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Broadcom Inc. (AVGO) Stock

Broadcom Inc. Stock Details, Movements and Public Alerts

Broadcom Stock: The AI Infrastructure Giant Powering the Future

Broadcom has emerged as a critical player in the AI revolution, trading at $295 after a 92% surge. The semiconductor giant generates over $60 billion in annual revenue, with AI driving more than 50% of its semiconductor business.

  • •
    Core Strengths:Custom AI chip dominance, VMware integration success, diversified revenue streams
  • •
    Main Risks:AI spending slowdown concerns, high valuation, customer concentration
  • •
    Bottom Line:Premium valuation justified by AI growth, but volatility expected

Market Cap

$1.40T

52-Week High

$374.23

-3.84% from high

52-Week Low

$137.77

+161.21% from low

Avg Daily Volume

31,092,604

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

108.54

Above market average

Forward P/E

35.97

Earnings expected to grow

PEG Ratio

1.39

Reasonably valued

Price to Book

20.10

EV/EBITDA

48.17

EPS (TTM)

$2.74

Price to Sales

24.52

Beta

1.17

Similar volatility to market

How is AVGO valued relative to its earnings and growth?
Broadcom Inc. trades at a P/E ratio of 108.54, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 35.97 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.39 indicates reasonable value when growth is considered.
What is AVGO's risk profile compared to the market?
With a beta of 1.17, Broadcom Inc. is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 20.10 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

22.60%

Operating Margin

31.80%

Return on Equity

19.00%

Return on Assets

8.01%

Revenue Growth (YoY)

16.40%

Earnings Growth (YoY)

188.10%

How profitable and efficient is AVGO's business model?
Broadcom Inc. achieves a profit margin of 22.60%, meaning it retains $22.60 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 31.80% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 19.00% and ROA at 8.01%, the company generates strong returns on invested capital.
What are AVGO's recent growth trends?
Broadcom Inc.'s revenue grew by 16.40% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 188.10% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against SEMICONDUCTORS & RELATED DEVICES industry averages for proper context.

Dividend Information

Dividend Per Share

$2.30

Dividend Yield

0.75%

Ex-Dividend Date

6/20/2025

Dividend Date

6/30/2025

What dividend income can investors expect from AVGO?
Broadcom Inc. offers a dividend yield of 0.75%, paying $2.30 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of 6/20/2025.
How reliable is AVGO's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Broadcom Inc. pays $2.30 per share in dividends against earnings of $2.74 per share, resulting in a payout ratio of 83.94%. This high payout ratio of 60-90% leaves limited earnings for reinvestment. While currently sustainable, there's less buffer for dividend growth or protection during earnings downturns. The next dividend payment is scheduled for 6/30/2025.

Company Size & Market

Shares Outstanding

4.70B

Book Value/Share

$59.22

Asset Type

Common Stock

What is AVGO's market capitalization and position?
Broadcom Inc. has a market capitalization of $1.40T, classifying it as a mega-cap stock (over $200B). These are the largest, most established companies globally, typically offering stability and liquidity but with more modest growth potential. Mega-caps often pay dividends and weather economic downturns better than smaller companies. With 4.70B shares outstanding, the company's ownership is widely distributed. As a major player in the SEMICONDUCTORS & RELATED DEVICES industry, it competes with other firms in this sector.
How does AVGO's price compare to its book value?
Broadcom Inc.'s book value per share is $59.22, while the current stock price is $359.87, resulting in a price-to-book (P/B) ratio of 6.08. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$304.30

15.44% downside potential

Analyst Recommendations

Strong Buy

6

Buy

33

Hold

3

Sell

0

Strong Sell

1

How reliable are analyst predictions for AVGO?
43 analysts cover AVGO with 91% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $304.30 implies -15.4% downside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on AVGO?
Current analyst recommendations:6 Strong Buy, 33 Buy, 3 Hold, 01 Strong Sell. The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Sep 1, 2025, 02:12 AM

