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Broadcom Inc. (AVGO)

POSITIVE
TechnologySemiconductorsUnited States

Fondamental

73

Prix

$355.72

Capitalisation boursière

$1.71T

Partie 1 · Ce que vaut l'entreprise

Vue d'ensemble

Broadcom sells two very different things under one roof: custom and networking chips that go into smartphones, data-centre switches and the custom AI accelerators it co-designs for a few large cloud companies, and enterprise software — largely VMware, acquired in 2023 — that lets companies run their own private data centres. The chip side sells hardware; the software side sells subscriptions to run infrastructure most large companies already depend on.

Comment l'entreprise gagne de l'argent

Semiconductor revenue is booked when chips ship and depends on how much capacity customers are ordering, including multi-year custom AI chip programmes for a handful of cloud companies. Infrastructure Software revenue is increasingly subscription-based since VMware moved its licensing to that model, which makes it steadier and more predictable than the chip business, and it now carries software-like margins that pull up the company's overall profitability.

Chiffre d'affaires par segment

Semiconductor Solutions57.7%

Networking chips, custom AI accelerators and other semiconductors sold to data-centre, networking and smartphone customers.

Infrastructure Software42.3%

Enterprise software, dominated by VMware, sold mainly as subscriptions to companies running private data centres.

Avantage concurrentiel

Coûts de changement · Large

VMware's virtualization software sits underneath thousands of companies' data-centre applications, and ripping it out means re-architecting how those applications run — a project few companies choose to undertake. On the chip side, custom AI accelerators are co-designed over years with specific cloud customers, which creates its own multi-year lock-in for as long as that partnership lasts.

Ce qui stimule la demande

Modérément cyclique

Infrastructure Software revenue is fairly steady, renewing on subscription terms tied to systems companies are not going to rip out quickly. Semiconductor revenue is far more cyclical, tracking data-centre and smartphone order cycles that can swing from shortage to oversupply within a year or two, so the combined business is less volatile than a pure chip company but still meaningfully cyclical.

Principaux risques

  • Concentration in a few large customers — A meaningful share of semiconductor revenue, including custom AI chips, comes from a small number of very large customers whose order changes move results materially.
  • Integration and retention risk after the VMware acquisition — Moving VMware customers to subscription pricing has raised costs for some of them, and Broadcom's post-acquisition pricing and support changes could push customers to evaluate alternatives over time.
  • Export controls and geopolitics — Restrictions on selling advanced chips to certain countries, and Broadcom's reliance on manufacturing capacity concentrated in Asia, expose the semiconductor business to rules that can change with little warning.
  • Cyclicality of chip demand — Networking and custom AI chip demand can fall quickly if data-centre customers pause spending or shift capacity plans, and Broadcom carries the cost of capacity it commits to well before orders are confirmed.

Les arguments en faveur

Buyers argue that Broadcom pairs a fast-growing, high-margin custom AI chip business with a large, sticky software franchise in VMware, giving it both AI-driven upside and a stable cash-generating base that a pure chip company lacks.

Les arguments contre

Sellers fear that AI chip revenue is concentrated in very few customers who could shift designs elsewhere, that VMware price increases are pushing some customers to look for alternatives, and that the combined business trades at a valuation that assumes both halves keep growing together indefinitely.

Written by the editors, published on 18 août 2026

Direct competitors

Who this company fights with for the same customers

Compare

Generated on 23 août 2026 with claude-opus-5 — shared with all users

P/E: 78.8Score: 70Market cap: $200.58B

The closest pure-play rival, bidding against Broadcom for the same hyperscaler contracts in custom AI accelerators (XPUs), Ethernet switching silicon and optical interconnect DSPs.

P/E: 31.9Score: 75Market cap: $5.05T

Competes for the same data-centre AI budget, offering off-the-shelf GPUs and its own Spectrum-X/InfiniBand networking as an alternative to Broadcom's custom accelerators and Tomahawk switch chips.

P/E: 18.1Score: 69Market cap: $166.46B

Rival supplier of RF front-end and Wi-Fi/Bluetooth connectivity chips to the same smartphone makers that account for Broadcom's wireless revenue.

P/E: 36.6Score: 69Market cap: $434.46B

Designs its own Silicon One switching chips for the data-centre and service-provider switches that would otherwise carry Broadcom's Tomahawk or Jericho silicon.

