Broadcom $AVGO Q1 FY10/26 Earnings Review - NO PAYWALL
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Try To Be More Like Charlie Munger, And Less Like Chad.
by Alex King, CEO, Cestrian Capital Research, Inc.
You can read everywhere on the Internet all the intricacies of the Broadcom ( $AVGO ) earnings print today. Semiconductor substrate fiends, earnings-per-share wonks, and body language bros, have at it, knock yourselves out.
We have a very simple take on the print.
Numbers: good. Revenue growth accelerated a little, cashflow margins ticked up, net debt rose but net leverage is down.
Valuation: fine as long as the growth keeps going, because there ain’t no margin improvement coming to save you if it falters.
Stock chart: in a superb risk/reward position for a long trade. The stock is sat right at the 200-day simple moving average. That means you can buy around here, with a stop a little below the 200-day, or, to give yourself more slack, a stop below the recent lows, meaning the upside opportunity (to new ATHs which would be +30% ) vs the downside opportunity (say -10% to a sensible sell-stop-limit order) is 3:1, not so shabby.
We rate $AVGO at Hold on a longer term basis - we rated it at Accumulate way down in the $41-65 range back in 2022-23, so, up 5-7x since then if you were paying attention - but as I say, for a short term trade this is a great place to enter in my view - assuming you place your stops accordingly.
Alright that’s it. As always our earnings notes are short, sweet and to the point. Behind these notes lies decades of experience in semiconductor and securities analysis and whatnot, but we don’t see the point in ruining your day by talking about all that stuff. Want to talk about it, get in our Inner Circle chat.
Numbers
Valuation
Chart
Price target, $434-514/share. Full page chart, here.
Rating
See above.
Cestrian Capital Research, Inc - 4 March 2026
DISCLOSURE: I am long $AVGO personally.