Broadcom's soaring stock is getting cheaper. Here's the math on how that's possible

Another Broadcom earnings report, another breathtaking stock reaction in response. Shares of the AI chipmaker are soaring almost 11% Friday, sending the stock to a fresh all-time high and putting its market capitalization north of $1.5 trillion. The monster move evokes what we saw from Broadcom back in December, when shares flew 24% in a single session on strong earnings and extra sweet conference call commentary from CEO Hock Tan. A similar situation is playing out again Friday. Yes, Broadcom's fiscal 2025 third quarter results were strong, but adding fuel to the advance is an equally strong guide for the ongoing quarter and Tan's remarkably upbeat updates on the call. Taken together, it's clear that despite all the hoopla about an artificial intelligence spending bubble, we've not yet se