A Business at a Glance
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Broadcom Inc.
AVGO
$1.9T
Mkt Cap
$381.92
-2.69%
Broadcom Inc. (AVGO) has a current P/E ratio of 80.1, compared to its historical median P/E of 37.8. The stock is currently considered Expensive based on its historical valuation range.
Broadcom Inc. (AVGO) has a 5-year average return on invested capital (ROIC) of 20.4%. This indicates strong capital allocation and a potential competitive advantage.
Broadcom Inc. (AVGO) has a market capitalization of $1.8T. It is classified as a mega-cap stock.
Yes, Broadcom Inc. (AVGO) pays a dividend with a trailing twelve-month yield of 0.62%. The company also returns capital through share buybacks, with a buyback yield of 0.13%.
Based on historical P/E analysis, Broadcom Inc. (AVGO) appears expensive. The current P/E of 80.1 is 112% above its historical median of 37.8. The estimated fair value CAGR (P/E method) is 21.1%.
Broadcom Inc. (AVGO) operates in the Semiconductors & Related Devices industry, within the Technology sector.
Broadcom Inc. (AVGO) reported annual revenue of $63.9 billion in its most recent fiscal year, based on SEC EDGAR filings.
Broadcom is a global semiconductor and infrastructure software company with a 60-year heritage spanning Bell Labs, Lucent, and Hewlett-Packard, assembled through strategic acquisitions including LSI, Broadcom Corporation, Brocade, CA, Symantec, and VMware. The company operates two primary segments: Semiconductor Solutions and Infrastructure Software. The Semiconductor Solutions segment designs and manufactures complex digital and mixed-signal devices serving five major end markets—Networking Connectivity, Wireless Device Connectivity, Servers and Storage Systems, Broadband, and Industrial—with products including custom silicon accelerators (XPUs), Ethernet switching and routing silicon, network interface controllers, physical layer devices, optical components, RF front-end modules, storage controllers, and industrial connectivity solutions. The Infrastructure Software segment provides enterprise IT modernization and security solutions through five portfolios: Private Cloud (VMware Cloud Foundation and related services), Mainframe Software, Cybersecurity, Enterprise Software, and Fibre Channel SAN Management, serving most Fortune 500 companies and government agencies. Broadcom's business model combines high-performance semiconductor design and integration capabilities with software-defined infrastructure, generating revenue through both transactional semiconductor sales and recurring software subscriptions and support contracts; the company maintains engineering depth across the U.S., Asia, and Europe and differentiates through technology leadership, custom silicon development for hyperscalers and AI frontier model companies, and integrated hardware-software solutions that address data center, networking, and enterprise modernization requirements.
【AI infrastructure acceleration】 Management expects AI semiconductor revenue to continue accelerating through fiscal 2027 and beyond, with six core customers deploying custom XPUs and networking silicon at multi-gigawatt scale; Google has committed to a long-term agreement with expected 3 GW deployment through end of 2028, while other customers including Anthropic and OpenAI are ramping volumes in 2026 and 2027. The company anticipates operating leverage to support stable operating margins despite AI revenue mix growth, and expects infrastructure software to sustain mid-to-high single-digit percentage growth driven by VMware expansion and enterprise cloud adoption. Management notes that while AI revenue growth will dominate, non-AI semiconductor revenue is expected to stabilize and gradually recover, with broadband showing particular strength; the company is investing in advanced packaging, wafer supply, and optical component capabilities to support the anticipated demand surge.
| Metric | Target | Period |
|---|---|---|
| Q3 FY2026 Consolidated Revenue | $29.4 billion | Q3 FY2026 |
| Q3 FY2026 AI Semiconductor Revenue | $16 billion | Q3 FY2026 |
| Q3 FY2026 Semiconductor Revenue | $20.5 billion | Q3 FY2026 |
| Q3 FY2026 Infrastructure Software Revenue | $8.9 billion | Q3 FY2026 |
| Q3 FY2026 Operating Margin | approximately 67% | Q3 FY2026 |
| Q3 FY2026 Adjusted EBITDA Margin | approximately 68% | Q3 FY2026 |
| FY2026 AI Semiconductor Revenue | $56 billion | FY2026 |
| FY2027 AI Semiconductor Revenue | in excess of $100 billion | FY2027 |
| Google TPU Deployment Target | 3 GW through end of 2028 | through end of 2028 |
| Google Initial TPU Order | 1 GW | delivery starting second half of 2027 |
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 0 | 63.9B | 51.6B | 35.8B | 33.2B | 27.4B |
| Net Income | 0 | 23.1B | 5.9B | 14.1B | 11.2B | 6.4B |
| EPS | $0.00 | $4.77 | $1.23 | $3.01 | $2.69 | $1.50 |
| Free Cash Flow | 0 | 26.9B | 19.4B | 17.6B | 16.3B | 13.3B |
| ROIC | - | 20.0% | 9.7% | 30.7% | 25.8% | 15.6% |
| Gross Margin | - | 67.8% | 63.0% | 68.9% | 66.5% | 61.4% |
| Debt/Equity | 0.00 | 0.80 | 1.00 | 1.63 | 1.74 | 1.59 |
| Dividends/Share | $0.00 | $2.36 | $2.11 | $1.63 | $1.61 | $1.44 |
| Operating Income | 0 | 25.5B | 13.5B | 16.2B | 14.2B | 8.5B |
| Operating Margin | 0.0% | 39.9% | 26.1% | 45.2% | 42.8% | 31.0% |
| ROE | 0.0% | 31.0% | 12.9% | 60.3% | 47.1% | 26.4% |
| Shares Outstanding | 4,758M | 4,848M | 4,793M | 4,681M | 4,179M | 4,291M |
Broadcom Inc. passes 7 of 9 quality checks, indicating strong fundamentals.
