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Hype Asset of the Day | March 23, 2022

Broadcom (AVGO)

The recent worldwide chip shortage spurred on by the looming threat of China wanting to invade Taiwan has highlighted just how reliant modern industries are on semiconductors and various chips. From computer hardware to mobile devices, and even vehicles, almost everything electrical in the modern world requires a chip of some description. Broadcom Inc (AVGO) is a leading supplier of connectivity chips and also provides infrastructure software solutions. This trending stock has received a massive 130.77% increase in mentions over the past day and with buyer sentiment being a driving force behind price movement, all eyes are on Broadcom over the coming weeks. Currently, Broadcom is trading around $611, down about 7.85% from its 2022 highs.


  • Broadcom’s financials are looking bright, with revenue up 16% across 2021 and net income climbing by a jaw-dropping 79.4% over the same period.

  • Likely as a result of the uncertainty surrounding Taiwan Semiconductor Manufacturing Company, Broadcom’s semiconductor solutions segment also enjoyed staggering growth, posting a 76% rise in revenue. With this segment consisting of around 76.6% of Broadcom’s revenue, this extra cash flow was likely a big bonus.

  • These days, most devices connect to the internet, even fridges, curtains, and lights. Each of these devices requires a chip to connect to the internet and Broadcom is one of the largest global suppliers of Wi-Fi 6 and 6E chips. As we get more 'smart' devices, the need for Broadcom’s services will grow.

  • As a dividend stock, Broadcom also performs well. It currently offers a 2.8% dividend yield with its dividends climbing by an average of 48% each year since 2011.

  • Apple is the largest company in the world. Meaning a contract supplying the tech titan can be extremely lucrative. As it would happen, Broadcom struck a 3.5 year deal worth $15 billion with Apple in 2020 that will be in play until mid-2023.

  • Analysts are expecting major growth for Broadcom with expectations of a 27.2% year-on-year revenue growth in the second quarter and a further 14.7% annual revenue growth for the next 5 years.


  • Despite posting solid financials, Broadcom’s share price is still down by around 10% this year. While this could be the perfect opportunity to buy Broadcom stock for relatively cheap, there tends to be a reason why a stock’s price is being suppressed.

  • Taiwan Semiconductor (TSMC) has been struggling over the past 12 months due to the threat of invasion from China. While this has had global ramifications, Broadcom seems particularly at risk as they are still dependent on TSMC to supply 75% of the semiconductors they sell.

Hype Asset of the Day - Conclusion

Broadcom is a trending stock with massive upside potential. It boasts solid financials and has a well-defined place in the market. With mentions of Broadcom up by 130.77% over the past day, it seems everyone is talking about this semiconductor savant. Buyer sentiment tends to have a large effect on the price of a share, meaning it could be a great time to buy Broadcom stock before investors become bullish. To learn more about the services HypeIndex offers, you can check out our FAQ page and for alerts straight to your inbox take a look at our premium plans.

HypeIndex is an AI platform that detects Hype in stocks and cryptos before it moves the market, providing reliable early detection for profitable investment opportunities.

The algorithm for our proprietary HypeIndex score is based on sentiment analysis, data science and machine learning.

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