Broadcom (AVGO) AI Stock Analysis

• Market Cap: $1.63T
• Dividend Yield: 0.67%
• Average Volume (3M): 23.64M
• Price to Earnings (P/E): 88.0
• Beta (1Y): 2.39
• Revenue Growth: 28.01%
• EPS Growth: 235.66%
• Country: US
• Employees: 37,000
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 1.69
• Shares Outstanding: 4,722,365,000
• 10 Day Avg. Volume: 23,078,727
• 30 Day Avg. Volume: 23,635,257
• PEG Ratio: -2.11
• Price to Book (P/B): 11.52
• Price to Sales (P/S): 15.11
• P/FCF Ratio: 40.15
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 24.30
• Enterprise Value/Gross Profit: 36.36
• Enterprise Value/Ebitda: 45.84
• 1Y Price Target: $391.71
• Price Target Upside: 10.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 29

• Rating: 79 Outperform
• Price Target: $408.00 ▲(15.21% Upside)

Broadcom's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The company's strategic focus on AI semiconductors and robust backlog support future growth prospects. Technical indicators show positive momentum, though valuation concerns slightly temper the overall outlook.

Positive Factors

AI Semiconductor Growth

Broadcom's significant growth in AI semiconductors positions it well for future market leadership, leveraging the increasing demand for AI technologies.

Infrastructure Software Performance

Strong performance in infrastructure software enhances Broadcom's diversified revenue streams, reducing reliance on cyclical semiconductor sales.

Strong Backlog and Bookings

A robust backlog ensures future revenue visibility and stability, allowing Broadcom to plan and invest in long-term growth initiatives confidently.

Negative Factors

Non-AI Semiconductor Demand

Weak demand in non-AI semiconductors could hinder overall growth, as these products remain a significant part of Broadcom's portfolio.

Gross Margin Impact

Margin pressures from product mix changes could impact profitability, challenging Broadcom's ability to maintain its historically strong margins.

Apple's Self-Developed Chips

Apple's move to self-developed chips may reduce Broadcom's revenue from a key customer, impacting its wireless segment's long-term growth.

Broadcom Business Overview & Revenue Model

Company Description

Broadcom Inc. (AVGO) is a global technology company that designs, develops, and supplies a broad range of semiconductor and infrastructure software solutions. Operating in multiple sectors, including wired and wireless communication, enterprise storage, and industrial applications, Broadcom's core products encompass networking chips, broadband modems, and storage controllers, as well as a suite of software solutions for enterprise security and networking. The company serves a diverse customer base, from large data centers to consumer electronics manufacturers, positioning itself as a key player in the semiconductor industry.

How the Company Makes Money

Broadcom generates revenue primarily through the sale of its semiconductor products and infrastructure software solutions. Its revenue model is diversified, with significant contributions from various segments, including networking, broadband, enterprise storage, and wireless communication. Key revenue streams include the sale of ASICs (Application-Specific Integrated Circuits), optical sensors, and Wi-Fi chips, along with software licensing and support services. Additionally, Broadcom benefits from strategic partnerships with major technology firms and telecom companies, which help to secure long-term contracts and enhance its market presence. The company's robust R&D investments also enable the continuous development of innovative products, further driving its earnings growth.

Broadcom Financial Statement Overview

Summary

Broadcom exhibits a strong financial profile with robust profitability, efficient operations, and healthy cash generation. The income statement reflects strong profitability with a net profit margin of 31.59% and revenue growth of 5.05%. The balance sheet is healthy with a manageable debt-to-equity ratio of 0.88, though further debt reduction could enhance stability. Cash flow is strong, with a free cash flow growth rate of 9.84%.

Income Statement

Broadcom's income statement reflects strong profitability and growth. The TTM gross profit margin of 66.83% and net profit margin of 31.59% indicate robust profitability. Revenue growth rate of 5.05% in the TTM suggests steady expansion, supported by a solid EBIT margin of 38.28% and EBITDA margin of 53.39%. These metrics highlight Broadcom's efficient operations and competitive positioning in the semiconductor industry.