P/E: 69.5Score: 70Market cap: $18.02B

Targets the same enterprise private-cloud budget as VMware Cloud Foundation, actively courting the customers unsettled by Broadcom's subscription-only licensing.

MediaTek Inc. (聯發科技股份有限公司)2454

Competes on price and design wins in Wi-Fi connectivity, set-top box and broadband access chips sold to the same consumer-electronics and telecom-operator customers.

Bilan & Liquidités

Chiffre d'affaires

$75.47B

12 derniers mois (au 03/05/2026)

Résultat net

$29.32B

12 derniers mois (au 03/05/2026)

Flux de trésorerie libre

$26.91B

Capitaux propres totaux

$81.29B

Passif total

$89.80B

Ratio de liquidité général

2.24

Couverture des intérêts

10.41

Dette/EBITDA

1.54

Bénéfice par action

Chiffre d'affaires & Résultat net

Flux de trésorerie libre

Décomposition du résultat

État historique

Marges dans le temps

La dette dans le temps

Le poids de la dette

Grille de la croissance

Croissance — Chiffre d'affaires

Estimation de la juste valeur

Justement valorisé

Juste valeur

$365.73

Prix actuel

$355.72

Marge de sécurité

+2.7%

Fourchette de juste valeur

$237.73 - $493.74

Méthodes d'estimation

Analyst Target:$526.30
DCF:$294.59
PE-based:$134.77
Graham Growth:$309.39
EPV:$42.26
Consensus des analystes:Achat fort (51B / 5H / 0S)
Dernière surprise sur les résultats:-0.24%

Indicateurs de valorisation

Ratio P/E

59.69

ROE

28.4%

Ratio P/B

19.46

P/FCF

52.10

Marge brute

68.3%

ROIC

16.1%

Radar de rentabilité

Value Creation (Economic Moat)

ROIC

16.1%

WACC

12.3%

ROIC − WACC

+3.9 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Critères d'analyse fondamentale

Réussi (20)

  • EPS shows upward trend
  • Price CAGR 35.49%
  • ROIC 16.1%
  • Gross Margin 68.3%
  • Debt/Equity ratio
  • Operating Margin 43.4%
  • Positive Free Cash Flow
  • CapEx intensity
  • Current Ratio
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • ROE 36.4%
  • Revenue Growth 5Y 21.7%
  • Analyst Consensus 91% Buy
  • PEG Ratio 1.47
  • Earnings Quality (OCF/NI) 1.15
  • Share Dilution 1.2%
  • Net Margin Trend 38.8% vs 22.6%
  • Piotroski F-Score 8/9

Échoué (6)

  • P/FCF 52.10
  • P/B Ratio 19.46
  • Low reliance on intangibles
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Earnings Surprise avg 0.5%

Indisponible (1)

  • Dividend Payout NaN%

Score F de Piotroski

8/9

Santé financière solide

score
criteria

Qualité des bénéfices

1.15

Qualité élevée : bénéfices soutenus par la trésorerie

Dilution du capital

1.2%

Le nombre d'actions est stable

Gouvernance

Équipe dirigeante

NomTitreÂge
Mr. Mark D. Brazeal J.D.Chief Legal & Corporate Affairs Officer57
Dr. Charlie B. Kawwas Ph.D.President of Semiconductor Solutions54
Ms. Kirsten M. SpearsConsultant61
Ms. Amie Thuener O'TooleChief Financial Officer50
Mr. Alan DavidsonChief Information Officer-
Mr. Ji YooDirector of Investor Relations-
Ms. Jill TurnerVice President of Human Resources-
Mr. Frank OstojicSenior VP & GM of ASIC Products Division-
Mr. Rich NelsonSenior VP & GM of Broadband Video Group-
Mr. Ram VelagaSenior VP & GM of Core Switching Group-

Risque d'audit

3

Risque du conseil

3

Risque de rémunération

10

Risque droits des actionnaires

3

Partie 2 · Le prix et le moment d'entrer

Cette partie ne dit pas si l'entreprise vaut la peine : elle aide à choisir quand l'acheter, une fois que les fondamentaux vous ont convaincu. À l'intérieur : analyse technique, potentiel, baisses historiques, exposition gamma.

Latest News

Recent headlines for AVGO, sourced from Markets Gazette.

