Broadcom Inc. (AVGO): A Bull Case Theory

We came across a bullish thesis on Broadcom Inc. on X.com by Wiseman_Cap. In this article, we will summarize the bulls’ thesis on AVGO. Broadcom Inc.'s share was trading at $359.63 as of September 11th. AVGO’s trailing and forward P/E were 92.21 and 39.53 respectively according to Yahoo Finance.

Broadcom’s Ethernet products, which are increasingly used to scale both up and out connectivity. Scale-up unit volumes are currently five to ten times higher than scale-out, reflecting the higher demand for larger, more concentrated deployments. These Ethernet solutions support a broad range of AI workloads, including both large language model training and inference, positioning Broadcom at the forefront of AI infrastructure.

Beyond the existing three hyperscale customers ramping production, management also highlighted interest from four additional XPU prospects, signaling a strong pipeline for future growth. Broadcom’s ability to deliver highly customized ASIC solutions remains a core competitive advantage, enabling it to meet the specialized requirements of AI and high-performance computing clients. The combination of accelerating AI adoption, strong customer traction, and differentiated product capabilities provides a compelling investment case.

Rosenblatt recently raised its price target to $340, reflecting confidence in Broadcom’s ongoing growth and strategic positioning. With multiple growth levers in place—from AI-specific revenue to scale-up Ethernet adoption—the company is well-positioned to sustain long-term expansion while maintaining strong margins, making AVGO a highly attractive stock for investors focused on AI infrastructure and semiconductors.

Previously we covered a bullish thesis on Broadcom Inc. (AVGO) by Daan Rijnberk in March 2025, which highlighted AI-driven revenue growth, hyperscaler demand, VMware integration, and record free cash flow. The company's stock price has appreciated approximately 84% since our coverage. The thesis still stands as Broadcom continues to lead in AI infrastructure. Wiseman_Cap shares a similar view but emphasizes Ethernet scale-up adoption and a growing XPU pipeline.

Broadcom Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 158 hedge fund portfolios held AVGO at the end of the first quarter which was 161 in the previous quarter. While we acknowledge the potential of AVGO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.