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Broadcom
(NASDAQ:AVGO)
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Rating:78Outperform
Price Target:
$393.00
▲(10.16% Upside)
Action:Reiterated
Date:09/15/26
The score is driven primarily by outstanding financial performance (high margins and strong free-cash-flow generation) and a very bullish earnings outlook centered on rapid AI semiconductor growth and raised guidance. Offsetting these positives are weak technicals (price below major moving averages with bearish momentum) and a relatively expensive valuation (high P/E with a modest dividend yield).
Positive Factors
AI semiconductor growth and visibility
Broadcom has unusually strong multi-year visibility in AI semiconductors, supported by rapid revenue growth, customer commitments, and expanding custom-accelerator deployments. This creates a durable growth engine across networking and compute while reinforcing the company’s strategic role in hyperscale infrastructure.
Negative Factors
AI product mix is pressuring gross margins
Rapid AI growth is shifting Broadcom’s mix toward XPUs with higher memory content, creating sustained pressure on consolidated gross margins. Even with strong revenue expansion, lower unit economics could limit incremental profit conversion and make future earnings more dependent on scale and operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
AI semiconductor growth and visibility
Broadcom has unusually strong multi-year visibility in AI semiconductors, supported by rapid revenue growth, customer commitments, and expanding custom-accelerator deployments. This creates a durable growth engine across networking and compute while reinforcing the company’s strategic role in hyperscale infrastructure.
Read all positive factors
Broadcom Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue across different business units, highlighting which segments drive growth and profitability, and indicating strategic focus areas.
Analyzes revenue across different business units, highlighting which segments drive growth and profitability, and indicating strategic focus areas.
Data provided by:
The Fly
The FlyBroadcom (AVGO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.73T
Dividend Yield0.74%
Average Volume (3M)22.07M
Price to Earnings (P/E)42.8
Beta (1Y)2.38
Revenue Growth48.69%
EPS Growth99.97%
CountryUS
Employees33,000
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)8.06
Shares Outstanding4,773,630,000
10 Day Avg. Volume27,450,099
30 Day Avg. Volume22,072,428
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)21.01
Price to Sales (P/S)26.74
P/FCF Ratio63.47
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$519.21Price Target Upside45.54% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering30
EPS Forecast (FY)11.67
Revenue Forecast (FY)$106.01B
Broadcom Business Overview & Revenue Model
Company Description
Broadcom Inc. is a prominent global technology enterprise focused on the innovation, development, and supply of advanced semiconductor solutions and critical infrastructure software. The company's headquarters are situated in San Jose, California,...
How the Company Makes Money
Broadcom makes money primarily by selling (1) semiconductor products and (2) infrastructure software. Semiconductor revenue is generated from shipping chips and related solutions to OEMs and hyperscale/cloud customers, with major demand drivers ti...
Broadcom Earnings Call Summary
Earnings Call Date:Sep 02, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Dec 10, 2026
Earnings Call Sentiment Positive
The call was strongly positive, driven by record company-wide financial results, triple-digit AI semiconductor growth, expanding custom-accelerator deployments, strong customer commitments, and substantial fiscal 2027 and fiscal 2028 AI revenue visibility. The principal challenges discussed were declining gross margins from AI product mix, wireless softness, supply-chain limitations, and the timing and financing requirements associated with large-scale data-center deployments.Positive Updates
Record Revenue, Operating Income, and Free Cash Flow
Broadcom delivered a record third quarter, with consolidated revenue of $29.6 billion, up 86% year-over-year; operating income of $20.1 billion, up 92%; and record free cash flow of $13.7 billion, representing 46% of revenue.
Negative Updates
Gross Margin Declined from Product Mix
Q3 consolidated gross margin was 75% of revenue, down 210 basis points sequentially, as AI semiconductor revenue represented a greater proportion of the total mix. Management corrected the Q3 Semiconductor Solutions segment gross margin to approximately 67%.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Revenue, Operating Income, and Free Cash Flow
Broadcom delivered a record third quarter, with consolidated revenue of $29.6 billion, up 86% year-over-year; operating income of $20.1 billion, up 92%; and record free cash flow of $13.7 billion, representing 46% of revenue.
