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what it is
Broadcom makes chips and software that run phones, data centers, and corporate networks.
how it gets paid
Last year Broadcom made $63.9B in revenue. digital semiconductor devices was the main engine at $37.1B, or 58% of sales.
why it's growing
Revenue grew 23.9% last year on ~$63.9B. The ~$19.3B line in the feed is a quarter (about 30% vs. prior year there), not the full year—do not stack it against FY without relabeling.
what just happened
Broadcom posted about $19.3B in quarterly revenue in this feed; GAAP vs adjusted EPS still disagrees across vendors.
At a glance
A balance sheet — strong enough to weather a downturn
45/100 earnings predictability — expect surprises
59.4x trailing p/e — you're paying up for this one
0.6% dividend yield — cash in your pocket every quarter
48.0% return on capital — every dollar works hard here
xvary composite: 74/100 — average
What they do
Broadcom makes chips and software that run phones, data centers, and corporate networks.
Broadcom sells into systems customers hate to replace. Switching costs (leaving is painful) keep your install base sticky. Chips are 58% of 2024 revenue, software is 42%, and that mix supports a 39.9% operating margin.
How they make money
$63.9B
annual revenue · their business grew +23.9% last year
digital semiconductor devices
$37.1B
n/a
Infrastructure software
$26.8B
n/a
The products that matter
designs connectivity chips
Semiconductor Solutions
part of a $63.9B business
this is the silicon side — networking, broadband, and connectivity products inside a company that grew 23.9% last year. when AI clusters and data traffic rise, this part gets more attention.
infrastructure
runs enterprise software
Infrastructure Software
$69B deal changed the mix
VMware came in through the $69B acquisition, and software profits were up 57% in the first nine months. that's the quiet part: Broadcom is asking investors to value software cash flows, not just chip demand.
margin engine
builds custom ai silicon
Custom AI Accelerators
part of the $85B revenue bet
this is one reason analysts model $85B in fiscal 2026 revenue instead of $63.9B today. in human-speak: if AI budgets keep flowing, Broadcom keeps earning the premium.
ai demand
Key numbers
59.4x
trailing p/e
You are paying $59.40 for $1 of trailing earnings. That price only works if growth stays hot.
39.9%
operating margin (FY · co.)
Broadcom keeps $39.90 of every $100 in sales before taxes (company scope in this feed). That gap is why the stock gets respect—do not stack it against a single quarter’s gross margin without relabeling.
48.0%
return on capital
Every dollar tied up in the business throws off 48 cents of operating profit. That is a nasty machine.
$63.9B
annual revenue
This is not a small story. To grow, Broadcom has to keep scaling an already giant base.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 3 — safer than 50% of stocks
- price stability 35 / 100
- long-term debt $62.8B (3% of capital)
- net profit margin 57.2% — keeps 57 cents of every dollar in revenue; if that tops the FY operating margin in key numbers, reconcile GAAP vs adjusted and the same period in the 10-K—both rarely apply apples-to-apples off one vendor row.
- return on equity 68% — $0.68 profit for every $1 investors have put in
A with balance sheet grade and net profit margin standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in AVGO 3 years ago → it's now worth $79,500.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Broadcom posted ~$19.3B in quarterly revenue, and EPS numbers conflict across sources.
EDGAR shows about $19.3B for that quarter, with GAAP EPS near $1.50 and 68.1% gross margin. Yahoo's adjusted line can read nearer $1.95 vs $1.88 expected—always match GAAP vs non-GAAP.
$19.3B
Q revenue
$1.50
eps (Q · GAAP)
68.1%
gross margin (Q)
the number that mattered
Quarterly revenue near $19.3B with strong vs. prior year growth matters—but pair it with the ~$63.9B FY anchor so the period is never ambiguous.
-
our broadcom report is affected by two different issues.note: fiscal 2025 earnings, ended october 26th, were set to be released immediately after we went to press.
-
also, our presentation is now based on non-gaap accounting rather than on a gaap basis.we have restated only fiscal 2025 results, but the bottom-line impact is substantial due to the prior inclusion of hefty amortization charges from acquisitions and stock compensation expenses.
-
the company is executing well in both its chips and software businesses.broadcom is a very unique company with both enormous semiconductor and infrastructure software operations. ceo hock tan has a tremendous reputation, not only from an operational standpoint, but also as a dealmaker able to integrate several software acquisitions in a highly profitable fashion. the massive $69 billion vmware deal is still being folded into broadcom and appears to be going well.
-
nine-month software profits are up 57%, and further cost cutting should continue in 2026.meanwhile, the broad-based semiconductor businesses are doing well thanks mostly to networking applications within evolving artificial intelligence (ai) technology.
-
as a leader in this field, broadcom is well-positioned to benefit from hyperscalers’ need for avgo chipsets enabling high-speed transmission.
source: company earnings report, 2026
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What could go wrong
Broadcom's risk is specific, not abstract: you are paying 59.4x trailing earnings for a company that now needs AI demand and the VMware margin story to work at the same time.
med
hyperscaler capex cools down
custom AI chips and networking demand are doing a lot of work in the current story. if hyperscalers spend less, the market stops treating this like a premium AI infrastructure asset.
at 59.4x trailing earnings, even a modest slowdown matters. the setup depends on the path from $63.9B in revenue today toward the $85B fiscal 2026 estimate.
med
VMware friction lasts longer than investors want
the $69B VMware deal changed Broadcom's mix and profit profile. legal or antitrust friction does not need to unwind the deal to create trouble. it just needs to keep slowing the clean software story investors want.
software profits were up 57% in the first nine months, so anything that clouds the software case hits more than sentiment. it hits one of the main reasons investors pay this multiple.
med
headline EPS looks cleaner than economic reality
the switch to non-gaap presentation excludes large amortization and stock compensation charges. that does not make the business weak, but it does make simple EPS comparisons less clean than they look at first glance.
reported full-year EPS moved from $1.29 to $6.75. some of that is real improvement. some of it is presentation. if investors trust the quality of earnings less, the multiple compresses.
med
this stock still trades with real volatility
price stability is 35 / 100 and earnings predictability is 45 / 100. that is not bunker-stock behavior, even with a $1.89T market cap.
you are getting a company with huge profit power, but not the smooth ride people associate with trillion-dollar names. semis still remind investors what cyclicality feels like.
At $401.10 and 59.4x trailing earnings, Broadcom does not need a disaster to rerate. It just needs the bridge from $63.9B to $85B in revenue to look less certain.
source: institutional data · regulatory filings · risk analysis
Pay attention to
key metric
the bridge from $63.9B to $85B
that revenue jump is the market's working assumption. if estimates wobble, the multiple will feel a lot less comfortable.
risk
VMware litigation headlines
the $69B deal matters because it changed the business mix. legal friction matters because software profitability now matters more.
ownership
institutions are still net buyers
three straight quarters of net buying is support. if that reverses while estimates flatten, you should pay attention.
next report
does growth stay premium
quarterly revenue already sits at $19.3B. the next update needs to show the AI and software story still working together, not separately.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak, they still like it.
risk profile
average
stability score 3 — this sits near the middle of the market on risk, but the stock price does not behave like a utility.
chart momentum
average
technical score 3 — no strange signal here. the tape is constructive, not euphoric.
earnings predictability
45 / 100
earnings predictability is below what you want from a 59.4x stock. translation: expect revisions, debate, and occasional whiplash.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 2,061 buyers vs. 1,851 sellers in 3q2025. total institutional holdings: 3.6B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$218
$673
$401
current price
$446
target midpoint · +11% from current · 3-5yr high: $673
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