Broadcom Inc. (NASDAQ: AVGO) is taking a breather on Tuesday, November 25, 2025, after a blistering AI-fueled run. By late morning U.S. trading, AVGO shares were hovering around $373, down roughly 1.3% from Monday’s close of $377.96, after swinging as high as about $395 earlier in the session.
That intraday reversal comes directly on the heels of an 11.1% surge on Monday, which made Broadcom one of the standout winners in the ongoing AI stock rally.Finviz+2CoinCentral+2
AVGO Stock Price Snapshot for November 25, 2025
- Latest price: ≈ $373
- Day change: about –1.3% vs. Monday’s close
- Intraday range: roughly $372–$395 so far today
- 52-week range: about $138.10 – $386.48MarketBeat+1
- Market cap: around $1.6–1.8 trillion, putting Broadcom firmly in mega-cap territoryBarchart.com+2Simply Wall St+2
From a performance standpoint, AVGO has been a rocket:
- Year-to-date (YTD): up about 63%, vs. ~14% for the S&P 500
- 12‑month return: about 130%, vs. ~11% for the S&P 500Barchart.com
- 5‑year gain: investors who put $1,000 into AVGO five years ago would now be sitting on nearly $9,500, according to Barchart data.Barchart.com
Simply Wall St estimates AVGO’s one‑year total shareholder return at about 132%, underscoring how dramatically it has outpaced the broader market.Simply Wall St
What’s Driving AVGO? Google Gemini 3, Custom TPUs and the AI Build‑Out
The main storyline behind Broadcom’s explosive move is simple: AI infrastructure.
Google’s Gemini 3 and custom Broadcom TPUs
Alphabet’s rollout of its Gemini 3 AI platform has been a major catalyst. Multiple reports highlight that Google is leaning on Tensor Processing Units (TPUs) co‑designed and supplied by Broadcom to power Gemini 3 and related AI services in Google Cloud.CoinCentral+2Barchart.com+2
- CoinCentral notes that Broadcom stock jumped 11.1% on Monday, its best day in over seven months, as investors focused on the Google TPU partnership and surging AI token processing volumes.CoinCentral
- Zacks and Nasdaq likewise flagged Broadcom as one of the big winners in Monday’s AI rebound, with chips tied to Alphabet’s Gemini 3 helping drive an 11.1% one‑day move.Nasdaq+1
- Barchart adds that HSBC raised its price target on AVGO from $400 to $535 and Raymond James reiterated an Outperform rating, highlighting Broadcom’s role at the center of the AI infrastructure boom.Barchart.com
Meta–Google TPU buzz and the “second wave” of AI chips
Separately, media reports suggest Meta Platforms is considering using Google’s TPUs, potentially renting capacity from Google Cloud rather than relying solely on Nvidia GPUs. Because Broadcom is the silicon partner behind those TPUs, that scenario could extend Broadcom’s custom-chip revenue and improve multi‑year visibility.Benzinga+1
Bank of America this morning reiterated Buy ratings on Nvidia, AMD and Broadcom, explicitly citing the potential shift toward Google TPUs at large hyperscalers as reason to stay constructive on Broadcom’s AI opportunity even as GPU leaders face new competition.Seeking Alpha
Today’s Pullback: Profit‑Taking After a Vertical Move
So why is AVGO down today after all that?
From pre‑market pop to intraday flop
Ahead of the opening bell, AVGO shares were indicated more than 11% higher in pre‑market trading, boosted both by Gemini‑related enthusiasm and by dovish commentary from Federal Reserve officials that reignited hopes for another rate cut in December.AInvest+1
- AInvest reported AVGO up 11.1% pre‑market, noting that the stock was trading close to its 52‑week high around $386.48 and sitting comfortably above its 50‑ and 200‑day moving averages.AInvest+1
- As regular trading picked up, AVGO spiked toward the mid‑$390s before giving up gains and slipping into the red, with the last trade near $373.Barchart.com
After such a vertical two‑day move, plain old profit‑taking is a logical explanation. Barchart notes that AVGO has logged more than two dozen daily moves greater than 5% in the past year, underlining just how volatile this AI heavyweight has become.Barchart.com
Macro backdrop still supportive for high‑growth tech
At the index level, Monday’s rally in AI names came alongside:
- A 2.7% jump in the Nasdaq Composite
- A 1.6% gain in the S&P 500, driven by mega‑cap tech and utilities
- Rising odds of a December Fed rate cut, with futures pricing in more than an 80% chance according to Zacks’ recap published on Nasdaq.Nasdaq
That risk‑on backdrop is still in place today, even if AVGO itself is taking a breather.
Fundamentals Check: Q3 FY 2025 Earnings and the VMware Engine
Under all the AI headlines, Broadcom’s recent Q3 FY 2025 earnings report provided the hard numbers that enabled this rally.
According to analysis from The Futurum Group, Broadcom’s third quarter (for the period ended August 3, 2025) looked like this:Futurum
- Total revenue: about $16.0 billion, up 22% year over year
- Semiconductor Solutions: ~$9.2B, up 26%
- Infrastructure Software (including VMware): ~$6.8B, up 17%
- AI semiconductor revenue: roughly $5.2B, up 63% YoY, marking ten straight quarters of AI growth
- Free cash flow: about $7.0B, up from $4.8B a year earlier
Management guided for Q4 FY 2025 revenue of roughly $17.4B, up about 24% YoY, and projected AI chip revenue of around $6.2B—an eleventh consecutive quarter of AI growth. The company also disclosed a record backlog of about $110B, with at least half tied to semiconductors, giving investors unusually strong multi‑year visibility.Futurum
VMware Cloud Foundation: The quiet margin machine
VMware is doing a lot of quiet heavy lifting in the background:
- Infrastructure software revenue tied to VMware grew 17% YoY to $6.8B in Q3.