Balance Sheet

The balance sheet shows a healthy financial structure with a debt-to-equity ratio of 0.88 in the TTM, indicating manageable leverage. Return on equity (ROE) of 27.01% demonstrates effective use of equity to generate profits. The equity ratio of 44.24% suggests a balanced capital structure, though there is room for improvement in reducing debt levels further.

Cash Flow

Broadcom's cash flow statement is strong, with a free cash flow growth rate of 9.84% in the TTM, indicating healthy cash generation. The operating cash flow to net income ratio of 1.52 and free cash flow to net income ratio of 0.98 reflect efficient cash conversion and strong operational performance. These metrics underscore Broadcom's ability to sustain operations and fund growth initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2018
Income Statement
Total Revenue	59.93B	51.57B	35.82B	33.20B	27.45B	20.85B
Gross Profit	40.05B	32.51B	24.69B	22.09B	16.84B	10.73B
EBITDA	31.77B	23.88B	20.55B	19.16B	14.69B	9.23B
Net Income	18.93B	5.89B	14.08B	11.49B	6.74B	12.26B
Balance Sheet
Total Assets	165.62B	165.65B	72.86B	73.25B	75.57B	50.12B
Cash, Cash Equivalents and Short-Term Investments	10.72B	9.35B	14.19B	12.42B	12.16B	4.29B
Total Debt	64.23B	67.57B	39.65B	39.98B	40.27B	17.49B
Total Liabilities	92.34B	97.97B	48.87B	50.54B	50.58B	23.47B
Stockholders Equity	73.28B	67.68B	23.99B	22.71B	24.99B	26.66B
Cash Flow
Free Cash Flow	24.93B	19.41B	17.63B	16.31B	13.32B	8.24B
Operating Cash Flow	25.44B	19.96B	18.09B	16.74B	13.76B	8.88B
Investing Cash Flow	-345.00M	-23.07B	-689.00M	-667.00M	-245.00M	-4.67B
Financing Cash Flow	-24.33B	-1.73B	-15.62B	-15.82B	-8.97B	-11.12B

Broadcom Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 354.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVGO, the sentiment is Positive. The current price of 354.13 is above the 20-day moving average (MA) of 342.05, above the 50-day MA of 331.38, and above the 200-day MA of 254.46, indicating a bullish trend. The MACD of 4.39 indicates Positive momentum. The RSI at 57.76 is Neutral, neither overbought nor oversold. The STOCH value of 46.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVGO.

Broadcom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVGO	79 Outperform	$1.63T	87.96	27.08%	0.67%	28.01%	235.66%
MU	78 Outperform	$232.02B	27.23	17.20%	0.21%	48.85%	997.29%
QCOM	77 Outperform	$182.64B	16.40	44.62%	2.06%	15.82%	34.20%
AMD	72 Outperform	$381.35B	145.58	4.70%	―	27.17%	108.67%
TXN	72 Outperform	$155.20B	31.42	29.60%	3.22%	9.90%	1.65%
MRVL	69 Neutral	$69.87B	―	-0.75%	0.29%	37.05%	89.40%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Broadcom Corporate Events

Suncoast Equity Management Boosts Stake in Broadcom Inc.

Mirova US LLC Boosts Stake in Broadcom Inc.

Broadcom Issues $5 Billion in Senior Notes

On September 22, 2025, Broadcom Inc. entered into an underwriting agreement to issue and sell $5 billion in senior notes, with varying maturity dates in 2030, 2036, and 2038. This move is part of Broadcom’s strategic financial management, as the company plans to redeem outstanding notes totaling approximately $3.6 billion, which are due in 2027, to optimize its debt structure and potentially reduce interest expenses.

The most recent analyst rating on (AVGO) stock is a Buy with a $400.00 price target. To see the full list of analyst forecasts on Broadcom stock, see the AVGO Stock Forecast page.

Broadcom Completes Acquisition of VMware for $84.2 Billion

On November 22, 2023, Broadcom Inc. completed its acquisition of VMware, Inc., marking a significant merger in the technology industry. The transaction involved a complex series of mergers and conversions, resulting in VMware becoming a wholly owned subsidiary of Broadcom. VMware shareholders were offered either cash or Broadcom stock, with the total consideration amounting to approximately $30.8 billion in cash and 544 million shares of Broadcom stock valued at $53.4 billion. This acquisition was financed through a combination of cash on hand and $30.4 billion in term loans. Broadcom’s strategic move is expected to enhance its position in the software and infrastructure sectors, potentially offering new growth opportunities and synergies for stakeholders.

