Broadcom stock price is hovering near its all-time high as its march towards the $1 trillion market cap intensified. AVGO was trading at $180, a few points below the all-time high of $186. It has rallied by almost 1,200% from its lowest level in 2020. Broadcom business is growingBroadcom is a giant technology company that provides a wide variety of services mostly to companies like Apple and Samsung. Its products include the likes of storage adapters, controllers, FBAR filters, wireless LAN, wireless LAN infrastructure, ethernet switches, and custom silicon. The company has also expanded its solutions through acquisitions over the years. It has become a major a major player in the cybersecurity industry through its $10.7 billion buyout of Symantec.It also bought VMware, a company that provides key solutions in the cloud computing industry. It is also a big player in enterprise software, where it provides solutions like automation, continuous delivery, network observability, and, API security.Broadcom’s business has done well in the past few years as its annual revenue has jumped from over $22.5 billion in 2019 to over $45.8 billion in the trailing twelve months. Most of this revenue growth has been because of a combination of organic performance and acquisitions. AVGO earnings aheadThe next important catalyst for the Broadcom stock price will be its earnings, which are expected to come in on Thursday this week.The most recent results showed that Broadcom’s revenue rose by 47% in the third quarter to $13 billion. Most of this growth was because the revenue included the VMware business, which was not there in the same period last year. Excluding VMware, Broadcom’s revenue was up by about 4%.Most of the revenue of about $7.2 billion was from its semiconductor solutions. It was followed by its infrastructure software, which brought in over $5.7 billion during the quarter.Broadcom’s business has done well because of the ongoing demand for artificial intelligence solutions around the world. Indeed, the management believes that its AI revenue will total about $12 billion in the current fiscal quarter, helped by AI data centers and ethernet networking.Analysts expect that Broadcom’s revenue will be $14.07 billion, a 51% increase from what it made last year. Its guidance for the next quarterly revenue will be $14.59 billion, a 21% YoY increase. Most importantly, Broadcom will move back to profitability. Its quarterly earnings per share is expected to be $1.39, an increase from the previous $1.11. Also, its annual EPS will be $4.85 followed by $6.19. There are odds that Broadcom’s business will do better than expected because it has a long record of beating analyst estimates. Broadcom stock has also done well over the years because of its strong dividend payouts. It has boosted its dividends for 13 consecutive years and has a low payout ratio of 46%.A key concern among analysts is that Broadcom stock is a bit overvalued. It has a forward P/E ratio of 37, higher than many tech companies. Still, the AVGO stock price may continue doing well as long as it demonstrates strong revenue growth.More By This Author:Oil Prices Rise Amid Middle East Tensions, But Weak Demand Caps Gains EUR/USD Forecast Ahead Of ECB Decision And U.S. Inflation Data With Bitcoin Breaching The $100,000 Mark, What Else Could Be In Store For Crypto Under Trump?