Broadcom Inc. trades at 80.1x trailing earnings, compared to its 15-year median P/E of 37.8x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 68.8x vs a median of 16.4x. The company's 5-year average ROIC is 20.4% with a gross margin of 65.5%. Total shareholder yield (dividends + buybacks) is 0.8%. At current prices, the estimated annualized return to fair value is +14.1%.
Broadcom Inc. (AVGO) has a net profit margin of 36.2%. This is a strong margin indicating high profitability.
Broadcom Inc. (AVGO) generated $26.9 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Broadcom Inc. (AVGO) has a debt-to-equity ratio of 0.80. This indicates moderate leverage.
Broadcom Inc. (AVGO) reported earnings per share (EPS) of $4.77 in its most recent fiscal year.
Broadcom Inc. (AVGO) has a return on equity (ROE) of 31.0%. This indicates the company generates strong returns for shareholders.
Broadcom Inc. (AVGO) has a 5-year average gross margin of 65.5%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 10 years of financial data for Broadcom Inc. (AVGO), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Broadcom Inc. (AVGO) has a book value per share of $16.77, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects AI semiconductor revenue to continue accelerating through fiscal 2027 and beyond, with six core customers deploying custom XPUs and networking silicon at multi-gigawatt scale; Google has committed to a long-term agreement with expected 3 GW deployment through end of 2028, while other customers including Anthropic and OpenAI are ramping volumes in 2026 and 2027. The company anticipates operating leverage to support stable operating margins despite AI revenue mix growth, and expects infrastructure software to sustain mid-to-high single-digit percentage growth driven by VMware expansion and enterprise cloud adoption. Management notes that while AI revenue growth will dominate, non-AI semiconductor revenue is expected to stabilize and gradually recover, with broadband showing particular strength; the company is investing in advanced packaging, wafer supply, and optical component capabilities to support the anticipated demand surge.
Based on recent SEC filings and earnings calls, Broadcom Inc. (AVGO) has provided the following forward guidance: Q3 FY2026 Consolidated Revenue: $29.4 billion (Q3 FY2026); Q3 FY2026 AI Semiconductor Revenue: $16 billion (Q3 FY2026); Q3 FY2026 Semiconductor Revenue: $20.5 billion (Q3 FY2026); Q3 FY2026 Infrastructure Software Revenue: $8.9 billion (Q3 FY2026); Q3 FY2026 Operating Margin: approximately 67% (Q3 FY2026), plus 8 additional metrics.
| AI Semiconductor Purchase Orders Received | $6 billion | as of Q2 FY2026 |
| Q3 FY2026 Non-AI Semiconductor Revenue | approximately $4.5 billion | Q3 FY2026 |
| Q3 FY2026 Consolidated Gross Margin | approximately 74% | Q3 FY2026 |
Q3 FY2026 Consolidated Revenue (Q3 FY2026): “For Q3 2026, we expect our consolidated revenue to grow to $29.4 billion, up 84% year-on-year.”
Q3 FY2026 AI Semiconductor Revenue (Q3 FY2026): “Within this, we expect Q3 AI semiconductor revenue of $16 billion, up over 200% year-on-year.”
Q3 FY2026 Semiconductor Revenue (Q3 FY2026): “In summary, we expect Q3 semiconductor revenue to be $20.5 billion, up 124% year-over-year.”
Q3 FY2026 Infrastructure Software Revenue (Q3 FY2026): “For Q3, we forecast software revenue to be approximately $8.9 billion, up 31% year-over-year.”
Q3 FY2026 Operating Margin (Q3 FY2026): “We expect operating margin to be stable at approximately 67% of revenue”
Q3 FY2026 Adjusted EBITDA Margin (Q3 FY2026): “and adjusted EBITDA to be at approximately 68% of revenue.”
FY2026 AI Semiconductor Revenue (FY2026): “For the full year 2026, we expect to achieve AI semiconductor revenue of $56 billion, up approximately 180% from fiscal 2025.”
FY2027 AI Semiconductor Revenue (FY2027): “We expect this momentum to continue into fiscal year 2027 and reiterate our AI semiconductor revenue guidance to be in excess of $100 billion.”