Broadcom (AVGO)
NASDAQ:AVGO
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Broadcom
(NASDAQ:AVGO)
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Rating:72Outperform
Price Target:
$422.00
▲(10.83% Upside)
Action:ReiteratedDate:04/07/26
The score is supported primarily by strong financial performance (premium margins and exceptional free-cash-flow generation) and a highly bullish earnings outlook driven by rapid AI growth and strong margin guidance. Offsetting factors are a weakened technical setup (trading below major moving averages) and a demanding valuation (high P/E with low yield), which increase sensitivity to any execution or demand shortfall.
Positive Factors
Exceptional cash generation
Broadcom's sustained, very large free cash flow provides long-term financial optionality. High cash conversion (FCF ≈97% of net income) supports recurring dividends, material buybacks, strategic M&A and supply-chain investments, strengthening resilience across industry cycles and funding growth without equity dilution.
Negative Factors
Customer concentration risk
Dependence on a handful of hyperscalers and large OEMs raises strategic vulnerability: large customers can change procurement, negotiate tougher terms, or internalize designs. This concentration can produce material revenue swings and erode pricing leverage if one or more major customers shift strategy.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional cash generation
Broadcom's sustained, very large free cash flow provides long-term financial optionality. High cash conversion (FCF ≈97% of net income) supports recurring dividends, material buybacks, strategic M&A and supply-chain investments, strengthening resilience across industry cycles and funding growth without equity dilution.
Read all positive factors
Broadcom (AVGO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.80T
Dividend Yield0.69%
Average Volume (3M)27.00M
Price to Earnings (P/E)53.4
Beta (1Y)2.49
Revenue Growth25.22%
EPS Growth145.70%
CountryUS
Employees37,000
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)2.05
Shares Outstanding4,734,668,000
10 Day Avg. Volume21,792,359
30 Day Avg. Volume26,995,759
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)21.01
Price to Sales (P/S)26.74
P/FCF Ratio63.47
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue27.20
Enterprise Value/Gross Profit40.54
Enterprise Value/Ebitda47.72
Forecast
1Y Price Target
$465.55Price Target Upside22.26% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering31
EPS Forecast (FY)11.31
Revenue Forecast (FY)$103.40B
Broadcom Business Overview & Revenue Model
Company Description
Broadcom, Inc. is a global technology company, which designs, develops and supplies semiconductor and infrastructure software solutions. The company is headquartered in San Jose, California and currently employs 19,000 full-time employees. The fir...
How the Company Makes Money
Broadcom makes money primarily through two operating segments: (1) Semiconductor Solutions and (2) Infrastructure Software. In Semiconductor Solutions, it generates revenue mainly by selling chips and related components to equipment manufacturers ...
Broadcom Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue across different business units, highlighting which segments drive growth and profitability, and indicating strategic focus areas.
Analyzes revenue across different business units, highlighting which segments drive growth and profitability, and indicating strategic focus areas.
Data provided by:
The Fly
The FlyBroadcom Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jun 04, 2026
Earnings Call Sentiment Positive
The call is strongly positive: Broadcom reported record revenue and profitability, exceptionally rapid AI semiconductor and AI networking growth, multi‑year customer engagements, secured supply for key components through 2028, and robust free cash flow and shareholder returns. Lowlights are mostly execution and concentration risks — non‑AI revenue flatness, increased inventory, dependency on a small number of large customers, and the ambitious forward guidance which could create execution risk if ramps slow. Overall, the positives (record results, high margins, clear AI momentum and supply commitments) substantially outweigh the risks highlighted on the call.Positive Updates
Record Quarterly Revenue and Strong Top-Line Growth
Q1 fiscal 2026 total revenue of $19.3 billion, up 29% year‑over‑year and a company record; Q2 guidance of approximately $22.0 billion, up 47% year‑over‑year.
Negative Updates
Concentration Risk Among Few Large AI Customers
Revenue upside is concentrated among a small set of customers (management cites 6 customers driving volumes). This customer concentration creates strategic and execution risk if any customer changes plans or pursues successful customer‑owned tooling (COT) over time.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarterly Revenue and Strong Top-Line Growth
Q1 fiscal 2026 total revenue of $19.3 billion, up 29% year‑over‑year and a company record; Q2 guidance of approximately $22.0 billion, up 47% year‑over‑year.
