Business 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, and it maintains a significant team of 19,000 full-time staff. Its operations are segmented into four primary divisions: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other. Broadcom’s diverse product range is integrated into numerous end-user technologies, including enterprise and data center networking, residential internet solutions, digital television receivers, telecommunications apparatus, mobile phones, data center servers and storage architectures, industrial automation, alternative and power generation systems, and electronic display technologies. The company's product offerings extend from fundamental discrete components to intricate sub-systems incorporating various device categories. This also encompasses specialized firmware designed to facilitate interaction between analog and digital systems, alongside mechanical hardware engineered to connect with optoelectronic or capacitive sensing technologies.
Business History
Generated: Jun 22, 2026 3:03amPrice Overview
Last updated: Jun 22, 2026 3:00am (5d ago)Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): 4.91
Total Equity: $81.29B
Shares: 4,853,000,000
Total Debt: $65.14B
Cash: $16.18B
EBITDA: $34.71B
Total Debt: $65.14B
Cash: $16.18B
Revenue: $63.89B
Revenue: $63.89B
Revenue: $63.89B
Total Equity: $81.29B
Tax Rate: -1.7%
Equity: $81.29B
Total Debt: $65.14B
Cash: $16.18B
Current Liabilities: $18.51B
Long-Term Debt: $61.98B
Total Debt: $65.14B
Total Equity: $81.29B
Shares: 4,853,000,000
Shares: 4,853,000,000
CapEx: -$623.00M
Shares: 4,853,000,000
Stock Price: $411.35
Net Income: $23.13B
Industry Benchmarks
Advanced Analysis Forensic deep-dive · three lenses
Broadcom is a structurally high-quality business: revenue grew from $27.5B (2021) to $63.9B (2025), gross margin sits at 67.8% and operating margin recovered to 39.9% after the VMware-integration dip in 2024 (OpM 26.1%, NI $5.9B). FCF compounded from $13.3B to $26.9B, OCF/NI of 1.87x and accruals of -6.6% of assets indicate clean, cash-backed earnings; Altman Z of 14.11 and Beneish M of -1.86 corroborate no manipulation flags. Net income snapped back to $23.1B in 2025, consistent with VMware synergies flowing through.
Verify before trusting this (5)
- Customer concentration in the AI/custom-silicon segment (hyperscaler dependence) per 10-K segment disclosures
- Debt maturity ladder and weighted interest cost post-VMware financing
- VMware subscription transition progress and renewal pricing economics
- Whether 2024 net income dip was purely deal-related amortization/restructuring vs underlying weakness
- Goodwill and intangibles balance vs equity given the M&A-heavy history
At $411.35 and a ~$1.96T market cap, AVGO trades at roughly 35-40x forward earnings and ~20x sales on a business whose blended (semis + VMware) organic growth is more like mid-teens than the 25%+ the multiple implies. The e2e synthesis flagged 'High Conviction Required' - i.e., the cross-method fair value is not comfortably above price; you have to underwrite the AI-networking bull case in full to justify today's quote. Quality is high (score 66), which raises deserved value, but $49B net debt and ~3% annual dilution claw some of that back on a per-share basis.
Verify before trusting this (4)
- AI revenue run-rate guide and mix of custom ASIC vs merchant networking in next print
- VMware standalone operating margin trajectory and any churn from license model change
- Hyperscaler FY26 capex commentary - any signs of digestion
- Net debt paydown pace and buyback vs SBC offset
The active narrative on AVGO is a platform-monopoly story at strong intensity: Broadcom is being framed as the custom-silicon backbone for Google, Meta, Anthropic, and OpenAI, and the news flow in the last 72 hours reinforces exactly that framing ('cheapest mega-cap AI stock nobody talks about', 'best way to invest in AI'). That is a powerful, currently-winning narrative pushing the stock up regardless of valuation debate. Analyst tone is aligned and still strengthening, not diverging: 51 Buys, zero Sells, 13 target revisions this month averaging ~$496 against a $411 price - roughly 21% implied upside and revisions are going the right way. Momentum is strong_positive and the macro tape is neutral (VIX 16.8, only 1.4% off highs), so beta 1.43 is currently an accelerant, not a liability. The only sentiment cracks are subtle: a technician call that leadership is rotating away from Big Tech toward financials/industrials/biotech, and a 'good results no longer good enough' warning ahead of Micron earnings - hinting the bar for AI names is rising. But none of that is landing on AVGO yet; the narrative pressure is decisively positive.
