AVGO Broadcom Inc.
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Daily prices, adjusted for splits. P/E and P/S value each day on the results published by then; a gap in P/E means the trailing year had no profit.
Semiconductors · Palo Alto, CA · 33,000 employees · broadcom.com
Broadcom designs and supplies semiconductor components and enterprise infrastructure software. It generates revenue by providing hardware for networking, wireless connectivity, and data storage, alongside software platforms for cloud management, mainframe systems, and cybersecurity. Its offerings serve data centers, telecommunications providers, and broader enterprise environments.
Bull case
The business converts a substantial portion of its revenue into free cash flow after stock-based compensation, underpinned by returns on capital that exceed its cost of capital. In addition, its contracted backlog is expanding faster than revenue as it supplies critical components consumed by artificial intelligence workloads.
- The price assumes about +21% a year cash-flow growth; it delivered +26% a year over three years.
- Turns 35% of revenue into free cash after stock pay.
- Returns on capital run well above its cost of capital.
- Annual revenue growth rose from +28% to +49%.
Bear case
The business depends on the ongoing build-out of artificial intelligence infrastructure continuing, leaving it vulnerable to shifts in capital spending across that cycle.
- Trades at the 72nd percentile of its own valuation history.
- The share price trend is still falling.
- Its sector cycle (AI Infrastructure CapEx) is in saturation.
Features
- V-WIDE-MOAT Wide moat Returns on capital run well above its cost of capital.
- V-ACCELERATING Growth accelerating Annual revenue growth rose from +28% to +49%. Shared by most companies we track
- F-BACKLOG-VELOCITY Backlog outpacing revenue Contracted backlog grew +552% over the year, against +49% for revenue.
- F-UPSIDE Analyst upside Analysts' average target is 47% above the price.
AI impact
Supplies what AI runs on Tailwind
The company sells custom computing chips and networking equipment used to run artificial intelligence workloads in data centers. Its business benefits from strong demand for these infrastructure products, but it faces risk if major customers slow, delay, or cancel their large-scale artificial intelligence build-outs.
Where AI helps it
- Sells what AI workloads consume
Where AI could hurt it
- Depends on the AI build-out continuing
In the company's words
Our semiconductor and semiconductor-based solutions also enable our customers to build and deploy AI data center infrastructure for their training and inference workloads and manage the movement of data across their AI network infrastructure based on open, flexible, standards-based Ethernet.
The growth of AI is creating pressure on the semiconductor industry to timely design, manufacture and deliver semiconductor products and solutions to meet customer demand for computing power and AI infrastructure.
Assessed by AI from the company's own annual report filed 18 Dec 2025 and quarterly report filed 10 Sep 2026. A reading of the business, not a forecast or a recommendation.
Valuation position
AVGO is at the 72nd percentile of its own valuation history. Depending on how far back you look, it ranges from the 54th to the 72nd percentile. This is a relative measurement, not a price target or recommendation, and it assumes the business is still the one its history describes.
Price ladder
The measured price sits in the Above reference zone. These are reference zones, not buy instructions or forecasts that the prices will be reached.
What the price assumes
The measured price implies roughly +21.4% annual cash-flow growth, between +13.8% and +27.0% under other reasonable assumptions. Over the last three years it delivered +25.9% a year.
An estimate that depends on its assumptions, not a forecast.
Quality versus peers
Each dimension is shown on its own; they are not combined into a score.
Current analyst snapshot
Shown for reference only; not used in any measurement.
What would have to break
- Not triggered — Revenue decline
- Not triggered — Margin break
- Not available — Cash burn with rising debt
- Not triggered — Heavy dilution
- Not triggered — Warning language in filings
News
No recent brief on this company.