Jeremy Grantham's Current Value Picks: Stocks and Sectors to Watch for 2026 from the 'Permabear' Investor
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 31 2025
0mins
Should l Buy AVGO?
Source: Barron's
Background: Jeremy Grantham, an experienced investor, was born during the Great Depression and has navigated various economic cycles throughout his career.
Upcoming Publication: His memoir, titled The Making of a Permabear, is set to be published by Grove Press on January 13.
Investment Philosophy: Grantham emphasizes the concept of mean reversion as a key principle in his investment strategy.
Personal Reflection: He shares his experiences in the investment world with a blend of humor and humility.
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Analyst Views on AVGO
Wall Street analysts forecast AVGO stock price to rise
30 Analyst Rating
29 Buy
1 Hold
0 Sell
Strong Buy
Current: 313.840
Low
370.00
Averages
457.75
High
525.00
Current: 313.840
Low
370.00
Averages
457.75
High
525.00
About AVGO
Broadcom Inc. is a global technology firm that designs, develops, and supplies a range of semiconductors, enterprise software and security solutions. The Company operates through two segments: semiconductor solutions and infrastructure software. Its semiconductor solutions segment includes all of its product lines and intellectual property (IP) licensing. It provides a variety of radio frequency semiconductor devices, wireless connectivity solutions, custom touch controllers, and inductive charging solutions for mobile applications. Its infrastructure software segment includes its private and hybrid cloud, application development and delivery, software-defined edge, application networking and security, mainframe, distributed and cybersecurity solutions, and its FC SAN business. It provides a portfolio of software solutions that enable customers to plan, develop, automate, manage and secure applications across mainframe, distributed, mobile and cloud platforms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Broadcom Q1 Earnings Beat Expectations with $10B Buyback Announcement
- Earnings Beat: Broadcom reported a non-GAAP EPS of $2.05 for Q1, exceeding Wall Street's expectations by $0.03, indicating strong performance in the tech sector that is likely to positively impact stock prices.
- Revenue Growth: The company achieved Q1 revenue of $19.31 billion, surpassing forecasts by $170 million, demonstrating significant growth amid recovering market demand, which enhances investor confidence.
- Buyback Announcement: Broadcom unveiled a $10 billion stock buyback plan, reflecting the company's confidence in its intrinsic value and potentially boosting EPS, which may attract more investor interest.
- Market Reaction: Following the earnings release, Broadcom's stock ticked up slightly, with the market maintaining an optimistic outlook on its future performance, anticipating that tech rotation could further drive stock price increases and strengthen the company's competitive position.
See More
Broadcom Q1 Earnings Beat Expectations with Strong Revenue Growth
- Earnings Beat: Broadcom reported a Q1 non-GAAP EPS of $2.05, exceeding expectations by $0.03, which underscores the company's robust performance and strengthens its leadership position in the semiconductor industry.
- Significant Revenue Growth: The company achieved Q1 revenue of $19.31 billion, reflecting a 29.4% year-over-year increase and surpassing market expectations by $170 million, indicating strong demand across its business segments and an increase in market share.
- Optimistic Outlook: Based on current business trends, Broadcom anticipates Q2 fiscal year 2026 revenue to be approximately $22.0 billion, exceeding the consensus estimate of $20.40 billion, demonstrating confidence in future growth.
- Adjusted EBITDA Guidance: The guidance for Q2 adjusted EBITDA is expected to be around 68% of projected revenue, highlighting effective strategies in cost control and profitability enhancement, despite a 2.3% decline in share price.
See More
Broadcom Reports Strong Q1 Earnings and Guidance Exceeding Expectations
- Strong Performance: Broadcom reported adjusted earnings of $2.05 per share for the fiscal quarter ending February 1, with revenue rising 29% year-over-year to $19.31 billion, surpassing analysts' expectations of $19.26 billion, indicating robust performance in both semiconductor and software sectors.
- Surge in Semiconductor Revenue: The semiconductor segment contributed $12.52 billion to total revenue, reflecting a 52% year-over-year increase, while infrastructure revenue grew modestly by 1% to $6.8 billion, showcasing Broadcom's sustained demand in AI semiconductor solutions.
- AI Revenue Growth: Broadcom's AI revenue reached $8.4 billion in Q1, marking a 106% year-over-year increase and exceeding forecasts, with expectations for AI semiconductor revenue to hit $10.7 billion in Q2, highlighting strong market demand for custom AI accelerators and networking solutions.