Verify before trusting this (4)
- Whether the leadership-rotation thesis (financials/industrials/biotech) actually shows up in flows or stays as TV commentary
- Reaction to the next AVGO print - any 'beat-and-not-enough' response would confirm the rising-bar risk
- Hyperscaler capex commentary in coming weeks; any softening would crack the custom-silicon narrative fast
- VIX behavior - a move above 20 would meaningfully change how a 1.43-beta name trades
Deep Analysis
Pre-flight intelligence scans the company first, then routes to the right analytical methods.
Income Statement (Annual)
Last updated: Jun 22, 2026 3:04am (5d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $27.5B | $33.2B | $35.8B | $51.6B | $63.9B |
| Cost of Revenue | $10.6B | $11.1B | $11.1B | $19.1B | $20.6B |
| Gross Profit | $16.8B | $22.1B | $24.7B | $32.5B | $43.3B |
| Operating Expenses | $8.3B | $7.8B | $8.5B | $19.0B | $17.8B |
| Operating Income | $8.5B | $14.2B | $16.2B | $13.5B | $25.5B |
| Net Income | $6.7B | $11.5B | $14.1B | $5.9B | $23.1B |
| EBITDA | $14.7B | $19.2B | $20.6B | $23.9B | $34.7B |
| EPS | $1.57 | $2.74 | $3.39 | $1.27 | $4.91 |
| EPS (Diluted) | — | — | — | — | — |
Balance Sheet (Annual)
Last updated: Jun 22, 2026 3:02am (5d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | $12.2B | $12.4B | $14.2B | $9.3B | $16.2B |
| Total Current Assets | $16.6B | $18.5B | $20.8B | $19.6B | $31.6B |
| Total Assets | $75.6B | $73.2B | $72.9B | $165.6B | $171.1B |
| Current Liabilities | $6.3B | $7.1B | $7.4B | $16.7B | $18.5B |
| Long-Term Debt | $39.4B | $39.1B | $37.6B | $66.3B | $62.0B |
| Total Liabilities | $50.6B | $50.5B | $48.9B | $98.0B | $89.8B |
| Total Equity | $25.0B | $22.7B | $24.0B | $67.7B | $81.3B |
| Retained Earnings | $748.0M | $1.6B | $2.7B | $0 | $9.8B |
Cash Flow (Annual)
Last updated: Jun 22, 2026 3:02am (5d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | $13.8B | $16.7B | $18.1B | $20.0B | $27.5B |
| Capital Expenditure | -$443.0M | -$424.0M | -$452.0M | -$548.0M | -$623.0M |
| Free Cash Flow | $13.3B | $16.3B | $17.6B | $19.4B | $26.9B |
| Acquisitions (net) | $37.0M | -$246.0M | -$53.0M | -$26.0B | $0 |
| Debt Repayment | — | — | — | — | — |
| Dividends Paid | — | — | — | — | — |
| Stock Buybacks | -$1.3B | -$8.5B | -$7.7B | -$12.4B | -$6.3B |
| Net Change in Cash | $4.5B | $253.0M | $1.8B | -$4.8B | $6.8B |
Analyst Estimates (Annual)
Last updated: Jun 22, 2026 3:00am (5d ago)| Metric | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|
| Revenue |
$173.3B $119.0B – $191.8B
|
$230.8B $229.4B – $232.2B
|
$274.8B $207.8B – $301.6B
|
$139.0B $105.1B – $152.6B
|
| EBITDA |
$93.3B $64.1B – $103.3B
|
$124.3B $123.5B – $125.0B
|
$148.0B $111.9B – $162.4B
|
$74.8B $56.6B – $82.1B
|
| Net Income |
$95.0B $79.9B – $110.1B
|
$107.9B $89.7B – $148.5B
|
$108.1B $73.8B – $121.8B
|
$169.9B $116.0B – $191.4B
|
| EPS | — | — | — | — |
Growth Trends (YoY %)
Last updated: Jun 22, 2026 3:04am (5d ago)| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue Growth | +21.0% | +7.9% | +44.0% | +23.9% |
| Gross Profit Growth | +31.2% | +11.7% | +31.7% | +33.2% |
| Operating Income Growth | +67.0% | +13.9% | -16.9% | +89.3% |
| Net Income Growth | +70.7% | +22.5% | -58.1% | +292.3% |
| EBITDA Growth | +30.4% | +7.3% | +16.2% | +45.4% |
Insider Trading (Recent)
Last updated: Jun 22, 2026 3:04am (5d ago)All SEC Form 4 codes
- P Purchase
- Open-market or private purchase of shares.
