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博通拆股效应:AI驱动的股价暴涨,还能持续多久?. 观点 | by BiyaPay | Jul, 2024

Broadcom’s (AVGO) AI-related revenue is expected to grow rapidly, reaching over a third of total revenue by the end of the 2024 fiscal year. This growth is attributed to the company’s strong influence in the AI field, with its stock price nearly tripling since January 2023. Despite a 9% premium in intrinsic value compared to market value, Broadcom’s potential for growth in AI revenue is seen as a compelling investment opportunity. The company’s diverse revenue sources, extensive intellectual property, and multi-billion-dollar investments in new technology contribute to its strong profitability and pricing power. Broadcom’s focus on AI solutions, particularly in data centers, is crucial for building high-performance computing systems. The company’s expansion into software and its high free cash flow profit margins set it apart from competitors. With the global AI market still expanding, Broadcom’s position as a key player in AI solutions makes it an attractive investment, especially considering the significant cash reserves and investments in data centers by tech giants like Microsoft, Google, Amazon, and Meta. The company’s historical revenue growth and potential in AI servers and IoT semiconductor products support a conservative 5% permanent growth rate in a discounted cash flow (DCF) valuation model, indicating an intrinsic value close to $800 billion and a 9% discount to the current market price. Despite risks related to competition, innovation, and potential impairment charges from acquisitions like VMware, Broadcom’s strong performance and focus on AI innovation make it a favorable investment choice.

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