Broadcom AVGO introduced Incident Prediction, which extends the security feature of Adaptive Protection, a unique capability of Symantec Endpoint Security Complete (SES-C), on Tuesday. The AI-powered protection helps in predicting and disrupting living-off-the-land attacks and other cyberthreats. SES-C is an integrated endpoint security platform that delivers cloud-based protection with AI-guided security management, all on a single agent/console architecture.

Incident Prediction leverages a deep learning model that is trained on more than 500,000 real-world attack events. Apart from enhancing Adaptive Protection, Incident Chain reduces the burden on SOC analysts and minimizes business disruption, all while providing comprehensive resilience against advanced cyber threats. Incident Prediction will help Broadcom provide enterprise-grade security to all organizations, irrespective of a mature SOC or a small security team.

Broadcom’s focus on delivering AI-powered, proactive security to stay ahead of evolving cyber threats has been noteworthy. In March 2025, AVGO introduced updates to VMware vDefend, improving security planning, lifecycle management, and scalability for VMware Cloud Foundation (VCF) with new tools like the Security Segmentation Assessment and Report, optimized micro-segmentation, and advanced Network Detection and Response, all aimed at improving threat prevention and operational efficiency. These updates have shown notable benefits, including a 40% reduction in cyber breach risk and a 116% return on investment (ROI) for organizations using VMware vDefend.

AVGO Benefits From Expanding Clientele, Rich Partner Base

AVGO shares have dropped 22.8% year to date, underperforming the Zacks Computer & Technology sector’s decline of 13.9%. The company has been suffering from the ongoing sell-off in technology stocks amid rising fears of a recession following U.S. President Donald Trump’s decision to levy tariffs on top trading partners, including China, Mexico and Canada, which has increased the chances of a trade war. Technology companies, including Broadcom, import key parts to international markets, which makes them vulnerable to a trade war. 

However, we believe the dip offers a massive opportunity for investors to buy the stock. Growth-oriented investors should ignore the near-term headwinds due to an expanding portfolio and rich partner base.

Broadcom’s rich partner base, including NVIDIA, ANET, Alphabet GOOGL, META Platforms META, DELL Technologies DELL, Juniper and Supermicro, has been a key catalyst. 

Strong demand for Broadcom’s application-specific integrated chips (ASICs), designed to support AI and machine learning and make these tasks more efficient, aids top-line growth. Alphabet and Meta Platforms are notable users of Broadcom’s ASICs.

Broadcom and Dell Technologies have a long-standing partnership that integrates Broadcom’s VMware Cloud Foundation for hyperconverged infrastructure solutions, while expanding into AI networking and connectivity to enhance Dell’s AI-driven hardware offerings.

These factors are expected to drive strong AI revenues. AVGO expects second-quarter fiscal 2025 AI revenues to jump 44% year over year to $4.4 billion. Semiconductor revenues are expected to surge 17% year over year to $14.9 billion.

AVGO’s Earnings Estimate Revision Shows Upward Trend

The Zacks Consensus Estimate for fiscal 2025 earnings is pegged at $6.60 per share, up 0.6% over the past 30 days, indicating 35.52% year-over-year growth.

The consensus estimate for fiscal second-quarter earnings is pegged at $1.57 per share, increased by a penny over the past 30 days, indicating 42.73% year-over-year growth.

AVGO’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 3.44%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Conclusion

Broadcom’s strong portfolio, along with an expanding partner base, reflects solid top-line growth potential over the long run.

Broadcom currently sports a Zacks Rank #1 (Strong Buy) and a has Growth Score of B, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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