a savings plan, highlighting its unique position as a leading fabless chip designer and its critical role in global internet traffic (99% runs on Broadcom chips). It's also becoming a key partner for custom AI chip design for tech giants. Despite a high P/E of 73, an expected 37% annual earnings growth for the next five years results in a PEG ratio of 0.66, indicating undervaluation relative to its growth.

“Ich bin da ja schon Mitte Januar erste Position in Broadcom eingegangen, baue diese aktuell über einen Sparplan weiter aus.” — ▶ Watch clip

The YouTuber suggests Broadcom (AVGO) as a key player in the chip sector, particularly for custom AI chips supplied to major tech companies. He emphasizes that money is flowing into this area due to the massive spending on data centers and AI infrastructure, making AVGO a strong beneficiary.

“My pick in in in all of those industries would be first of all chips. Yeah. Broadcom, AVGO, huge company, children and a half market cap. They supply custom AI chips to the biggest, you know, Microsofts and Amazons and so on on the planet.” — ▶ 20:50

The analyst rates Broadcom as a buy, noting its strong operating profit margins and significant revenue growth, although not as strong as Nvidia. He calculated a fair value of $498 per share, which is above its current market price of $419, indicating it is undervalued, especially after a recent post-earnings pullback.

“Broadcom stock looks undervalued to be sure. Similarly, I calculated a fair value for Nvidia stock and my conclusion is that Nvidia is worth about $308 per share compared to the current market price of $219 per share.” — ▶ 08:00