Article published Mar 4, 2026. Prices below use latest available snapshots.
AVGO Price Structure
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Date: 2026-03-04 Price: $320.42 Market Cap: $1.49T Sector: Semiconductors / Infrastructure Software
Quick Snapshot
| Metric | Value | Signal |
|---|---|---|
| Composite | 🟢 Bullish (score: 1) | Strong fundamentals |
| Revenue Accel | +6.61% | 🟢 Accelerating |
| YoY Growth | +28.2% | 🟢 Strong |
| Earnings Beat | 100% (4/4) | 🟢 Perfect |
| Insider Activity | Net sell -$1.1B | 🟡 Neutral (routine for mega-cap) |
| FCF Margin | 40.7% | 🟢 Elite cash generation |
Action Matrix
| Field | Value |
|---|---|
| Action | 📈 Accumulate |
| RSI | 33.3↓ |
| vs SMA20 | -2.2% below |
| 30D Change | +4.0% |
| 3M Change | -18.6% |
| From 52wk High | -23.9% |
| Entry Zone | $300–320 |
| Stop-Loss | $256 (-20%) |
| Target | $416 (+30%) |
| Conviction | 🟢 High |
Extended analysis
Price Data
| Timeframe | Price / Change |
|---|---|
| Current | $320.42 |
| 1D Change | -0.9% |
| 7D Change | -3.7% |
| 30D Change | +4.0% |
| 3M Change | -18.6% |
| 52wk High | $412.18 (Dec 10, 2025) |
| 52wk Low | $242.82 |
| RSI (14) | 33.3 |
| SMA (20) | $327.51 |
| Short Interest | 49.9M shares, 1.8 days to cover |
Company Overview
Broadcom is one of the largest semiconductor companies in the world ($1.49T market cap, ~33,000 employees). The company operates two primary segments:
Semiconductor Solutions (~57% of revenue): Custom AI accelerators (ASICs) for hyperscalers (Google TPU, Meta MTIA, reportedly OpenAI), networking chips (Memory/Jericho/Memory, Memory, Tomahawk switching), broadband, wireless, and storage/bridge controllers. Broadcom is a fabless designer (with some in-house manufacturing) and is the undisputed leader in custom silicon for AI training and inference.
Infrastructure Software (~43% of revenue): Dominated by VMware (acquired for $69B in late 2023), plus CA Technologies mainframe software, Symantec enterprise security, and Brocade storage networking. The VMware integration has been a massive success — the division is growing at double-digit rates anchored by VMware Cloud Foundation (VCF) adoption.
Website: https://www.broadcom.com Exchange: NASDAQ
Key Segments
| Segment | FQ1'26 Est. Revenue | % of Total | Growth Driver |
|---|---|---|---|
| Semiconductor Solutions | $12.25B | ~64% | Custom AI ASICs, networking |
| Infrastructure Software | $7.02B | ~36% | VMware Cloud Foundation |
| AI Revenue | $8.2B (guided) | ~43% | 2x QoQ — Google, Meta, OpenAI |
Revenue Trajectory (Quarterly)
| Quarter | Revenue | Gross Margin | Op Margin | Net Margin | EPS |
|---|---|---|---|---|---|
| FQ1'24 (Feb 2024) | $11.96B | 61.7% | 17.4% | 11.1% | $2.84 |
| FQ2'24 (May 2024) | $12.49B | 62.3% | 23.7% | 17.0% | $4.42 |
| FQ3'24 (Aug 2024) | $13.07B | 63.9% | 29.0% | -14.3%* | -$0.40* |
| FQ4'24 (Nov 2024) | $14.05B | 64.1% | 32.9% | 30.8% | $0.90 |
| FQ1'25 (Feb 2025) | $14.92B | 68.0% | 42.0% | 36.9% | $1.14 |
| FQ2'25 (May 2025) | $15.00B | 68.0% | 38.8% | 33.1% | $1.03 |
| FQ3'25 (Aug 2025) | $15.95B | 67.1% | 36.9% | 26.0% | $0.85 |
| FQ4'25 (Nov 2025) | $18.02B | 68.0% | 41.7% | 47.3% | $1.75 |
FQ3'24 net income was impacted by one-time VMware acquisition-related charges.
