Well-known investor Stephanie Link reported on CNBC yesterday that she had recently increased the amount of Broadcom Inc. (AVGO) stock that she owns.
Link, the Head of Investment Solutions at Hightower Advisors, frequently appears on CNBC.
A technician working at a magnified microscope, developing a new integrated circuit.
Why Link Is Bullish on AVGO Stock
The investor is pleased by the actions that Broadcom Inc. (AVGO) has taken to diversify its revenue sources.
Specifically, AI chips account for 30% of the firm’s revenue, while software generates 40% of its sales, Link reported.
“That’s a great combination,” she said.
Additionally, the company just announced that it would buy back $10 billion of its own shares, she stated.
“That’s not (a) huge buyback, but it’s actually an endorsement that they feel good about their business,” Link said.
Finally, the shares are still 14% below their highs, she noted.
More About Broadcom Inc. (AVGO) Stock
Analysts on average expect AVGO’s earnings per share to climb to $6.63 this year from $4.87 in 2024. For 2026, the average estimate calls for EPS of $7.86.
In the last month, the shares have gained 30%, while they have fallen 1% in the last three months.
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This article is originally published at Insider Monkey.
