Fantastic News for Broadcom Stock Investors
The recent dip is a buying opportunity.
Overview
Broadcom (NASDAQ:AVGO) started the year on a strong note, with its shares rising significantly through the first six months of 2026 and reaching a 52-week high of $495. However, the semiconductor stock has dropped 27% from those levels and is up just 4% year to date, well below the S&P 500's 11% gains. Despite appearances, Broadcom has a lot going for it, and the company's most recent update suggests the market may be underestimating its prospects, making it a particularly attractive stock at current levels.
Image source: The Motley Fool.
On Sept. 2, Broadcom released its financial results for the third quarter of its fiscal year 2026, which ended Aug. 2. The company performed well. Its revenue increased by 86% year over year to $29.6 billion. Broadcom's adjusted operating income soared by 92% year over year to $20.1 billion, while its adjusted earnings per share (EPS) were $3.32, up 96% compared to the year-ago period. Broadcom's revenue is growing faster than its expenses, a great sign for the business. Further, the company's free cash flow at the end of the period was $13.7 billion, up 95% year over year. Broadcom's artificial intelligence (AI) chip business is growing even faster.
Details
Source
Originally published at www.fool.com.