- Shareholder Return Initiatives: The board approved a quarterly dividend of $0.65 per share and announced a $10 billion share buyback program, aimed at enhancing shareholder value and boosting market confidence in the company's growth trajectory.
See More
Broadcom Q1 Earnings Beat Expectations with Strong AI Growth
- Significant Revenue Growth: Broadcom reported Q1 revenue of $19.31 billion, a 29% year-over-year increase that surpassed Wall Street's expectation of $19.13 billion, demonstrating the company's strong market performance and growth potential.
- Earnings Per Share Beat: The company posted a diluted earnings per share of $2.05, slightly above analysts' estimate of $2.02, reflecting ongoing improvements in profitability and boosting investor confidence.
- Strong AI Business: Q1 AI revenue reached $8.4 billion, growing 106% year-over-year and exceeding forecasts, indicating robust demand for custom AI accelerators and AI networking, further solidifying the company's market leadership.
- Optimistic Future Outlook: Broadcom provided a revenue guidance of approximately $22 billion for Q2, ahead of market expectations of $20.39 billion, showcasing confidence in future growth, particularly driven by sustained demand in the AI semiconductor sector.
See More
Broadcom Q1 Earnings Exceed Expectations
- Strong Earnings Report: Broadcom reported first-quarter revenue of $19.31 billion, surpassing analyst expectations of $19.20 billion, indicating robust performance in the semiconductor market, particularly in AI solutions.
- Surge in AI Revenue: The company achieved $8.4 billion in AI revenue for Q1, a remarkable 106% year-over-year increase, exceeding forecasts and reflecting strong demand for custom AI accelerators and networking, with expectations of $10.7 billion in Q2 AI semiconductor revenue.
- Robust Cash Flow: Broadcom generated approximately $8.26 billion in cash from operations and $8.01 billion in free cash flow during the quarter, showcasing strong financial health that supports future investments and shareholder returns.
- Dividend Distribution: The board approved a quarterly cash dividend of $0.65 per share, payable on March 31 to shareholders of record as of March 23, further enhancing investor confidence and demonstrating the company's commitment to its shareholders.
See More
Broadcom Reports Record Q1 Revenue Driven by AI Solutions
- AI Revenue Surge: Broadcom's Q1 AI revenue reached $8.4 billion, growing 106% year-over-year and exceeding forecasts, indicating robust demand for custom AI accelerators and networking, thereby solidifying the company's leadership in the rapidly expanding AI semiconductor market.
- Record Overall Revenue: The total revenue for Q1 was $19.31 billion, a 29% year-over-year increase, with adjusted EBITDA hitting $13.13 billion, representing 68% of revenue, reflecting the company's strong profitability in a high-demand environment.
- Shareholder Return Strategy: Broadcom returned $10.9 billion to shareholders in Q1 through $3.1 billion in cash dividends and $7.8 billion in stock repurchases, demonstrating the company's ongoing commitment to shareholder value.
- Optimistic Q2 Outlook: The company expects Q2 revenue to grow by 47% to $22 billion, with adjusted EBITDA remaining at 68%, indicating confidence in future growth and continued investment in the AI market.
See More
Broadcom Q1 Earnings Beat Expectations with $10B Buyback Announcement
- Earnings Beat: Broadcom reported a non-GAAP EPS of $2.05 for Q1, exceeding Wall Street's expectations by $0.03, indicating strong performance in the tech sector that is likely to positively impact stock prices.
- Revenue Growth: The company achieved Q1 revenue of $19.31 billion, surpassing forecasts by $170 million, demonstrating significant growth amid recovering market demand, which enhances investor confidence.
- Buyback Announcement: Broadcom unveiled a $10 billion stock buyback plan, reflecting the company's confidence in its intrinsic value and potentially boosting EPS, which may attract more investor interest.
- Market Reaction: Following the earnings release, Broadcom's stock ticked up slightly, with the market maintaining an optimistic outlook on its future performance, anticipating that tech rotation could further drive stock price increases and strengthen the company's competitive position.
See More
Broadcom Q1 Earnings Beat Expectations with Strong Revenue Growth
- Earnings Beat: Broadcom reported a Q1 non-GAAP EPS of $2.05, exceeding expectations by $0.03, which underscores the company's robust performance and strengthens its leadership position in the semiconductor industry.
- Significant Revenue Growth: The company achieved Q1 revenue of $19.31 billion, reflecting a 29.4% year-over-year increase and surpassing market expectations by $170 million, indicating strong demand across its business segments and an increase in market share.
