Broadcom is rated a strong buy, with a post-earnings selloff presenting a solid price point for bulls given its AI infrastructure leadership and robust forward pipeline. AVGO's business model transformation—anchored by XPV financing, custom silicon, and open Ethernet networking—positions it to outpace semiconductor cyclicality and capture $230B AI revenue by FY2028. Operating leverage is expanding despite gross margin compression, with Q3 operating margin at 67.9% and guidance to remain at or above 66%, driven by controlled OpEx and accelerating AI deployments.
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