Analyst Says Broadcom (AVGO) is ‘Too Expensive’ – ‘Don’t Think They’re Going to Take Over Nvidia’

[ad_1] We lately printed 10 Inventory Information You Ought to Pay Consideration To. Broadcom Inc. (NASDAQ:AVGO) is among the shares to observe in September.

Stephen Weiss, the Chief Funding Officer and Managing Companion of Quick Hills Capital Companions, mentioned in a latest program on CNBC that Broadcom is dear. Nonetheless, he believes it’s “different” for individuals in search of “much less superior” chips.

“I’m not fearful about Nvidia given its development price. Certain, it’s costly, however given its development price, the peg will not be overly out of sight. Broadcom, alternatively, I believe Broadcom is simply too costly, and I don’t suppose they’re going to take over Nvidia anytime quickly. However for much less superior chips that folks need, it’s different.”

For the fiscal fourth quarter, AVGO expects $6.2 billion in AI income, up 66% from a yr earlier. The corporate mentioned it secured $10 billion in AI infrastructure orders from a brand new buyer. Many analysts consider this buyer is OpenAI. Some media studies mentioned the 2 corporations co-designed a chip that will likely be launched subsequent yr.

Picture by Ruben Sukatendel on Unsplash

Renaissance Giant Cap Progress Technique said the next relating to Broadcom Inc. (NASDAQ:AVGO) in its second quarter 2025 investor letter:

“Broadcom Inc. (NASDAQ:AVGO) was the biggest contributor to our portfolio efficiency within the second quarter after reporting sturdy working outcomes and steering. The inventory benefited from continued make investments tor enthusiasm for prime development momentum shares, in addition to from corporations with publicity to synthetic intelligence. Importantly, Broadcom has been rising its hyperscale and connectivity product portfolios, leading to growing income publicity to quicker rising synthetic intelligence functions and offsetting a slowdown in its legacy semiconductor enterprise.”

Whereas we acknowledge the potential of AVGOas an funding, our conviction lies within the perception that some AI shares maintain higher promise for delivering larger returns and have restricted draw back danger. If you're in search of a particularly low-cost AI inventory that can be a serious beneficiary of Trump tariffs and onshoring, see our free report on one of the best short-term AI inventory.