- S Sale
- Open-market or private sale of shares.
- A Award / grant
- Grant or award of securities (RSUs, options, etc.) under Rule 16b-3.
- D Return to issuer
- Securities disposed back to the company under Rule 16b-3.
- F In-kind (tax)
- Shares withheld or delivered to pay the option-exercise price or tax — not an open-market sale.
- I Discretionary
- Discretionary transaction under an employee plan — Rule 16b-3(f).
- M Option exercise
- Exercise or conversion of a derivative (option/RSU) into shares — exempt.
- C Conversion
- Conversion of a derivative security into the underlying shares.
- E Short expiration
- Expiration of a short derivative position.
- H Long expiration
- Expiration or cancellation of a long derivative position with value received.
- O OTM exercise
- Exercise of an out-of-the-money derivative.
- X ITM exercise
- Exercise of an in-the-money or at-the-money derivative.
- G Gift
- Bona fide gift of securities.
- L Small acquisition
- Small acquisition under Rule 16a-6.
- W Inheritance
- Acquisition or disposition by will or the laws of descent.
- Z Voting trust
- Deposit into or withdrawal from a voting trust.
- J Other
- Other acquisition or disposition (explained in a Form 4 footnote).
- K Equity swap
- Transaction in an equity swap or similar instrument.
- U Tender / buyout
- Disposition via tender of shares in a change-of-control transaction.
Compensation-plan codes (A, D, F, M) are routine and rarely directional. Open-market P (buy) and S (sale) carry the most signal.
| Date | Insider | Type | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-06-24 | SAMUELI HENRY | S-Sale | 23,253.00 | $377.61 | $8.8M |
| 2026-06-24 | SAMUELI HENRY | S-Sale | 33,346.00 | $378.51 | $12.6M |
| 2026-06-24 | SAMUELI HENRY | S-Sale | 30,911.00 | $379.76 | $11.7M |
| 2026-06-24 | SAMUELI HENRY | S-Sale | 48,996.00 | $380.57 | $18.6M |
| 2026-06-24 | SAMUELI HENRY | S-Sale | 36,661.00 | $381.68 | $14.0M |
| 2026-06-24 | SAMUELI HENRY | S-Sale | 26,889.00 | $382.63 | $10.3M |
| 2026-06-24 | SAMUELI HENRY | S-Sale | 36,188.00 | $383.69 | $13.9M |
| 2026-06-24 | SAMUELI HENRY | S-Sale | 43,302.00 | $384.58 | $16.7M |
| 2026-06-24 | SAMUELI HENRY | S-Sale | 53,722.00 | $385.57 | $20.7M |
| 2026-06-24 | SAMUELI HENRY | S-Sale | 6,280.00 | $386.39 | $2.4M |
| 2026-06-24 | SAMUELI HENRY | S-Sale | 660.00 | $388.01 | $256,087 |
| 2026-06-24 | SAMUELI HENRY | G-Gift | 69,498.00 | $0.00 | $0 |
| 2026-06-18 | SAMUELI HENRY | G-Gift | 1,890.00 | $0.00 | $0 |
| 2026-06-17 | SAMUELI HENRY | G-Gift | 1,602.00 | $0.00 | $0 |
| 2026-06-24 | SAMUELI HENRY | S-Sale | 21,603.00 | $377.64 | $8.2M |
