Otto Analytics
Frontier Infrastructure · Conviction Research
Research Preview
July 4, 2026
Investment Memorandum · Preview
AVGOBroadcom Inc.
Generated in part by an automated AI system. See disclaimer on the full report.
Thesis

Broadcom is the indispensable engineering partner for the shift from merchant GPUs to custom hyperscaler AI silicon, and it just added OpenAI to a roster that already includes Google, Meta, and ByteDance. Underneath the AI story sits a $33B-a-year free cash flow machine and a VMware software annuity with switching costs few enterprises can escape. Revenue compounded 48% last quarter at a 69% gross margin. The engine is not in doubt. After a 25% correction to the 200-day line, what you pay for it is.

The rest of the note answers the price question.
The full report carries the conviction call, the eight-analyst debate, the key metrics, and the position sizing. It is the work behind where we came down and why. Available to members.
Read the full note