The Pros And Cons Of Investing In Broadcom In 2023

Jan. 23, 2023 6:00 AM ETBroadcom Inc. (AVGO)SMH5 Comments
Bela Lakos profile picture
Bela Lakos


  • Safe and sustainable dividend payments, which the firm has managed to increase in each year in the past 11 years.
  • Strong liquidity position indicated by the current- and quick ratios.
  • Attractive valuation based on the traditional price multiples.
  • Cons could be the rapidly rising inventory levels coupled with the potentially depressed demand for AVGO's products in the near term.
  • We believe that the pros outweigh the cons at the current price levels. For this reason we rate the stock as "buy".
Broadcom headquarters in Silicon Valley

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Broadcom Inc. (NASDAQ:AVGO) designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. While the broader semiconductor industry (SMH

This article was written by

Bela Lakos profile picture
Petroleum engineer with an enthusiasm for investing, accounting and personal finances.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Past performance is not an indicator of future performance. This post is illustrative and educational and is not a specific offer of products or services or financial advice. Information in this article is not an offer to buy or sell, or a solicitation of any offer to buy or sell the securities mentioned herein. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. Expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. This article has been co-authored by Mark Lakos.

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