| 2026-06-24 | SAMUELI HENRY | S-Sale | 30,456.00 | $378.50 | $11.5M |
| 2026-06-24 | SAMUELI HENRY | S-Sale | 24,073.00 | $379.69 | $9.1M |
| 2026-06-24 | SAMUELI HENRY | S-Sale | 49,805.00 | $380.57 | $19.0M |
| 2026-06-24 | SAMUELI HENRY | S-Sale | 34,517.00 | $381.67 | $13.2M |
| 2026-06-24 | SAMUELI HENRY | S-Sale | 25,134.00 | $382.62 | $9.6M |
Dividend History (Last 20)
Last updated: Jun 20, 2026 12:50am (7d ago)| Date | Dividend | Declaration | Record | Payment |
|---|---|---|---|---|
| 2026-06-22 | $0.65 | 2026-06-02 | 2026-06-22 | 2026-06-30 |
| 2026-03-23 | $0.65 | 2026-03-03 | 2026-03-23 | 2026-03-31 |
| 2025-12-22 | $0.65 | 2025-12-09 | 2025-12-22 | 2025-12-31 |
| 2025-09-22 | $0.59 | 2025-09-03 | 2025-09-22 | 2025-09-30 |
| 2025-06-20 | $0.59 | 2025-06-04 | 2025-06-20 | 2025-06-30 |
| 2025-03-20 | $0.59 | 2025-03-05 | 2025-03-20 | 2025-03-31 |
| 2024-12-23 | $0.59 | 2024-12-12 | 2024-12-23 | 2024-12-31 |
| 2024-09-19 | $0.53 | 2024-09-05 | 2024-09-19 | 2024-09-30 |
| 2024-06-24 | $5.25 | 2024-06-12 | 2024-06-24 | 2024-06-28 |
| 2024-03-20 | $5.25 | 2024-03-06 | 2024-03-21 | 2024-03-29 |
| 2023-12-19 | $5.25 | 2023-12-07 | 2023-12-20 | 2023-12-29 |
| 2023-09-20 | $4.60 | 2023-08-31 | 2023-09-21 | 2023-09-29 |
| 2023-06-21 | $4.60 | 2023-06-01 | 2023-06-22 | 2023-06-30 |
| 2023-03-21 | $4.60 | 2023-03-02 | 2023-03-22 | 2023-03-31 |
| 2022-12-19 | $4.60 | 2022-12-08 | 2022-12-20 | 2022-12-30 |
| 2022-09-21 | $4.10 | 2022-09-01 | 2022-09-22 | 2022-09-30 |
| 2022-06-21 | $4.10 | 2022-05-26 | 2022-06-22 | 2022-06-30 |
| 2022-03-21 | $4.10 | 2022-03-03 | 2022-03-22 | 2022-03-31 |
| 2021-12-21 | $4.10 | 2021-12-09 | 2021-12-22 | 2021-12-31 |
| 2021-09-21 | $3.60 | 2021-09-02 | 2021-09-22 | 2021-09-30 |
Narrative Economics
market-narrative step).
Delvantic AI Findings
Looking at the raw quarterly tape first: revenue went $13.07B → $14.05B → $14.92B → $15.00B → $15.95B → $18.02B → $19.31B → $22.19B. That's not "decelerating" — the last two prints are +13% and +15% sequentially, an acceleration driven by AI ASIC and networking. The "Adequate/decelerating" revenue confidence flag looks wrong on its face. Net income is noisier because of VMware purchase accounting and one-time items (the -$1.88B in Aug 2024, the 47.3% margin spike in Nov 2025, then 38% and 42%) — but the 42% margin on $22.19B in the latest quarter annualizes to roughly $37B in net income at run-rate, versus the TTM denominator the 66.6x P/E is using ($23B FY25 NI). Forward P/E on run-rate is closer to 50x, and on FCF — $26.9B FY25, likely $40B+ run-rate — closer to ~48x EV/FCF. Rich, but not the 66x headline.
