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Benzinga
Benzinga
Business
Josh Enomoto

Options Corner: The AI Hangover Presents A Contrarian Opportunity In Broadcom Stock

Sunnyvale,,Ca - usa,-,March,1,,2014:,Broadcom,Facility,In,Silicon

If there ever were to be a fourth "Hangover" film — spoiler alert: there won't be — it may be centered on the current artificial intelligence ecosystem. With multiple experts sounding the alarm about a potential correction (or even an outright crash), entities like semiconductor and software giant Broadcom Inc (NASDAQ:AVGO) face a massive question mark.

Much of the anxiety has to do with the sheer performance of AVGO stock. Since the start of the year, the security gained about 48%. In the trailing 52 weeks, it has more than doubled in value. In tech terms, these stats aren't exactly mind-blowing. However, Broadcom now commands a market capitalization of approximately $1.62 trillion. That's about the size of Spain's GDP, which ranks 15th in the world.

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