As AI Semiconductor Revenue Swells, AVGO Stock is Destined to Trend Higher

With AI semiconductor revenue as the driving factor, Broadcom (AVGO) stock has trended higher by 56% in the last 52 weeks. The rally has been supported by robust top-line growth and upside in cash flows.

Yesterday, Broadcom reported Q2 results, and the company delivered revenue and earnings beats. Q2 revenue increased by 48% on a year-on-year (YoY) basis to $22.2 billion. For the same period, adjusted EBITDA margin was robust at 69%, and the company reported healthy free cash flows of $10.3 billion.