Where I diverge from the prior models: the synthesis calls $411 "uncomfortable middle" requiring 60% implied FCF growth — that anchor uses stale FY25 FCF. The quarterly acceleration suggests the run-rate is already pulling that number down materially; the required CAGR is more like 30–35% over five years, which for AVGO's AI ASIC backlog (Google TPU, Meta MTIA, rumored OpenAI) is aggressive but not heroic. The market-forces note about "extreme customer concentration" is the right bear point and underweighted everywhere else — three hyperscalers likely drive >40% of AI semi revenue, and each is publicly working on in-house silicon. That's the actual risk, not VMware pricing backlash (which is a margin tailwind, not headwind, for AVGO). The pre-flight's "17x forward earnings" math is just wrong — $1,957B / $23B = 85x trailing, and forward consensus is ~38x, not 17x. That error undermines confidence in the synthesis's framing.
The contrarian case nobody is pressing hard enough: AVGO's gross margin jumped from 63% (FY24) to 68% (FY25) and operating margin from 26% to 40% in one year. That is not organic — it is VMware's software margin mix plus aggressive cost-out (Tan's playbook: fire 50%+ of acquired headcount, raise prices 3–10x on perpetual-to-subscription conversions). Those margin gains are largely one-shot. Once VMware is fully repriced (~18–24 months in), incremental margin expansion has to come from semis, where gross margins are structurally lower. The 42% net margin in Q2 FY26 is likely a near-peak, not a baseline. Pair that with the fact that hyperscaler capex — the entire bull thesis — is running at ~$400B/yr in 2025 and consensus assumes it grows again in 2026; any guide-down from MSFT/META/GOOGL/AMZN re-rates AVGO 20%+ overnight. The insider activity labeled "Net Insider Buying" looks misclassified — every line shown is S-Sale.
GPT Critique
In evaluating Broadcom Inc., the most striking aspect is its recent revenue growth, which suggests a dynamic acceleration rather than deceleration. The sequential revenue increases, particularly from $15.95 billion in May 2025 to $22.19 billion by May 2026, highlight a substantial growth trajectory primarily driven by AI ASIC and networking segments. The net income and margins, while variable due to acquisition impacts, still indicate robust profitability with a 42% margin in the latest quarter. This paints a picture of a company capitalizing effectively on AI infrastructure demand, but with potential vulnerabilities in sustaining such margins long term due to acquisition-related boosts rather than organic growth.
I find myself disagreeing with Opus on multiple fronts. Opus claims the market is pricing Broadcom at a real forward multiple of ~38x earnings and ~48x FCF, suggesting the valuation is excessive. However, the raw data shows that the company's current net income run-rate on its latest quarter ($37 billion annualized) reflects a more aggressive growth potential than Opus acknowledges. Moreover, the assertion that a 25%+ FCF compound growth over five years is necessary to justify current valuations seems overstated given the demonstrated revenue acceleration and market positioning in AI infrastructure. Conversely, I agree with Opus's skepticism regarding the VMware integration's impact—indeed, the margin improvements are likely non-recurring, and post-repricing, further margin enhancements will be challenging.
A critical oversight by Opus is the underestimation of risks associated with the company's customer concentration. As the market-forces indicate, Broadcom's reliance on a few hyperscalers for a significant portion of its AI semiconductor revenue is a genuine risk, especially as these customers invest in their own silicon capabilities. Opus's dismissal of this threat in favor of focusing on VMware pricing backlash seems misplaced. Additionally, I concur with Opus's point about the misclassification of insider activity; the insider sales could suggest internal skepticism about valuation sustainability.
A careful skeptic might argue that both Opus and I overestimate the impact of AI infrastructure growth on Broadcom's long-term prospects. They might highlight the potential for cyclical downturns in hyperscaler spending or increased competition, which could erode Broadcom's pricing power and margins more quickly than anticipated. Additionally, the skeptic would emphasize the historical volatility in the semiconductor industry and the risks of acquisition-heavy strategies that might not yield sustainable organic growth.