Broadcom Stock Has Jumped Just 7% in 2026. This Move by Meta Platforms Could Supercharge the Stock in the Second Half
Meta Platforms' deployment of an in-house chip this September can supercharge Broadcom's growth.
Overview
With gains of just 7% so far this year, Broadcom (NASDAQ: AVGO) stock has been underperforming the broader semiconductor sector in 2026. The PHLX Semiconductor Sector, for comparison, has jumped 58% this year.
The stock's expensive valuation explains Broadcom's underperformance. After all, it is trading at 62 times trailing earnings. Of course, Broadcom delivered an impressive 54% year-over-year increase in its earnings per share in the second quarter of fiscal 2026 (which ended May 3). However, there are companies with much faster earnings growth trading at lower multiples.
Details
So, Broadcom needs to deliver significant acceleration in earnings growth to give its stock a shot in the arm. The good news for investors is that the next big catalyst for Broadcom stock could arrive soon, courtesy of Meta Platforms (NASDAQ: META).
Source
Originally published at www.fool.com.