Read all positive updates
Company Guidance
Broadcom guided Q2 FY2026 consolidated revenue of approximately $22.0 billion (up 47% year‑over‑year), with consolidated gross margin flat sequentially at ~77% and adjusted EBITDA of ~68% of revenue; Semiconductor revenue is guided to about $14.8 billion (up 76% YoY), including AI semiconductor revenue of roughly $10.7 billion (up ~140% YoY) and non‑AI semiconductor revenue of ~$4.1 billion (up ~4% YoY); Infrastructure Software revenue is guided to ~ $7.2 billion (up 9% YoY). For modeling, the company expects a non‑GAAP tax rate of ~16.5% and a non‑GAAP diluted share count of ~4.94 billion (excluding potential repurchases).Broadcom Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
72
Positive
Cash Flow
90
Very Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 68.28B | 63.89B | 51.57B | 35.82B | 33.20B | 27.45B |
| Gross Profit | 45.81B | 43.29B | 32.51B | 24.69B | 22.09B | 16.84B |
| EBITDA | 38.92B | 34.71B | 23.88B | 20.55B | 19.16B | 14.69B |
| Net Income | 24.97B | 23.13B | 5.89B | 14.08B | 11.49B | 6.74B |
Balance Sheet | ||||||
| Total Assets | 169.90B | 171.09B | 165.65B | 72.86B | 73.25B | 75.57B |
| Cash, Cash Equivalents and Short-Term Investments | 14.17B | 16.18B | 9.35B | 14.19B | 12.42B | 12.16B |
| Total Debt | 66.06B | 65.14B | 67.57B | 39.65B | 39.98B | 40.27B |
| Total Liabilities | 90.03B | 89.80B | 97.97B | 48.87B | 50.54B | 50.58B |
| Stockholders Equity | 79.87B | 81.29B | 67.68B | 23.99B | 22.71B | 24.99B |
Cash Flow | ||||||
| Free Cash Flow | 28.91B | 26.91B | 19.41B | 17.63B | 16.31B | 13.32B |
| Operating Cash Flow | 29.68B | 27.54B | 19.96B | 18.09B | 16.74B | 13.76B |
| Investing Cash Flow | -521.00M | -580.00M | -23.07B | -689.00M | -667.00M | -245.00M |
| Financing Cash Flow | -24.30B | -20.13B | -1.73B | -15.62B | -15.82B | -8.97B |
Broadcom Technical Analysis
Positive
380.78
Price Trends
327.11
Positive
340.37
Positive
329.52
Positive
Market Momentum
9.26
Negative
73.07
Negative
95.80
Negative
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 380.78 is above the 20-day moving average (MA) of 324.75, above the 50-day MA of 327.11, and above the 200-day MA of 329.52, indicating a bullish trend. The MACD of 9.26 indicates Negative momentum. The RSI at 73.07 is Negative, neither overbought nor oversold. The STOCH value of 95.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVGO.
Broadcom Risk Analysis
Broadcom disclosed 42 risk factors in its most recent earnings report. Broadcom reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Broadcom Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $481.05B | 8.48 | 40.84% | 0.20% | 45.43% | 203.31% | |
72 Outperform | $1.80T | 53.40 | 32.85% | 0.69% | 25.22% | 145.70% | |
71 Outperform | $402.43B | 80.54 | 7.18% | ― | 34.34% | 163.27% | |
70 Outperform | $140.03B | 15.44 | 21.63% | 2.01% | 10.25% | -48.23% | |
68 Neutral | $114.82B | 42.24 | 19.38% | 0.28% | 44.95% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $327.27B | -658.38 | -0.26% | ― | -0.47% | 98.20% |
* Technology Sector Average
AVGO
Broadcom
380.78
203.27
114.51%
AMD
Advanced Micro Devices
255.07
159.78
167.68%
INTC
Intel
63.81
43.96
221.46%
MRVL
Marvell
133.83
80.65
151.67%
MU
Micron
465.66
394.79
557.06%
QCOM
Qualcomm
132.84
-2.59
-1.91%
Broadcom Corporate Events
Business Operations and Strategy
Broadcom Expands Long-Term AI Infrastructure Partnership With Google
Positive
Apr 6, 2026
Broadcom has signed a long-term agreement with Google to develop and supply custom Tensor Processing Units for Google’s future TPU generations, alongside a supply assurance deal to provide networking and other components for Google’s n...
Executive/Board Changes
Broadcom Names New CFO as Longtime Finance Chief Retires
Neutral
Apr 2, 2026
On March 30, 2026, Broadcom announced that longtime finance chief Kirsten M. Spears will retire and resign as chief financial officer and chief accounting officer, effective June 12, 2026, and will remain as a consultant through March 15, 2027 und...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Broadcom Delivers Record Q1 Results on Surging AI Demand
Positive
Mar 4, 2026
Broadcom Inc. reported record financial results for the first quarter of fiscal 2026, ended February 1, 2026, with revenue climbing 29% year-on-year to $19.3 billion and GAAP net income rising 34% to $7.3 billion, driven largely by surging demand ...
Executive/Board Changes
Broadcom Announces Planned Retirement of Longtime Board Director
Neutral
Mar 2, 2026
Broadcom Inc. announced that director Eddy W. Hartenstein will retire from its Board of Directors at the conclusion of his term at the company’s 2026 annual meeting of stockholders, in line with its corporate governance guidelines that call ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.