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Broadcom Inc AVGO

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Stock XNAS Rating as of
$328.75 −15.58 (4.52%)
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Wide-Moat Broadcom Is an AI Chip Titan Across Networking and Custom Compute

William Kerwin

Broadcom is an amalgamation of high-value, differentiated and moaty chip and software businesses. Put simply, Broadcom is a prolific generator of cash flow. It is a terrific aggregator of firms, big and small. Its ability to acquire and streamline generates strong profits and cash flow and fuels robust shareholder returns. We laud the company for its execution and operating efficiency, which build upon its large organic investment and help it to outperform its end markets organically.

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Price vs Fair Value

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AVGO is trading at a LOCK|!lgLB^ premium.
Price
$328.75
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Broadcom is best-of-breed in custom AI accelerators, boasting the largest customer in Google and layering new customers in like Anthropic and OpenAI. Rising AI spending portends immense growth.

Bears

Broadcom’s chip business bears significant customer concentration, with a small handful of large AI customers driving the bulk of revenue and future growth.

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Trading Information

Previous Close Price
$344.33
Day Range
$328.58–339.59
52-Week Range
$289.96–495.00
Bid/Ask
$330.20 / $330.27
Shares Outstanding
4.77B
Market Cap
$1.57T
Volume/Avg
30M / 23M

Key Statistics

Price/Earnings (Normalized)
33.68
Price/Sales
18.02
Dividend Yield (Trailing)
0.79%
Dividend Yield (Forward)
0.79%
Dividend Payment Schedule
Mar, Jun, Sep, Dec
Total Yield
1.32%

Company Profile

Broadcom is one of the largest semiconductor companies in the world and has also expanded into infrastructure software. Its semiconductors primarily serve computing and networking, with custom AI accelerators now accounting for the bulk of the business. It is primarily a fabless designer, but holds some manufacturing in-house, such as for its best-of-breed film bulk acoustic resonator filters that sell into the Apple iPhone. In software, it sells virtualization, infrastructure, and security software to large enterprises, financial institutions, and governments. Broadcom is the product of consolidation. Its businesses are an amalgamation of former companies like legacy Broadcom and Avago Technologies in chips, as well as VMware, Brocade, CA Technologies, and Symantec in software.
Sector
Technology
Industry
Semiconductors
Stock Style Box
Large Growth
Total Number of Employees
33,000
Website
https://www.broadcom.com

Competitors

Valuation

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Metric
AVGO
MRVL
NVDA
Price/Earnings (Normalized)
 33.6869.0530.54
Price/Book Value
 15.6911.0322.58
Price/Sales
 18.0221.3817.24
Price/Cash Flow
 30.9159.7829.83
Price/Earnings
AVGO
MRVL
NVDA

Financial Strength

Metric
AVGO
MRVL
NVDA
Quick Ratio
 2.152.462.92
Current Ratio
 2.503.174.59
Interest Coverage
 13.883.55492.39
Quick Ratio
AVGO
MRVL
NVDA

Profitability

Metric
AVGO
MRVL
NVDA
Return on Assets (Normalized)
 27.66%12.29%78.47%
Return on Equity (Normalized)
 57.31%18.62%106.66%
Return on Invested Capital (Normalized)
 34.36%7.89%95.82%
Return on Assets
AVGO
MRVL
NVDA

Semiconductors Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
NVIDIA Corp
NVDA
LOCK|wZdfc?>LOCK|dQv$5T
 Taiwan Semiconductor Manufacturing Co Ltd ADR
TSM
LOCK|<%JMrC&LOCK|%zN$2T
 Micron Technology Inc
MU
LOCK|DSJ$b$LOCK|%d$994B
 Advanced Micro Devices Inc
AMD
LOCK|h>GP#^x^LOCK|crv<$863B
 SK hynix Inc ADR
SKHY
LOCK|h!v^T#$LOCK|@J$$691B
 Intel Corp
INTC
LOCK|$X@q&vNLOCK|^?!$475B
 Texas Instruments Inc
TXN
LOCK|z!FLvX^!LOCK|x&$252B
 ARM Holdings PLC ADR
ARM
LOCK|N$@BM&LOCK|C^$243B
 Marvell Technology Inc
MRVL
LOCK|?%FKy!^rLOCK|lx!b$205B

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