- Optimistic Outlook: Based on current business trends, Broadcom anticipates Q2 fiscal year 2026 revenue to be approximately $22.0 billion, exceeding the consensus estimate of $20.40 billion, demonstrating confidence in future growth.
- Adjusted EBITDA Guidance: The guidance for Q2 adjusted EBITDA is expected to be around 68% of projected revenue, highlighting effective strategies in cost control and profitability enhancement, despite a 2.3% decline in share price.
See More
Broadcom Reports Strong Q1 Earnings and Guidance Exceeding Expectations
- Strong Performance: Broadcom reported adjusted earnings of $2.05 per share for the fiscal quarter ending February 1, with revenue rising 29% year-over-year to $19.31 billion, surpassing analysts' expectations of $19.26 billion, indicating robust performance in both semiconductor and software sectors.
- Surge in Semiconductor Revenue: The semiconductor segment contributed $12.52 billion to total revenue, reflecting a 52% year-over-year increase, while infrastructure revenue grew modestly by 1% to $6.8 billion, showcasing Broadcom's sustained demand in AI semiconductor solutions.
- AI Revenue Growth: Broadcom's AI revenue reached $8.4 billion in Q1, marking a 106% year-over-year increase and exceeding forecasts, with expectations for AI semiconductor revenue to hit $10.7 billion in Q2, highlighting strong market demand for custom AI accelerators and networking solutions.
- Shareholder Return Initiatives: The board approved a quarterly dividend of $0.65 per share and announced a $10 billion share buyback program, aimed at enhancing shareholder value and boosting market confidence in the company's growth trajectory.
See More
Broadcom Q1 Earnings Beat Expectations with Strong AI Growth
- Significant Revenue Growth: Broadcom reported Q1 revenue of $19.31 billion, a 29% year-over-year increase that surpassed Wall Street's expectation of $19.13 billion, demonstrating the company's strong market performance and growth potential.
- Earnings Per Share Beat: The company posted a diluted earnings per share of $2.05, slightly above analysts' estimate of $2.02, reflecting ongoing improvements in profitability and boosting investor confidence.
- Strong AI Business: Q1 AI revenue reached $8.4 billion, growing 106% year-over-year and exceeding forecasts, indicating robust demand for custom AI accelerators and AI networking, further solidifying the company's market leadership.
- Optimistic Future Outlook: Broadcom provided a revenue guidance of approximately $22 billion for Q2, ahead of market expectations of $20.39 billion, showcasing confidence in future growth, particularly driven by sustained demand in the AI semiconductor sector.
See More
Broadcom Q1 Earnings Exceed Expectations
- Strong Earnings Report: Broadcom reported first-quarter revenue of $19.31 billion, surpassing analyst expectations of $19.20 billion, indicating robust performance in the semiconductor market, particularly in AI solutions.
- Surge in AI Revenue: The company achieved $8.4 billion in AI revenue for Q1, a remarkable 106% year-over-year increase, exceeding forecasts and reflecting strong demand for custom AI accelerators and networking, with expectations of $10.7 billion in Q2 AI semiconductor revenue.
- Robust Cash Flow: Broadcom generated approximately $8.26 billion in cash from operations and $8.01 billion in free cash flow during the quarter, showcasing strong financial health that supports future investments and shareholder returns.
- Dividend Distribution: The board approved a quarterly cash dividend of $0.65 per share, payable on March 31 to shareholders of record as of March 23, further enhancing investor confidence and demonstrating the company's commitment to its shareholders.
See More
Broadcom Reports Record Q1 Revenue Driven by AI Solutions
- AI Revenue Surge: Broadcom's Q1 AI revenue reached $8.4 billion, growing 106% year-over-year and exceeding forecasts, indicating robust demand for custom AI accelerators and networking, thereby solidifying the company's leadership in the rapidly expanding AI semiconductor market.
- Record Overall Revenue: The total revenue for Q1 was $19.31 billion, a 29% year-over-year increase, with adjusted EBITDA hitting $13.13 billion, representing 68% of revenue, reflecting the company's strong profitability in a high-demand environment.
- Shareholder Return Strategy: Broadcom returned $10.9 billion to shareholders in Q1 through $3.1 billion in cash dividends and $7.8 billion in stock repurchases, demonstrating the company's ongoing commitment to shareholder value.
- Optimistic Q2 Outlook: The company expects Q2 revenue to grow by 47% to $22 billion, with adjusted EBITDA remaining at 68%, indicating confidence in future growth and continued investment in the AI market.
See More