The most recent analyst rating on (AVGO) stock is a Buy with a $396.00 price target. To see the full list of analyst forecasts on Broadcom stock, see the AVGO Stock Forecast page.

Broadcom Grants CEO Performance Stock Award for AI Growth

On September 3, 2025, Broadcom‘s Board of Directors granted CEO Hock E. Tan a performance stock unit award to incentivize his leadership through fiscal 2030, aligning with the company’s AI-driven growth strategy. The award’s vesting depends on achieving challenging AI-related revenue targets and continued service, reflecting the company’s commitment to advancing its position in the rapidly evolving technology sector.

The most recent analyst rating on (AVGO) stock is a Buy with a $365.00 price target. To see the full list of analyst forecasts on Broadcom stock, see the AVGO Stock Forecast page.

Broadcom Inc. Reports Record Revenue Amid AI Growth

The recent earnings call from Broadcom Inc. showcased a strong performance in AI semiconductors and infrastructure software, with record revenues and a solid backlog. Despite some challenges in the non-AI semiconductor segment and pressures on gross margins due to product mix, the overall sentiment was optimistic. The positive highlights significantly outweighed the lowlights, indicating a promising outlook for future growth, particularly in AI.

Broadcom Inc. Reports Strong Q3 2025 Earnings Growth

Broadcom Inc., a global technology leader, specializes in designing, developing, and supplying semiconductor and infrastructure software solutions, serving critical markets such as cloud, data center, and enterprise software.

Broadcom Reports Strong Q3 2025 Financial Results

On September 4, 2025, Broadcom Inc. announced its third quarter fiscal year 2025 financial results, reporting a 22% increase in revenue to $15.952 billion and a significant rise in AI revenue. The company declared a quarterly cash dividend of $0.59 per share, payable on September 30, 2025. Broadcom’s strong financial performance is attributed to growth in custom AI accelerators, networking, and VMware, with expectations of continued growth in AI semiconductor revenue in the fourth quarter.

The most recent analyst rating on (AVGO) stock is a Buy with a $342.00 price target. To see the full list of analyst forecasts on Broadcom stock, see the AVGO Stock Forecast page.

Duquesne Family Office Boosts Stake in Broadcom Inc.

Intermede Investment Partners Ltd Reduces Broadcom Inc. Stake

Appaloosa Management LP Reduces Stake in Broadcom Inc.

Clough Capital Partners Boosts Stake in Broadcom Inc.

Coatue Management Boosts Stake in Broadcom Inc.

Chilton Investment Co LLC Reduces Stake in Broadcom Inc.

Ardsley Advisory Partners Reduces Stake in Broadcom Inc.

Night Owl Capital Boosts Stake in Broadcom Inc.

Graham Capital Boosts Stake in Broadcom Inc.

Woodline Partners LP Boosts Stake in Broadcom Inc.

Moore Capital Management LP Boosts Stake in Broadcom Inc.

Tiger Global Boosts Stake in Broadcom Inc.

Bristol Gate Capital Partners Reduces Stake in Broadcom

Gamco Investors Boosts Stake in Broadcom Inc.

Fisher Asset Management Reduces Stake in Broadcom Inc.

MIG Capital, Llc Boosts Stake in Broadcom Inc.

SCS Capital Management LLC Boosts Stake in Broadcom

Sands Capital Management Boosts Stake in Broadcom Inc.

Bridgewater Associates Boosts Stake in Broadcom Inc.

Bowie Capital Management Boosts Stake in Broadcom Inc.

PRIMECAP Management Co Reduces Stake in Broadcom Inc.

First Pacific Advisors LLC Reduces Stake in Broadcom Inc.

Morningstar Investment Management Boosts Stake in Broadcom

Barton Investment Management Boosts Stake in Broadcom Inc.

Platinum Investment Management Reduces Stake in Broadcom Inc.