Why I Can’t Stop Buying Broadcom Stock

Broadcom (NASDAQ:AVGO) continues to pull semipermanent capitalist interest, and aft reviewing the information 4th aft quarter, the lawsuit for accumulation keeps getting stronger. This is simply a presumption built connected 3 specific, compounding reasons that support improving.

Long-term investors privation to beryllium paid portion they wait. Broadcom has raised its dividend for 15 consecutive years since fiscal 2011. The astir caller summation was a 10% rise to $0.65 per stock quarterly, declared successful December 2025 and paid connected March 31, 2026. That is not a token gesture.

A institution that raises its dividend each azygous twelvemonth done economical cycles, a monolithic acquisition, and a semiconductor downturn is telling you thing existent astir its assurance successful currency generation. That consistency earns a imperishable slot successful a semipermanent portfolio.

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The maturation trajectory present is dissimilar thing other successful the sector. AI semiconductor gross went from $4.40 cardinal successful Q2 FY2025 (46% YoY) to $5.20 cardinal successful Q3 FY2025 (63% YoY) to AI gross increasing 74% YoY successful Q4 FY2025, and past to $8.40 cardinal successful Q1 FY2026, up 106% year-over-year and supra the company's ain forecast.

The acceleration is not slowing. Management guided for $10.7 cardinal successful AI semiconductor gross for Q2 FY2026. CEO Hock Tan has acceptable a extremity to transcend $100 cardinal successful AI income by 2027. That is simply a consecutive enactment from wherever the numbers already are.

Custom AI accelerators and Ethernet AI switches for hyperscale information centers are not commodity products. They are sticky, differentiated, and successful escalating request from customers that are spending aggressively connected infrastructure.

Broadcom's maturation is backed by important currency generation. Broadcom generates existent currency astatine a standard that funds dividends, buybacks, and equilibrium expanse betterment simultaneously. In Q1 FY2026, escaped currency travel deed $8.01 billion, representing 41% of revenue.

For afloat fiscal twelvemonth 2025, escaped currency travel reached $26.91 billion, up 38.6% year-over-year. Adjusted EBITDA margins person held astatine 68% of gross adjacent arsenic the apical enactment accelerates.