What strategies could boost AVGO's EPS in 2025?

Broadcom Inc. (AVGO) can enhance its EPS in 2025 through several strategic initiatives:

1. Leverage AI and Gen AI Opportunities: Broadcom's AI semiconductor solutions have seen significant growth, with AI revenue surging 77% year-over-year to $4.1 billion. Emphasizing AI product scaling and new product development can further boost revenue and profitability.
2. Optimize Revenue Mix and Growth: Broadcom expects AI revenue to increase by 65% year-over-year to $3.8 billion in Q1 2025. Focusing on high-margin AI and networking solutions can improve gross margins and EBITDA.
3. Invest in Next-Gen Technology and Products: Ongoing investment in AI accelerators and networking technology can sustain long-term growth and competitiveness.
4. Strategic Acquisitions and Partnerships: Broadcom's history of strategic acquisitions and partnerships can expand its offerings and market reach, enhancing revenue and market share.
5. Diversify and Strengthen Core Business Units: While Broadcom's non-AI semiconductor segments have shown mixed results, focusing on recovery and growth in areas like broadband can provide stable revenue.
6. Operational Efficiency and Capital Management: Broadcom's strong free cash flow and robust adjusted EBITDA margin of 64.7% indicate effective capital management. Maintaining operational efficiency can support EPS growth by reducing costs and increasing profitability.

By focusing on these strategies, Broadcom can enhance its EPS in 2025 by capitalizing on growth opportunities, optimizing its revenue mix, and improving operational efficiency.