  • 1d agoNEGATIVE
    Broadcom, maxi-finanziamenti da 60 miliardi per l'intelligenza artificiale fa schizzare il credit risk

    Bond traders have increased credit risk indicators for Broadcom following substantial financing aimed at artificial intelligence development. This news suggests that while Broadcom is investing heavily in AI, the market perceives an elevated risk associated with its debt obligations. Investors should monitor the company's debt levels and its ability to service this debt, especially as AI investments require significant capital outlay and have uncertain long-term returns. The increased credit risk may lead to higher borrowing costs for Broadcom and could impact its overall financial health.

  • 4d agoPOSITIVE
    Broadcom: azioni in rialzo grazie a finanziamenti AI e ottimismo degli analisti

    Broadcom Inc. shares rose over 1% on Friday, defying a broader semiconductor sector downturn. This rebound follows a challenging week where the stock dipped after Marvell Technology announced a deal with Google for custom AI chips. The Marvell-Google agreement, which includes an option for Alphabet to acquire up to $12.2 billion in Marvell shares, had raised concerns about Broadcom's position as Google's primary custom chip partner and prompted a re-evaluation of the AI accelerator competitive landscape. However, positive signals emerged on Friday, suggesting renewed investor confidence in Broadcom's AI strategy and market standing.

  • 4d agoNEUTRAL
    Broadcom in trattative per un finanziamento da oltre 60 miliardi di dollari

    Broadcom Inc. is reportedly in discussions with a consortium of lenders to secure over $60 billion in debt financing, according to Bloomberg. This substantial debt raise is likely intended to support significant corporate activities, potentially including acquisitions or major capital expenditures. While the specific use of funds is not detailed, such a large financing operation could signal aggressive strategic moves by the company. Investors will be closely monitoring the terms and purpose of this debt, as it could impact Broadcom's financial leverage and future growth trajectory.

  • 5d agoPOSITIVE
    Broadcom Seeking $60B in AI Debt Deal

    Broadcom Inc. is reportedly in discussions with lenders to secure over $60 billion in debt financing, a significant move aimed at supporting its AI chip business. This substantial debt package is expected to benefit AI startup Anthropic PBC and potentially other companies involved in the artificial intelligence ecosystem. The financing structure may also include a junior debt tranche of approximately $30 billion. For investors, this indicates Broadcom's aggressive strategy to fund its AI ambitions, potentially solidifying its market position and driving future growth in the high-demand AI sector.

  • 6d agoNEGATIVE
    Azioni Broadcom in calo per l’accordo Marvell-Google sui chip AI: cosa preoccupa gli investitori?

    Broadcom Inc. shares experienced a decline of approximately 5% at the market open following the announcement of a strategic partnership between Marvell Technology and Google. Marvell will assist Google in developing custom AI chips, with Google also securing an option to acquire up to $12.2 billion in Marvell stock. This development raises concerns for Broadcom investors regarding its primary role as Google's partner for custom AI chips, especially given the escalating demand for specialized processors. The deal potentially shifts market dynamics in the crucial AI chip sector.

  • 7d agoPOSITIVE
    Broadcom -21% dal picco di giugno: perché un rialzista vede ancora +55%

    Broadcom Inc. (NASDAQ: AVGO) has seen a significant 21% drop from its early June peak, despite maintaining the fastest AI growth in the semiconductor industry. The stock closed at $380, down 3.2% in its latest session, well below its June 2nd record of $481.57. This decline accelerated after its fiscal second-quarter results, which, while strong, did not exceed exceptionally high Wall Street expectations. Nova Capital, a TipRanks contributor, maintains a bullish outlook with a price target of $585.90, suggesting a potential 54% upside from Tuesday's close. The analyst believes the market has overreacted to the earnings report, overlooking Broadcom's sustained AI leadership and growth trajectory.

  • 7/22/2026POSITIVE
    Banks Start Trading Part of $35 Billion Chip Funding Package

    Wall Street banks have initiated trading on an initial tranche of a $35 billion financing package aimed at supporting Broadcom Inc. and Anthropic PBC's AI infrastructure expansion. This marks the largest private credit deal on record and is now being extended to a broader investor base. The funding signifies significant capital inflow into AI development, potentially accelerating innovation and market growth for companies like Broadcom. Investors may view this as a positive indicator of strong demand and future revenue potential in the AI sector.

via Markets Gazette