What we think about Broadcom (AVGO)
Broadcom in Three Words: Global Diversified Chipmaker
What Investors Should Know
Jan 23, 2026: Broadcom's broad-based IP portfolio, massive R&D spend, and entrenched relationships with key customers lead me to believe it will be one of the best-positioned chipmakers to benefit from America's aggressive buildout of AI datacenters.
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Recent Media
Broadcom was one of the two stocks of focus on 7investing Live on January 23, 2026.
Background
Broadcom initially joined the 7investing Watch List of New Ideas in January 2026.
Broadcom is one of the world's largest and most diversified chipmakers, generating more than $60 billion in revenue from more than 10,000 customers.
Broadcom's CEO Hock Tan has spent the past two decades aggressively making acquisitions and ruthlessly prioritizing operational efficiency. That has typically meant trimming overhead costs to make less-profitable firms more profitable, then using the resulting cash flows for dividends and buybacks. During the past decade, Broadcom has generated a 3,200% return for investors -- 10x that of the S&P 500 during the same timeframe.
Broadcom's shares have cooled a bit in 2026, possibly due to its slightly-lower margins on AI chips or the rising risk profile of its China-based revenues. There's a bit more digging required into those details, but this could turn out to be an excellent "buy the dip" investing opportunity.