AVGO Stock Analysis: Is Broadcom Still a Buy After New Highs?

AVGO stock analysis is front and center again as Broadcom trades near record highs in late November 2025, forcing investors to ask whether the AVGO stock forecast still supports new money or calls for caution.

Market Overview: AVGO Stock Today

Broadcom Inc. (AVGO) is trading around $385 on November 26, 2025, up roughly +1.9% on the day and sitting just below its 52-week high near $388. That puts Broadcom’s market cap above $1.8 trillion, cementing its status as one of the most valuable semiconductor and infrastructure software companies in the world.

How AVGO Has Performed vs. the Market

AVGO has dramatically outpaced the broader market over the past year. While the S&P 500 has posted solid double-digit gains, Broadcom has delivered a significantly stronger total return, driven by AI data center demand and software recurring revenue. For long-term holders, the stock’s relentless uptrend is the core of the bullish AVGO stock analysis narrative.

At the same time, the broader market sentiment is flashing caution. The CNN Fear & Greed Index is sitting in “extreme fear” territory near 16, highlighting that risk appetite is fragile even as mega-cap tech like AVGO pushes higher. That divergence makes entry timing more important for any new stock investment in Broadcom.

Fundamental Drivers: Why Bulls Still Like AVGO

AI, Networking, and Custom Silicon Tailwinds

The bullish AVGO stock forecast rests on Broadcom’s central role in AI infrastructure. The company supplies high-performance networking chips, custom accelerators, and switching solutions that sit at the heart of hyperscale data centers. As cloud providers ramp AI training and inference capacity, Broadcom is positioned to capture rising content per server and premium pricing.

Key bullish pillars include:

• Strong demand for AI networking and custom silicon from hyperscalers
• High-margin, recurring revenue from infrastructure software
• Scale advantages that support robust free cash flow and buybacks

These drivers support the view that Broadcom can sustain high revenue growth and margin resilience even if the broader semiconductor cycle cools.

VMware Integration and Software Recurring Revenue

Broadcom’s acquisition of VMware has shifted its mix further toward software and subscriptions. The integration strategy focuses on large enterprise and cloud customers, emphasizing higher-value bundles over low-margin, long-tail clients. While controversial, this pivot can lift margins and stabilize cash flows, a key plus for long-term stock prediction models.

For investors, the VMware deal strengthens the case that AVGO is no longer just a cyclical chip name. Instead, it is evolving into a diversified infrastructure platform with both hardware and software leverage, which can justify a premium multiple versus legacy semiconductor peers.

Valuation Check: Is AVGO Getting Too Expensive?

Multiples vs. Growth

The main bearish argument in any honest AVGO stock analysis is valuation. After a powerful multi-year run, Broadcom trades at a rich forward earnings and EV/EBITDA multiple relative to its own history and to many traditional chipmakers. The market is clearly pricing in sustained double-digit earnings growth, strong AI tailwinds, and flawless VMware execution.

If AI infrastructure spending or enterprise IT budgets slow, the current valuation leaves limited room for disappointment. That asymmetry is why some investors see AVGO as a “priced-for-perfection” stock investment at current levels.

Analyst Targets and Implied Upside

Wall Street remains broadly positive on AVGO, with most major firms maintaining Buy or Overweight ratings and price targets that still imply upside from current levels (Source: Bloomberg, FactSet). However, the gap between the stock price and the average target has narrowed as shares have surged toward record highs.

For traders, that shrinking upside suggests the risk/reward is less compelling for short-term stock prediction trades than it was earlier in the year. Long-term investors, however, may still accept a full valuation in exchange for Broadcom’s durable cash flows and AI optionality.

Technical Analysis: Trend, Support, and Risk Levels

Uptrend Intact, But Extended

On the chart, AVGO remains in a clear long-term uptrend, trading above key moving averages and making higher highs and higher lows. The recent push to a 52-week high around $388 confirms strong momentum, but it also signals that the stock is extended after a powerful rally.

Short-term traders will be watching for:

• Potential consolidation or pullback toward prior support zones
• Volume patterns around new highs
• Reaction to upcoming earnings and macro data

Key Levels to Watch

Near term, the prior breakout region and recent consolidation areas will act as support if the stock corrects. A decisive break below those levels could invite deeper profit-taking. On the upside, any sustained move above the recent high would reinforce the bullish AVGO stock forecast and could trigger another leg higher as momentum and trend-following strategies re-engage.

Bottom Line: Bullish, Bearish, or Neutral on AVGO?

Broadcom’s fundamentals, AI exposure, and software pivot keep the long-term AVGO stock analysis tilted bullish, but today’s rich valuation and fragile market sentiment argue for a tactically neutral stance in the short term. For patient investors, staged entries on pullbacks may offer a better risk/reward than chasing fresh highs, while existing holders can justify staying long as long as AI demand, VMware execution, and Broadcom’s cash generation remain intact.