1 Green Flag for Broadcom in 2023, and 1 Red Flag
Broadcom's (NASDAQ: AVGO) stock is up about 30% over the past 12 months, bucking the broader slowdown in the semiconductor market. It outperformed most of its peers because its deep diversification across the data center, networking, wireless, storage, and industrial chip markets insulated it from the post-pandemic slowdown of the PC and smartphone markets. It also diversified its business away from semiconductors with the expansion of its infrastructure software business.
Between fiscal 2017 and fiscal 2022 (which ended last October), Broadcom's revenue had a compound annual growth rate (CAGR) of 13%, while its adjusted EPS rose at a CAGR of 19%. Analysts expect its revenue and adjusted EPS to rise 7% and 10%, respectively, this year, even as the macroeconomic headwinds rattle the broader markets.
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Source Fool.com
