AVGOBullpending
Meet KevinTarget Price
$1,000
“I've got this at almost $1,000 because of the margins they have. They have Nvidia like freaking margins.”
Thesis at the time
BullishKevin views Broadcom as fundamentally strong but temporarily punished for a small Q4 revenue guidance miss, noting exceptional margins, huge free cash flow, and a cheap valuation relative to growth. He believes the stock could be worth close to $1,000 based on its margin profile, though he flags the large debt load as a lingering concern.
Key arguments
- Revenue accelerated 85% year-over-year and 33% sequentially, an acceleration in growth rate
- Net margins near 55% with $13.6 billion free cash flow in a single quarter
- Trading at roughly a 0.9 PEG ratio versus ~34% four-year growth, which he calls 'cheap cheap for these margins'
- Company has stopped taking on new debt and is now paying it down
Counter-arguments acknowledged
- Second consecutive quarter of missed revenue guidance
- $57 billion in long-term debt is 'the one thing that stops me from wanting to buy this company'
- Weaker pricing power as cost of revenue grew faster than revenue
Hedges and caveats (from the video)
- Host acknowledges losing money on recent trades
- HPE and Five Below earnings described as 'not the biggest thing' of focus
- Market volatility and dip-buying sentiment suggests uncertain near-term conditions
- Data from Mercury report on early-stage companies may not represent broader market
The call
- Date said
- Sep 2, 2026
- Price at prediction
- $369.68
- Current price (live)
- $364.54$635.46 below target
- Confidence
- medium
- Specificity
- specific
How it resolved
- Status
- pending
Confidence Reasoning
Specific price target given with conviction language ('almost $1,000') and reasoning tied to margins, but no explicit timeframe was stated.
Source
AI Stocks: Broadcom, Snowflake, HPE Earnings
Said on Sep 2, 2026Open on YouTube ↗