- Broadcom is migrating VMware customers to VMware Cloud Foundation (VCF); management has said that more than 90% of VMware’s top 10,000 customers are adopting the platform.
- Gross margins in this segment have climbed into the low‑90% range, with operating margins in the high‑70s, reflecting the economics of a subscription software model layered on top of Broadcom’s chip business.Futurum
That combination—high‑growth AI hardware plus high‑margin subscription software—helps explain why investors have been willing to pay such a steep multiple for AVGO.
Valuation: How Expensive Is AVGO After the Run?
Here’s where the debate gets intense.
P/E multiples and “fair value” guesses
Simply Wall St estimates that Broadcom currently trades at roughly 95× trailing earnings, versus about 35× for the U.S. semiconductor industry and ~55× for its peer group on average. Their fair‑value models land closer to a P/E of around 67× and a fair price in the high‑$390s, implying that the stock is slightly undervalued relative to aggressive growth assumptions but clearly priced for perfection.Simply Wall St
MarketBeat data similarly pegs Broadcom’s trailing P/E in the mid‑90s, with:MarketBeat+1
- Net margin: ~31.6%
- Return on equity: ~36.6%
- Debt‑to‑equity: about 0.86
- Current ratio: ~1.5 (healthy liquidity)
Bulls vs. bears on valuation
On the bullish side:
- Barchart notes that 40 analysts covering AVGO assign a consensus “Strong Buy” rating, with a mean price target around $400–401, implying mid‑single‑digit upside from recent prices.Barchart.com
- Other sources cite even higher targets: Melius and Jefferies have moved targets into the $475–$480 range, while HSBC recently went as high as $535.CoinCentral+1
- Bocom initiated coverage this month with a Buy rating and a $425 target, flagging Broadcom as a long‑term AI and infrastructure winner.swingtradebot.com
On the more cautious side, some commentators argue that:
- AVGO’s P/E near 90–100 is hard to justify even with 20–25% annual revenue growth.Simply Wall St+1
- The company carries substantial net debt compared with cash‑rich mega‑caps like Berkshire Hathaway, which some analysts now prefer on a risk‑adjusted basis.Finviz
In short, Wall Street broadly agrees Broadcom is a high‑quality AI infrastructure leader—but disagrees on how much investors should pay for that privilege.
Technical Picture: Still in an Uptrend, But Volatility Is Elevated
Technical indicators point to a stock that’s extended but still trending higher:
- AVGO is trading only a few percentage points below its 52‑week high around $386–$387.MarketBeat+1
- The shares remain well above their 50‑day (~$348) and 200‑day (~$302) moving averages, which many traders see as confirmation of an ongoing uptrend.MarketBeat+1
- AInvest’s pre‑market note highlighted resistance near $376 and support in the mid‑$330s, suggesting that today’s pullback is still happening inside a constructive technical range for now.AInvest
Given how often AVGO has moved 5% or more in a single session over the past year, sharp swings like today’s are very much part of the stock’s “normal” behavior.Barchart.com
What Investors Are Watching Next
Whether Tuesday’s dip proves to be a normal consolidation or something more significant will depend on a few key themes:
- AI Chip Demand and Hyperscaler Deals
- How fast Google ramps Gemini‑related TPUs
- Whether Meta, OpenAI and other hyperscalers deepen their custom‑chip relationships with BroadcomFuturum+2CoinCentral+2
- VMware Integration and Software Margins
- Continued migration to subscription‑based VCF
- The balance between AI hardware growth and software‑driven margin expansionFuturum
- Interest Rates and Macro Conditions
- The Fed’s December meeting and the path of rate cuts, which directly affect the discount rate on high‑growth tech stocks.Nasdaq+1
- Valuation and Sentiment
- Whether earnings growth and AI orders can “grow into” today’s premium multiple
- The tug‑of‑war between aggressive price targets (up to the mid‑$500s) and those who see Broadcom as overvalued after a nearly 1,000% five‑year run.Barchart.com+2Finviz+2
- Competition with Nvidia, AMD and Others
- The impact of Google’s and Meta’s chip decisions on Nvidia’s dominance
- How much of the AI data‑center spend shifts toward custom accelerators where Broadcom thrives.Seeking Alpha+1
Bottom Line on AVGO Stock Today
After a double‑digit rally on Monday and another pre‑market surge this morning, AVGO stock is finally exhaling, trading modestly lower but still extremely close to all‑time highs.
Broadcom remains:
- Deeply embedded in the AI infrastructure stack through custom TPUs and high‑speed networking
- Increasingly profitable thanks to VMware‑driven software margins
- One of the best‑performing mega‑cap stocks in the market over the past year
At the same time, its valuation leaves little room for disappointment, and today’s swingy session is a reminder that high‑momentum AI plays can move sharply in both directions.
For traders and long‑term investors alike, the rest of 2025 is likely to hinge on whether Broadcom can keep translating AI hype into sustained revenue and earnings growth—and whether that’s enough to justify a multiple that sits far above both the market and most of its semiconductor peers.
Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities.
