STRONG BULLISH | Ticker: AVGO (Broadcom Inc.) | Timeframe: Daily/Weekly
AVGO is demonstrating a powerful and sustained uptrend, and the recent Q3 FY25 earnings report provides fundamental confirmation that this momentum is well-supported.
📈 Technical Perspective:
The stock is in a clear ascending channel, consistently making higher highs and higher lows.
It is trading decisively above key moving averages (e.g., 66-day and 198-day EMA), indicating strong bullish sentiment.
Each pullback has been bought aggressively, showing strong institutional support.
✅ Fundamental Catalyst (Q3 FY25 Earnings):
The latest earnings report acts as a powerful catalyst confirming the strength of this trend:
Explosive Revenue Growth: Posted revenue of $15.95B, a massive 22% YoY increase. This isn't just growth; it's accelerating growth.
Exceptional Profitability: Operating income surged 55% YoY to $5.89B, highlighting incredible operational leverage and margin expansion.
AI is the Driver: The Semiconductor Solutions segment ($9.17B) is fueled by insatiable demand for custom AI accelerators and networking chips. This is a long-term, structural growth story, not a short-term hype cycle.
Software Transformation: The Infrastructure Software segment ($6.79B) is successfully transitioning to a high-margin subscription model, creating a predictable and recurring revenue stream.
Shareholder-Friendly: The company returned $2.8B in dividends and is actively buying back stock ($2.45B this quarter), showcasing a strong commitment to capital return.
🎯 Conclusion:
The technical breakout is being validated by exceptional underlying fundamentals. The combination of leadership in AI semiconductors, a sticky software business, and superior capital allocation makes AVGO a premium asset. The trend is your friend, and the fundamental story confirms this friend has a very strong foundation.
AVGO is demonstrating a powerful and sustained uptrend, and the recent Q3 FY25 earnings report provides fundamental confirmation that this momentum is well-supported.📈 Technical Perspective:
The stock is in a clear ascending channel, consistently making higher highs and higher lows.
It is trading decisively above key moving averages (e.g., 66-day and 198-day EMA), indicating strong bullish sentiment.
Each pullback has been bought aggressively, showing strong institutional support.
✅ Fundamental Catalyst (Q3 FY25 Earnings):
The latest earnings report acts as a powerful catalyst confirming the strength of this trend:
Explosive Revenue Growth: Posted revenue of $15.95B, a massive 22% YoY increase. This isn't just growth; it's accelerating growth.
Exceptional Profitability: Operating income surged 55% YoY to $5.89B, highlighting incredible operational leverage and margin expansion.
AI is the Driver: The Semiconductor Solutions segment ($9.17B) is fueled by insatiable demand for custom AI accelerators and networking chips. This is a long-term, structural growth story, not a short-term hype cycle.
Software Transformation: The Infrastructure Software segment ($6.79B) is successfully transitioning to a high-margin subscription model, creating a predictable and recurring revenue stream.
Shareholder-Friendly: The company returned $2.8B in dividends and is actively buying back stock ($2.45B this quarter), showcasing a strong commitment to capital return.
🎯 Conclusion:
The technical breakout is being validated by exceptional underlying fundamentals. The combination of leadership in AI semiconductors, a sticky software business, and superior capital allocation makes AVGO a premium asset. The trend is your friend, and the fundamental story confirms this friend has a very strong foundation.
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Aviso legal
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