Broadcom Inc
- Industry
- AI Chips
- Exchange
- US
- Country
- USA
- IPO date
- Aug 6, 2009
- Employees
- 33,000
- Website
- www.broadcom.com
Composite valuation range · conservative $173–$216 / fair $263–$355 / optimistic $423–$465. At $411.35, Between the fair and optimistic ranges.
At publication $481.57 (Jun 3, 2026)
Great company, bad price. AI revenue is still accelerating (Q1 at 8.4 billion, Q2 guided to 10.7 billion) with an FCF margin near 42%, yet the current price of 481.57 dollars implies a TTM free-cash-flow yield of only about 1.3% (far below the 4.46% on the 10-year Treasury), already pricing in AI optimism that remains unverified ahead of Q2. Rating Avoid: a high-quality compounder whose price has front-run the very catalysts it still has to deliver, so we cut from Watch to Avoid.
Broadcom runs a dual engine of high-barrier semiconductors plus VMware software, with FY2025 revenue of 63.89 billion and free cash flow of 26.9 billion dollars; AI semiconductors are powering ahead, yet at roughly 411 dollars the stock already trades near 84x trailing GAAP earnings and 69x TTM free cash flow, leaving no margin of safety. Rating Watch: a high-quality, cash-rich platform priced for near-flawless execution, with an ideal entry of 160 to 220 dollars.
Broadcom Inc. designs, develops, and supplies various semiconductor devices and infrastructure software solutions internationally. The company operates in two segments: Semiconductor Solutions and Infrastructure Software. The company offers networking connectivity, such as custom silicon solutions, ethernet switching & routing, ethernet NIC controllers, physical layer devices, and fiber optic components; wireless device connectivity, including RF semiconductor devices, connectivity solutions, custom touch controllers, and inductive charging ASICS; servers and storage system solutions, such as PCIE switches, SAS & raid products, fibre channel products, and HDD & SSD solutions; broadband solutions, includes set-top box, and broadband access; and industrial. The company also offers a private cloud software portfolio, including the VMware Cloud Foundation, Edge, vSphere foundation, telco cloud platform, private AI, live recovery, application networking and security, application development and data services; mainframe software, such as AIOPS & automation, database & data management, DEVX & DEVOPS, cybersecurity & compliance management, beyond code programs, foundational & open mainframe solutions; cybersecurity, such as endpoint, network, information, application security, and identity & access management; enterprise software; and fc san management. Its products are used in various applications in enterprise and data center networking, including artificial intelligence networking and connectivity, home connectivity, set-top boxes, broadband access, telecommunication equipment, wireless device and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Broadcom Inc. was founded in 1961 and is headquartered in Palo Alto, California.
Data from EODHD, shown in the reporting currency; for reference only, not investment advice.
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