# Broadcom Inc. (AVGO)

> Broadcom sells chips for data centers, communications and other devices, plus software for businesses’ computer systems and security.

- Exchange: NASDAQ · Sector: Technology · Industry: Semiconductors
- Headquarters: Palo Alto, California
- Founded: 1991 (Broadcom)
- Employees: approximately 33,000 (as of 2025-11-02)
- SEC CIK: 0001730168 ([filings on EDGAR](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001730168))
- Full page: https://inspectstocks.com/stocks/avgo
- Data as of: price 2026-09-25; newest filing used 2026-09-10; latest fiscal period ended 2026-08-02

## Grade

**A+** on the growth-and-cash rubric, 5 of 5 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Revenue growing overall | passed | $89.1B | $35.5B |
| Revenue growing recently | passed | $89.1B | $63.9B |
| Free cash flow positive | passed | $39.4B |  |
| Free cash flow growing overall | passed | $39.4B | $17.4B |
| Free cash flow growing recently | passed | $39.4B | $26.9B |

Business quality (the + / − mark): 6 of 6 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Profitable | passed | 42.9% |  |
| Healthy profit margin | passed | 42.9% |  |
| Strong operating margin | passed | 48.0% |  |
| Good return on equity | passed | 47.1% |  |
| Debt under control | passed | 0.82 |  |
| Turns sales into cash | passed | 44.2% |  |

How the grade works: the letter counts failed checks (none → A, one → B, two → C, three → D, four or more → F). It is built from SEC filings only — the share price never enters it — and describes the business, not whether the stock is worth buying.

## Key figures

In US dollars, as filed.

| Measure | Value |
| --- | --- |
| Revenue, trailing twelve months | $89.1B |
| Net income, trailing twelve months | $38.3B |
| Free cash flow, trailing twelve months | $39.4B |
| Net margin | 42.9% |
| Operating margin | 48.0% |
| Return on equity | 47.1% |
| Debt to equity | 0.82 |
| Diluted EPS, trailing twelve months | $7.84 |
| Share price | $352.81 |
| Market value | $1.68T |
| Price / earnings | 45.0x |
| Price / sales | 18.9x |

## What the business does

Broadcom designs and sells semiconductors used in artificial intelligence data centers, computer networks, phones, storage devices and broadband equipment. It also sells business software, including VMware products for running computer systems, cybersecurity software and tools for managing mainframes and data storage networks. Customers include large technology companies, device makers, businesses and government agencies.

### How it makes money

- **Semiconductor Solutions** (68.0% (three fiscal quarters ended 2026-08-02)) — Broadcom sells chips, networking equipment and related components, often through distributors or to equipment makers and their contract manufacturers. This segment also includes intellectual-property licensing.
- **Infrastructure Software** (32.0% (three fiscal quarters ended 2026-08-02)) — Broadcom receives money from software licences, subscriptions and services. Customers buy products such as VMware Cloud Foundation, mainframe software and cybersecurity tools, directly or through sales partners.

### Products

- **Custom accelerators and custom chip design** — Chips designed to a customer’s specifications, including accelerators that help run artificial intelligence workloads in large data centers.
- **Ethernet networking chips** — Switching, routing and network interface chips that move data between computers and other equipment in data centers, service-provider networks and business networks.
- **Optical components** — Parts that send and receive data over fibre-optic cables, used in data-center networks, storage systems and telecommunications.
- **Wireless-device chips** — Radio-frequency components, Wi-Fi and Bluetooth chips, touchscreen controllers and wireless charging chips for phones, tablets and wearable devices.
- **Server and storage chips** — Components that connect servers to storage devices and help read, write and protect data on hard disk drives and solid-state drives.
- **VMware Cloud Foundation** — Software businesses use to manage computing, storage, networking and security across their own data centers and supported cloud services.

### Customers

- Large cloud and data-center operators and artificial intelligence companies, including Google, Anthropic, OpenAI and Meta, work with Broadcom on custom chips and networking products.
- Server makers, equipment manufacturers and system integrators buy Broadcom components for products they build, sometimes through contract manufacturers.
- Distributors buy semiconductor products and resell them to equipment makers and other customers.
- Businesses and government agencies buy software for private data centers, cybersecurity, mainframe computers and data storage networks, either directly or through resellers and other partners.
- Telecommunications and broadband providers use Broadcom chips in network equipment, broadband devices and set-top boxes.
- Makers of phones, tablets, wearable devices and other electronics use Broadcom’s wireless and connectivity chips.

### Competitors

- NVIDIA (NVDA) — Data-center chips, networking products and equipment used for artificial intelligence computing.
- Marvell Technology (MRVL) — Custom chips, data-center networking components and storage-related semiconductors.
- Qualcomm (QCOM) — Wireless-device chips and radio-frequency components.
- Cisco Systems (CSCO) — Networking equipment and products for connecting data centers and storage systems.
- Microsoft (MSFT) — Microsoft’s cloud, security and business software compete with parts of Broadcom’s infrastructure software business.
- IBM (IBM) — Mainframe software and related tools for large businesses.

### What it depends on

- A substantial amount of semiconductor sales goes through distributors; one distributor accounted for 50% of revenue in the fiscal quarter ended 2026-08-02 (high confidence).
- Broadcom relies on outside manufacturers for most wafer production and much of assembly and testing, including Taiwan Semiconductor Manufacturing Company.
- Making and deploying artificial intelligence data centers depends on available chips, advanced packaging materials, memory, electricity, land and completed data-center buildings.
- A relatively small group of large end customers accounts for a substantial share of sales; the largest five accounted for approximately 55% of revenue in the fiscal quarter ended 2026-08-02 (high confidence).

### What could go wrong

- Customer concentration can make revenue sensitive to orders from a few large buyers: the five largest end customers accounted for approximately 55% of revenue in the fiscal quarter ended 2026-08-02 (high confidence), and a distributor accounted for 50% (high confidence).
- Chip deliveries and customer deployments can be delayed by shortages of manufacturing capacity, advanced substrates or memory, or by customers’ lack of ready data-center sites and power.
- Broadcom’s financing arrangement for one customer’s data-center equipment includes a backstop; its maximum potential liability was approximately $29 billion when all covered racks are deployed (as of 2026-08-02, high confidence). If the customer does not pay, Broadcom may have to cover part of the unpaid lease amount, subject to the agreement’s terms and the value recovered from the equipment.

## More on this company

- [Overview](https://inspectstocks.com/stocks/avgo)
- [Financial statements](https://inspectstocks.com/stocks/avgo/financials)
- [Competitors](https://inspectstocks.com/stocks/avgo/peers)
- [Earnings](https://inspectstocks.com/stocks/avgo/earnings)

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Source: InspectStocks, built from the company’s own SEC filings. This describes a business — it is not investment advice and not a recommendation to buy or sell anything.