FY2025 Total Revenue: ~$63.9B (+24% YoY)
Cash Flow & Balance Sheet
| Metric | Value |
|---|---|
| Operating Cash Flow | $7.7B (latest Q) |
| Free Cash Flow | $7.3B (latest Q) |
| FCF Margin | 40.7% |
| Total Assets | $171.1B |
| Total Liabilities | $89.8B |
| Total Equity | $81.3B |
| Dividend | $0.65/share/quarter (quarterly) |
Valuation
| Metric | Value | Context |
|---|---|---|
| Trailing P/E | ~66x | Above 10yr avg (~52x) |
| Forward P/E | ~31x | Reflects massive earnings growth expected |
| Market Cap | $1.49T | 3rd largest semi company |
| EV/Revenue (TTL) | ~23x | Premium but justified by growth |
The wide gap between trailing P/E (~66x) and forward P/E (31x) reflects the market's expectation of substantial earnings acceleration as AI revenue scales and VMware synergies flow through. If AVGO hits the FY2026 AI revenue projections ($40B), this stock is cheap on a forward basis.
Management
| Name | Role | Tenure | Background |
|---|---|---|---|
| Hock E. Tan | President & CEO | Since 2006 (~20 yrs) | MIT BS/MS Mech Eng, Harvard MBA. Former GM/PepsiCo finance. Former CEO of Integrated Circuit Systems. Master dealmaker — orchestrated Broadcom Corp, Brocade, CA, Symantec, VMware acquisitions. |
| Charlie Kawwas | President, Semiconductor Solutions | 10+ yrs | Leads the chip division including AI ASICs |
| Kirsten Spears | CFO | 7+ yrs | Finance veteran, manages capital allocation |
Hock Tan is widely regarded as one of the best CEOs in tech — a disciplined capital allocator who acquires strategically and integrates ruthlessly. Average management tenure is 8+ years.
Competitive Analysis
| Competitor | Overlap | AVGO Advantage |
|---|---|---|
| NVIDIA (NVDA) | AI accelerators | AVGO custom ASICs are cheaper per inference vs GPU; hyperscalers prefer for at-scale deployment |
| Marvell (MRVL) | Custom silicon, networking | AVGO has deeper hyperscaler relationships (Google, Meta) and broader portfolio |
| AMD | AI chips, networking | AMD focused on GPU; AVGO dominates ASIC custom route |
| Intel (INTC) | Networking, foundry | AVGO has superior execution and margins |
| VMware competitors (Nutanix, Red Hat) | Virtualization | VMware has ~80% enterprise virtualization share; lock-in effect |
Moat: Broadcom's moat is structural. Custom ASIC partnerships require 2-3 year co-design cycles — once a hyperscaler commits to Broadcom, switching costs are enormous. VMware's enterprise installed base creates recurring software revenue with high retention.
Bull Case
- AI ASIC dominance accelerating: $8.2B AI revenue guided for FQ1'26 (2x QoQ). Google TPU, Meta MTIA, and reportedly a massive OpenAI deal ($100B+ through 2029). As inference demand explodes, custom chips beat GPUs on cost/watt.
- VMware integration supercharging margins: Infrastructure software now ~43% of revenue and growing double digits. VCF adoption driving subscription conversions. Gross margins expanding toward 70%.
- $73B AI backlog: Unprecedented visibility. Hyperscalers moving from experimental to production-scale AI creates a multi-year demand runway.
- FCF machine: 40.7% FCF margin fuels $10B buyback program, rising dividends, and optionality for further M&A.
- Forward P/E compression: At ~31x forward, if AI revenue hits $40B in FY2026, earnings growth could compress the multiple further — stock re-rates higher.
Bear Case
- Insider selling volume: -$1.1B net insider sales. While routine for mega-cap executives, the magnitude is notable.
- Customer concentration risk: Google, Meta, and a few hyperscalers represent a large share of AI revenue. Loss of any one would be material.
- ASIC margin pressure: Custom chips may carry lower margins than Broadcom's legacy semi business as hyperscalers demand favorable pricing at scale.
- VMware integration execution: $69B acquisition still digesting. Any stumble in VCF adoption or customer churn would hit the bull thesis.
- Macro/tariff risk: As a global semi company, Broadcom is exposed to trade restrictions, particularly with China, and potential tariff escalation under Trump administration.
- Semiconductor cyclicality: Despite AI tailwinds, the broader semi industry is cyclical. A downturn in non-AI segments could offset growth.
