Broadcom Inc. (AVGO) AI Stock Analysis

Broadcom Inc. designs, develops, and supplies semiconductor devices and infrastructure software solutions across two primary segments: Semiconductor Solutions and Infrastructure Software. Its semiconductor offerings include system-on-chips for set-top boxes, broadband access, wireless LAN access points, and custom silicon solutions for Ethernet switching and routing, alongside optical components, RF devices, and embedded processors. Its Infrastructure Software segment provides solutions including Wi-Fi, Bluetooth, and GPS/GNSS SoCs, storage controllers, custom touch controllers, inductive charging solutions, and networking components such as Ethernet PHYs and fiber channel host bus adapters across data centers, enterprise networking, and telecommunications.

Broadcom delivered a 5-year revenue CAGR of 21.7% from FY2020 to FY2025. Annual revenue expanded from $27.45B in FY2021 to $35.82B in FY2023, reached $51.57B in FY2024, and grew 23.9% to $63.89B in FY2025. Gross margin stood at 67.8% in FY2025, while operating margin reached 39.9% and net income totaled $23.13B. In the trailing twelve months, revenue reached $89.10B with a profit margin of 42.9% and an operating margin of 54.3%. For the latest quarter ended July 31, 2026, quarterly revenue grew 85.5% year-over-year, while quarterly earnings expanded 215.3% year-over-year, supported by trailing twelve month EPS of $7.59.

As of July 31, 2026, Broadcom held $23.98B in cash and short-term investments against total debt of $59.42B, resulting in net debt of $35.44B. The company maintained a current ratio of 2.50, total assets of $188.15B, and shareholders' equity of $99.69B, yielding a debt-to-equity ratio of 0.60. In FY2025, operating cash flow reached $27.54B against capital expenditures of $623.0M. Capital allocation in FY2025 included $11.14B in dividends paid and $6.31B in share buybacks, while the share count increased 13.4% over five years.

At a last close of $328.75, Broadcom has a market cap of $1.57T and an enterprise value of $1.78T. It trades at a trailing P/E of 43.3x, slightly above the median of its Nasdaq-100 Technology peers of 42.1x, but its forward P/E of 19.4x sits below the peer median of 25.7x. The company's price-to-sales ratio of 17.6x and EV-to-EBITDA ratio of 33.9x compare with peer medians of 11.9x and 30.6x, respectively. Over the trailing 1-year period, Broadcom declined 6.5%, lagging the S&P 500 (SPY) return of 16.8%, though its 5-year return of 613.6% exceeded the index return of 83.0%.

Broadcom pays a quarterly dividend with an annual forward dividend of $2.60, representing a dividend yield of 0.79%. The company has paid dividends for 17 consecutive years, posting a 5-year annualized dividend growth rate of 12.6%. Its payout ratio stands at 27.5%, and the last ex-dividend date was September 21, 2026. In FY2025, total dividends paid were $11.14B.

Wall Street coverage includes 40 Strong Buy, 7 Buy, and 3 Hold ratings, with 0 Sell or Strong Sell ratings. The mean price target is $527.59, representing an upside of 60.5% versus the last close of $328.75. For the fiscal year ending October 31, 2026, analysts estimate revenue of $105.98B and EPS of $11.66, reflecting EPS growth of 70.9%. Broadcom beat EPS estimates in all 4 of the last 4 quarters, and its next earnings date is December 10, 2026.

This page is an AI-written research summary of Broadcom Inc. (AVGO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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