Broadcom (AVGO, $544.72) tops Q4 earnings expectations
Broadcom posted fourth quarter earnings that handily topped the Street expectations. The chipmaker also indicated that it will maintain its current dividend strategy.
Adjusted earnings came in at $10.45 per share, well above analysts’ forecast of 17 cents. Revenues climbed +21% year-over-year to $8.93 billion. The company’s broadband revenues were up +20% while wireless revenues grew +13%.
Looking ahead, Broadcom expects adjusted earnings of around $5.94 per share for the current quarter, and predicts revenues to be $8.9 billion (i.e. flattish vs. the prior period).
Broadcom announced that it will maintain its current dividend policy of paying out 50% of its prior-year free cash flow to shareholders, even amidst Broadcom's assumption of around $8 billion in VMware debt (following the chipmaker’s acquisition of the latter. Broadcom shareholders will own around 88% of the company upon the deal’s completion, with VMware holding the remaining 12%).
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
AVGO's RSI Indicator climbs out of oversold territory
The RSI Oscillator for AVGO moved out of oversold territory on September 17, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 12 similar instances when the indicator left oversold territory. In 10 of the 12 cases the stock moved higher. This puts the odds of a move higher at 83%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 06, 2026. You may want to consider a long position or call options on AVGO as a result. In 71 of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 83%.
The Moving Average Convergence Divergence (MACD) for AVGO just turned positive on September 21, 2026. Looking at past instances where AVGO's MACD turned positive, the stock continued to rise in 44 of 55 cases over the following month. The odds of a continued upward trend are 80%.
Following a +3.86% 3-day Advance, the price is estimated to grow further. Considering data from situations where AVGO advanced for three days, in 271 of 343 cases, the price rose further within the following month. The odds of a continued upward trend are 79%.
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
AVGO moved below its 50-day moving average on October 08, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AVGO declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 61%.
AVGO broke above its upper Bollinger Band on October 06, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for AVGO entered a downward trend on September 25, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 15 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 72, placing this stock better than average.
The Tickeron SMR rating for this company is 23 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 46 (best 1 - 100 worst), indicating fairly steady price growth. AVGO’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 71 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: AVGO's P/B Ratio (16.750) is slightly higher than the industry average of (7.975). P/E Ratio (44.588) is within average values for comparable stocks, (165.532). Projected Growth (PEG Ratio) (0.346) is also within normal values, averaging (3.761). Dividend Yield (0.007) settles around the average of (0.007) among similar stocks. P/S Ratio (18.622) is also within normal values, averaging (45.794).
The Tickeron PE Growth Rating for this company is 89 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a manufacturer of digital and analog semiconductor products
Industry Semiconductors
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