Historical Events
| Date | Event | Impact |
|---|---|---|
| Nov 2023 | VMware acquisition closes ($69B) | Transformed AVGO into software-heavy hybrid |
| Jul 2024 | 10-for-1 stock split | Improved retail accessibility, no fundamental change |
| Dec 2024 | FY2024 results — $51.6B revenue, $12.2B AI rev | Stock surged on AI revenue disclosure |
| Dec 10, 2025 | All-time high $412.18 | Peak euphoria after strong FQ4'25 |
| Jan-Mar 2026 | -23.9% pullback from ATH | Broader semi selloff, margin concerns, Iran war oil disruption |
| Mar 4, 2026 | FQ1'26 earnings release (after close) | Key catalyst — $8.2B AI revenue guided, $19.1B total revenue |
Recent News
| Date | Headline | Sentiment |
|---|---|---|
| Mar 4, 2026 | Markets in focus: chip stocks and critical data | 🟡 Neutral |
| Mar 4, 2026 | S&P 500 futures up; Broadcom in focus pre-earnings | 🟢 Positive |
| Mar 4, 2026 | Dell shocks Wall Street — AI rally starting? | 🟢 Positive (read-across) |
| Mar 3, 2026 | Should you buy AVGO before Thursday? | 🟢 Positive |
| Mar 2, 2026 | VMware Telco Cloud Platform 9 announced | 🟡 Neutral |
| Mar 2, 2026 | Broadcom high-stakes earnings: AI networking in shadow of NVDA volatility | 🟡 Mixed |
Dividend Profile
| Metric | Value |
|---|---|
| Quarterly Dividend | $0.65/share |
| Annual Yield | ~0.8% |
| Ex-Date (Last) | Dec 22, 2025 |
| Frequency | Quarterly |
| Payout Growth | Consistently raised since IPO |
Related ETFs
| ETF | Exposure Type |
|---|---|
| VTI (Vanguard Total Market) | 3.13% weight |
| QQQ (Invesco Nasdaq 100) | Top 10 holding |
| SMH (VanEck Semiconductor) | Major holding |
| SOXX (iShares Semi) | Top holding |
| AVGW (Roundhill AVGO WeeklyPay) | 120% leveraged single-stock |
Cross-References (Our System)
| Source | Mention |
|---|---|
| Watchlists | ai-scan, semis, bargain-bin, insider-universe |
| AI Infra Scan (03/03) | 🟢 RSI 29 — "rare entry signal for mega-cap AI infrastructure" — highest conviction oversold in scan |
| Bargain Bin (03/03) | 📈 Accumulate — NEW entry, RSI 28.7, grade A-, entry zone $308–320 |
| NVDA Ecosystem Scan | Referenced as key NVDA alternative/complement in custom silicon |
| Deep Dives | First dedicated deep dive (this file) |
Related Tickers
| Ticker | Relationship |
|---|---|
| NVDA | Primary competitor in AI accelerators (GPU vs ASIC) |
| MRVL | Custom silicon competitor, networking overlap |
| AMD | AI chip competitor (GPU-focused) |
| GOOG | Top customer (Google TPU co-design) |
| META | Top customer (MTIA custom chips) |
| TSM | Foundry partner (manufactures AVGO's chips) |
| VMW→AVGO | Acquired — now infrastructure software segment |
| ANET | Networking competitor/complement |
| QCOM | Wireless/broadband overlap |
Thesis Summary
Broadcom is the dominant custom AI silicon and enterprise infrastructure software company. At $320, the stock is -24% from its ATH with an RSI of 33 — approaching oversold territory for a company with 28% YoY revenue growth, 100% earnings beat rate, accelerating AI revenue ($8.2B guided for FQ1), and a 40.7% FCF margin. The VMware integration is executing well, adding a high-margin recurring software revenue stream.
The key catalyst is today's FQ1'26 earnings report (after close). If AI revenue hits or beats the $8.2B guide, this pullback is a gift. The $73B AI backlog and expanding hyperscaler partnerships (Google, Meta, OpenAI) provide multi-year visibility that few semis can match.
Risk: Insider selling, customer concentration, and cyclical semiconductor exposure. Watch for margin commentary on custom ASICs and VMware retention rates.
Bottom line: High-conviction accumulate in the $300–320 range. This is a rare oversold reading for one of the highest-quality AI infrastructure names in the market.
Sources
- Fundamentals figures: company-reported results (quarterly/annual filings) as available at the artifact date; predates the desk's EDGAR reconciliation gate — figures not re-verified after publication.