Earnings Dates

Recent Earnings History

DateQuarterEstimated EPSActual EPSSurprise
Sep 3, 2025Q3$1.59--

Technical Indicators

RSI (14-day)

81.35

Overbought

50-Day Moving Average

$198.32

81.46% above MA-50

200-Day Moving Average

$192.27

87.17% above MA-200

MACD Line

13.86

MACD Signal

12.62

MACD Histogram

1.25

Bullish

What does AVGO's RSI value tell investors?
The RSI (Relative Strength Index) for AVGO is currently 81.35, indicating the stock is in overbought territory (above 70). This suggests strong recent buying pressure that may be unsustainable. While overbought conditions can persist in strong trends, traders often watch for RSI divergences or a drop below 70 as potential sell signals. Combined with the price being above the 50-day moving average, this confirms bullish conditions.
How should traders interpret AVGO's MACD and moving average crossovers?
MACD analysis shows the MACD line at 13.86 above the signal line at 12.62, with histogram at 1.25. This bullish crossover suggests upward momentum is building. The wide histogram confirms strong momentum. The 50-day MA ($198.32) is above the 200-day MA ($192.27), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently above both MAs, confirming strength.

Indicators last updated: Jun 4, 2025, 07:22 AM

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Broadcom (AVGO) Stock Analysis 2025 - AI Infrastructure Investment Guide

Broadcom has emerged as a critical player in the AI revolution, trading at $295 after a 92% surge. The semiconductor giant generates over $60 billion in annual revenue, with AI driving more than 50% of its semiconductor business.

Why Broadcom? Understanding the Investment Story

The AI Infrastructure Powerhouse

While Nvidia captures headlines with its GPUs, Broadcom quietly dominates the equally critical networking and custom chip infrastructure that makes AI data centers possible. The company transformation from a traditional semiconductor player to an AI infrastructure giant represents one of the most successful pivots in tech history.

The numbers tell a compelling story: AI revenue reached $4.4 billion in Q2 2025 alone, growing 46% year-over-year and now representing over half of semiconductor revenue. This is not a temporary spike driven by hype; it is a fundamental shift in how the world largest tech companies build their AI infrastructure.

The VMware Masterstroke

The $69 billion VMware acquisition, initially met with skepticism, has proven to be a strategic masterstroke that transformed Broadcom into a hybrid semiconductor-software powerhouse. Infrastructure software now generates over $26 billion annually.

Valuation: Expensive but Earned

Trading at 35 times forward earnings, Broadcom commands a premium that would make value investors blanch. Yet context matters: Nvidia trades at 45 times earnings, AMD at 40 times, making Broadcom multiple seem almost reasonable for an AI play.

Opportunities for 2025 and Beyond

The Custom Silicon Revolution

Broadcom custom chip business represents a seismic shift in how hyperscalers approach AI infrastructure. The company currently works with three major customers and has deeply engaged with two others.

Who Is This Stock For?

Perfect For

  • ✓Growth investors seeking AI exposure
  • ✓Tech bulls believing in infrastructure spending
  • ✓Long-term holders comfortable with volatility
  • ✓Investors wanting diversified tech exposure

Less Suitable For

  • ✗Value investors concerned about multiples
  • ✗Risk-averse investors seeking stability
  • ✗Short-term traders in volatile markets
  • ✗Income-focused investors seeking high yields

Investment Recommendation

Conclusion

Broadcom stands as a premier AI infrastructure play with exceptional execution and strategic positioning. While the valuation appears stretched, the company's dominance in custom AI chips and successful VMware integration justify premium multiples. The AI buildout has years to run, and Broadcom sits at the center of this transformation. Buy on any pullbacks below $265 for growth-oriented investors willing to accept volatility.

2025 Price Target
$330-350
Upside Potential
+12-18%
Risk Level
High
Recommendation
Accumulate < $265

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