The AI Trade Lives! Broadcom Q4 FY10/25 Earnings Review
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Just Climbing The Stairs
Alex King, CEO, Cestrian Capital Research, Inc.
Here’s the Broadcom stock chart, inclusive of the dump on Friday following earnings printed Thursday after the close. You can open a full page version, here.
The chart looks bullish to me - it’s making a higher low since that Wave 4 low, and it looks on track to climb to somewhere between $450-525 before a material correction.
Don’t let anyone tell you the earnings were poor. The earnings weren’t poor.
Net leverage is down from 2.0x TTM EBITDA as recently as 31 October last year to 1.2x TTM EBITDA today. Leveraged buyout firms dream of deleverage that fast. Revenue growth accelerated for the last two quarters, and cashflow margins have been climbing for four successive quarters.
Valuation? Similar cashflow multiples to NVDA, but AVGO is gaining share in AI and its revenue growth rate is climbing; NVDA can only lose share, and its revenue growth is declining. So I think that even though AVGO isn’t the King, yet, its valuation can be defended vs. NVDA.
Rating: Hold.
Cestrian Capital Research, Inc - 14 Dec 2025
Appendix - Full Financials
