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Broadcom
(NASDAQ:AVGO)
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Rating:78Outperform
Price Target:
$408.00
▲(14.37% Upside)
Action:Reiterated
Date:09/06/26
Overall score reflects outstanding financial performance and a highly positive earnings outlook driven by rapid AI semiconductor growth and strong margins/cash generation. Offsetting factors are clearly negative technical momentum (trading below major moving averages with weak MACD/RSI) and a relatively expensive valuation (P/E 44.4) with a modest dividend yield.
Positive Factors
AI infrastructure leadership and growth
Rapid AI semiconductor growth and Broadcom’s strengthening infrastructure position indicate durable demand for its custom silicon and networking products. This scale can reinforce customer relationships, support continued innovation, and expand the company’s earnings base over the next several quarters.
Negative Factors
Growth concentration in AI semiconductors
The widening gap between AI and non-AI semiconductor growth makes Broadcom’s near- to medium-term expansion increasingly dependent on AI infrastructure demand. A change in customer deployment timing or AI investment intensity could therefore create greater earnings variability.
Read all positive and negative factors
Positive Factors
Negative Factors
AI infrastructure leadership and growth
Rapid AI semiconductor growth and Broadcom’s strengthening infrastructure position indicate durable demand for its custom silicon and networking products. This scale can reinforce customer relationships, support continued innovation, and expand the company’s earnings base over the next several quarters.
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 Yield0.7%
Average Volume (3M)22.07M
Price to Earnings (P/E)44.9
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)11.66
Revenue Forecast (FY)$106.06B
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:Jun 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Dec 10, 2026
Earnings Call Sentiment Positive
The call communicated exceptionally strong operational and financial performance driven by record revenue, margins, free cash flow, and massive AI semiconductor growth and bookings. Strategic multi‑year customer commitments, multi‑gigawatt deployment plans, and technology leadership underpin a highly positive outlook. The primary near‑term headwinds are mix‑driven gross margin compression, elevated inventory and working capital as the company secures supply, and concentration of growth in AI (with non‑AI semiconductors growing modestly). Overall, the positives substantially outweigh the risks.Positive Updates
Record Consolidated Revenue and Strong YoY Growth
Consolidated revenue was a record $22.2 billion in Q2, up 48% year‑over‑year; Q3 consolidated revenue guidance of $29.4 billion implies +84% year‑over‑year growth.
Negative Updates
Gross Margin Compression from Mix
Consolidated gross margin declined to 77.1% in Q2 (down ~32 basis points YoY) and is guided down further to ~74% in Q3 due to rapid AI semiconductor mix growth versus higher‑margin software; management attributes this to mix rather than structural semiconductor margin deterioration.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Consolidated Revenue and Strong YoY Growth
Consolidated revenue was a record $22.2 billion in Q2, up 48% year‑over‑year; Q3 consolidated revenue guidance of $29.4 billion implies +84% year‑over‑year growth.
Read all positive updates
Company Guidance
Broadcom guided Q3 fiscal 2026 consolidated revenue of $29.4 billion (up 84% YoY), with semiconductor revenue of approximately $20.5 billion (up 124% YoY) that includes AI semiconductor revenue of $16 billion (up >200% YoY) and non‑AI semiconductor revenue of about $4.5 billion (up ~12% YoY), infrastructure software revenue of roughly $8.9 billion (up 31% YoY), a consolidated gross margin near 74%, operating margin around 67%, adjusted EBITDA about 68% of revenue, a non‑GAAP tax rate of ~16% (Q3 and FY26), and an estimated non‑GAAP diluted share count of ~4.94 billion; management also reiterated FY26 AI semiconductor revenue of $56 billion (≈+180% YoY) and reiterated AI semiconductor revenue in excess of $100 billion for FY27.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 | 27.46 | 110.11% | 0.24% | 83.38% | 124.42% | |
79 Outperform | $207.04B | 77.43 | 16.22% | 0.10% | 30.62% | ― | |
78 Outperform | $1.73T | 44.91 | 43.91% | 0.70% | 48.69% | 99.97% | |
74 Outperform | $842.57B | 131.00 | 10.07% | ― | 39.54% | 125.82% | |
69 Neutral | $191.11B | 20.73 | 37.33% | 1.99% | 1.87% | -16.70% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $544.15B | -48.79 | -10.76% | 2.63% | 7.47% | 55.56% |
* Technology Sector Average
AVGO
Broadcom
361.99
0.55
0.15%
AMD
Advanced Micro Devices
516.13
354.97
220.26%
INTC
Intel
102.94
78.17
315.58%
MRVL
Marvell
236.10
168.81
250.89%
NVDA
Nvidia
218.29
40.97
23.10%
QCOM
Qualcomm
181.97
24.04
15.22%
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...
Business Operations and Strategy
Broadcom Launches $2.5 Billion Senior Notes Tender Offer
Positive
Jun 11, 2026
On June 11, 2026, Broadcom launched cash tender offers to repurchase up to $2.5 billion of several series of its outstanding senior notes maturing between 2030 and 2038, subject to a consideration cap and specified acceptance priorities. The offer...
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.