Read all positive updates
Company Guidance
For Q4 fiscal 2026, Broadcom expects consolidated revenue of $34.8 billion, up 93% year-on-year, semiconductor revenue of approximately $26.1 billion, up 136% year-on-year, AI semiconductor revenue of $21.7 billion, up over 236% year-on-year, non-AI semiconductor revenue of approximately $4.3 billion, up 5% sequentially, and infrastructure software revenue of approximately $8.7 billion, up 24% -- 25% year-on-year; consolidated gross margin is expected to be approximately 73%, operating margin approximately 66%, the non-GAAP tax rate for Q4 and fiscal year 2026 approximately 16%, non-GAAP diluted share count approximately 4.94 billion shares, excluding the impact of potential share repurchases, and capital expenditures $1.4 billion. Fiscal 2026 AI revenue is expected to be $58 billion, up 186% year-upon-year and above prior guidance of $56 billion; AI revenue is expected to double again to approximately $115 billion in fiscal 2027 and double again in fiscal 2028 to $230 billion, while Broadcom is very much on target to exceed $30 in earnings per share in fiscal 2028.Broadcom Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
78
Positive
Cash Flow
94
Very Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 89.10B | 63.89B | 51.57B | 35.82B | 33.20B | 27.45B |
| Gross Profit | 60.29B | 43.29B | 32.51B | 24.69B | 22.09B | 16.84B |
| EBITDA | 52.26B | 34.71B | 23.88B | 20.55B | 19.16B | 14.69B |
| Net Income | 38.27B | 23.13B | 5.89B | 14.08B | 11.49B | 6.74B |
Balance Sheet | ||||||
| Total Assets | 188.15B | 171.09B | 165.65B | 72.86B | 73.25B | 75.57B |
| Cash, Cash Equivalents and Short-Term Investments | 23.98B | 16.18B | 9.35B | 14.19B | 12.42B | 12.16B |
| Total Debt | 59.42B | 65.14B | 67.57B | 39.65B | 39.98B | 40.27B |
| Total Liabilities | 88.46B | 89.80B | 97.97B | 48.87B | 50.54B | 50.58B |
| Stockholders Equity | 99.69B | 81.29B | 67.68B | 23.99B | 22.71B | 24.99B |
Cash Flow | ||||||
| Free Cash Flow | 39.40B | 26.91B | 19.41B | 17.63B | 16.31B | 13.32B |
| Operating Cash Flow | 40.65B | 27.54B | 19.96B | 18.09B | 16.74B | 13.76B |
| Investing Cash Flow | -1.80B | -580.00M | -23.07B | -689.00M | -667.00M | -245.00M |
| Financing Cash Flow | -25.59B | -20.13B | -1.73B | -15.62B | -15.82B | -8.97B |
Broadcom Technical Analysis
Negative
356.74
Price Trends
383.09
Negative
396.40
Negative
369.44
Negative
Market Momentum
-7.49
Negative
42.24
Neutral
61.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVGO, the sentiment is Negative. The current price of 356.74 is below the 20-day moving average (MA) of 367.49, below the 50-day MA of 383.09, and below the 200-day MA of 369.44, indicating a bearish trend. The MACD of -7.49 indicates Negative momentum. The RSI at 42.24 is Neutral, neither overbought nor oversold. The STOCH value of 61.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AVGO.
Broadcom Risk Analysis
Broadcom disclosed 42 risk factors in its most recent earnings report. Broadcom reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Broadcom Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
88 Outperform | $5.26T | 26.54 | 110.11% | 0.25% | 83.38% | 124.42% | |
79 Outperform | $207.04B | 71.77 | 16.22% | 0.11% | 30.62% | ― | |
78 Outperform | $1.73T | 42.77 | 43.91% | 0.74% | 48.69% | 99.97% | |
74 Outperform | $842.57B | 125.23 | 10.07% | ― | 39.54% | 125.82% | |
69 Neutral | $191.11B | 20.52 | 37.33% | 2.01% | 1.87% | -16.70% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $544.15B | -46.06 | -10.76% | 2.63% | 7.47% | 55.56% |
* Technology Sector Average
AVGO
Broadcom
344.72
-16.72
-4.63%
AMD
Advanced Micro Devices
493.41
332.25
206.16%
INTC
Intel
97.19
72.42
292.37%
MRVL
Marvell
218.82
151.53
225.21%
NVDA
Nvidia
210.96
33.64
18.97%
QCOM
Qualcomm
180.15
22.22
14.07%
Broadcom Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Broadcom Posts Record Q3 Results Driven by AI Growth
Positive
Sep 2, 2026
Broadcom reported third-quarter fiscal 2026 results on September 2, 2026, posting record revenue of $29.6 billion, up 86% year-on-year, and GAAP operating income of $16.0 billion. Net income more than tripled to $13.1 billion, while free cash flow...
Business Operations and Strategy
Broadcom, Apple Extend Multi-Year Custom Chip Partnership
Positive
Jul 6, 2026
Broadcom Inc. and Apple Inc. have expanded their long-standing technology collaboration by signing new multi-year agreements that run through 2031. Under these deals, Broadcom will develop and supply a range of custom ASIC silicon products for use...
Business Operations and StrategyPrivate Placements and Financing
Broadcom Announces $2.5 Billion Debt Tender Offer
Positive
Jun 18, 2026
On June 17, 2026, Broadcom announced pricing terms for a series of cash tender offers to repurchase up to $2.5 billion of selected outstanding senior notes, including maturities from 2030 to 2038, setting total consideration levels per $1,000 of p...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.