AVGO: High-Quality Compounder or AI Valuation Trap? Curious Where r/stocks Lands

I’ve been watching Broadcom (AVGO) closely, and it feels like the debate around this stock has quietly shifted.

This isn’t really about “is Broadcom a good company?” anymore almost everyone agrees it is.

The real question seems to be:

Has the market already priced in too much perfection?

Here’s where I see the split:

Bull case:

Strong AI networking + custom silicon exposure

Massive backlog with hyperscaler customers

Software cash flows (VMware) supporting buybacks and dividends

Management with a long track record of execution

Bear case:

Valuation already assumes sustained AI capex with no hiccups

AI related products may pressure margins near term

Backlog ≠ guaranteed revenue timing

If AI spending cools even slightly, there’s not much valuation cushion

What makes AVGO tricky is that it’s not a hype stock it’s a disciplined compounder but it’s now being priced like an AI must-win.

So I’m curious how others here think about it:

Is AVGO fairly valued given its consistency and cash flow, or

Is this one of those names where “great company” ≠ “great entry price” right now?

Not trying to push a trade genuinely interested in how long term investors here are framing the risk/reward at these levels.