Data centers remain a good place to be, and with the iPhone cycle about to ramp up, handsets will once again be a growth driver for companies with good exposure to Apple (AAPL). That’s all good news for Broadcom (AVGO), and with stronger guidance for revenue (including a 10% qoq growth rate that’s better than most peers) and good execution on margins, the shares have finally started performing … seemingly just as investors want to flee tech stocks.
It seems pretty much par for the course that Broadcom finally shows up to the party just as the guests are leaving; for some time now, I’ve thought that the shares have been overlooked and undervalued, with investors more interested in more growth-oriented names, and particularly those with less controversial strategies (mostly referring to Broadcom’s foray into enterprise software). In any event, I continue to see Broadcom as a well-placed tech company with total annualized return potential in the high single-digits to low double-digits.
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Data Don't Lie, And Broadcom Still Looks Undervalued On Strong Data Growth Opportunities
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