AVGO Broadcom Inc.

Broadcom Inc. · NASDAQ

Market Open

343.04

▲ ⁦+4.21%⁩ (+13.87)

Market Cap$1.6T

Beta1.48

52w Low52w High

289.96495.00

Last Week

⁦+2.59%⁩

EL7 Factor Analysis

How we score this

Overall89

Excellent — top fifth of the marketFalling StarF 8/9SafeCongress buyingBetter than 89% of Market stocks, per EL7's model

Factor	Score	Value	Avg	Rank
Valuation	22	42.0x	17.3x	Bottom tier
Growth	94	48.7%	7.1%	Top tier
Quality	97	26.8%	4.5%	Top tier
Safety	84	0.7x	2.6x	Top tier
Capital Return	53	0.77%	0.06%	Around median
Momentum	41	2.5%	-1.6%	Around median
Sentiment	80	27	3	Top tier

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Annual plan

$17/mo

Monthly plan

$29/mo

Analyst Consensus

This section combines price targets, revision history, analyst coverage changes, and an AI summary of what changed on the Street.

Price Target· 18 analysts setting price target

$514.37

⁦+49.9%⁩

Current Price $343.04·Median $520.00

Low

$350.00

High

$600.00

Current price

$343.04

Average target

$514.37

Street summary

Slight improvement in AVGO price target consensus

Bullish tilt

The average price target over 7 and 30 days rose from 509.61 to 514.37, an increase of 4.76 or 0.93%, while it was unchanged over the last day. The number of analysts remained at 18; current targets range from 350 to 600, with a median of 520, indicating notable variation in estimates. The current price is 321.68, below the lower end of the displayed targets.

As of 2026-10-23

Revisions momentum · 30d

⁦+0.9%⁩

Average rating

★ 4.08

Buy

Analyst coverage

Buy conviction

94%

High

Rating activity · 30d

1↑ · 3↓

Target dispersion

73%

Wide

Analyst ratings over time50 analysts rating

Strong BuyBuyHoldSellStrong Sell

Rating trend — last 12 months4.11 → 4.08

Recent analyst moves

⬇ Downgrade2026-10-27
William Blair
OutperformMarket Perform
⬇ Downgrade2026-10-27
UBS
HoldNeutral
⬆ Upgrade2026-10-27
Raymond James
Outperform

Premium content

Key Financials

Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.

StockSector medianSector averagetypical sector range

MetricValuePosition within sectorVerdict

P/E (TTM)
42.04x
7.20x57.60x
Near median
Forward P/E
17.05x
4.96x39.68x
Cheap
EV / EBITDA
31.41x
4.38x35.04x
Near median
FCF Yield
2.5%
-83.2%10.1%
Strong
Revenue Growth YoY
48.7%
-20.2%67.3%
Strong
EPS Growth YoY
99.7%
-176.3%184.8%
Strong
Gross Margin
68.8%
13.1%79.5%
Strong
ROIC
26.8%
-63.3%26.8%
Strong
Net Debt / EBITDA
0.75x
0.26x3.41x
Low debt
Dividend Yield
0.8%
0.0%1.7%
Moderate
Payout Ratio
31.6%
6.4%72.8%
Moderate
Altman Z-Score
12.25
-12.6914.02
Strong

Financial Analysis

Stock Analysis

AI-generated

Last updated: 2026-09-27Based on 2026-09-02 data

Company Overview

Broadcom operates in two interconnected segments: semiconductor solutions and infrastructure software. The first segment includes custom XPU accelerators for AI model customers, Tomahawk Ethernet switches, optical interconnect components, and non-AI semiconductor products. The software segment is built around VMware Cloud Foundation and enterprise infrastructure products; the company therefore generates revenue from supplying chips and networking systems, as well as from enterprise software and its recurring contracts.

In fiscal Q3 2026 ended 2026-08-02, revenue reached $29.6 billion, up 85.5% year over year from $16.0 billion in fiscal Q3 2025. Net income was $13.1 billion and diluted earnings per share were 2.68, while gross margin reached 69.1% and operating margin reached 53.9%. Compared with the same period of fiscal 2025, gross margin expanded by 2.0 percentage points and operating margin by 17.0 percentage points.

Semiconductor solutions represented 70% of fiscal Q3 2026 revenue at $20.8 billion, compared with 30% for infrastructure software at $8.8 billion. Within the mix, AI semiconductor revenue reached $16.7 billion, or 56% of total revenue, and XPU accelerators accounted for 73% of AI revenue. Operating cash flow was $14.2 billion, while the balance sheet recorded $24.0 billion in cash and investments against $61.1 billion in debt.

Key numbers

Q3 FY2026

Revenue: $29.6B; +85.5%vs a year earlier
Gross margin: 69.1%; +2.0ppvs a year earlier
Operating margin: 53.9%; +17.0ppvs a year earlier
Net income: $13.1B; +216.1%vs a year earlier
Diluted EPS: 2.68; +215.3%vs a year earlier
Net cash: -$37.1B

Last 12 months to 2026-08-02

Revenue: $89.1B
Net income: $38.3B; 42.9%of revenue
Free cash flow: $39.4B; 44.2%of revenue

What changed since the last analysis

On 2026-09-23, reports emerged of a SASAC review of the deployment of Broadcom switches in some Chinese government data centers, adding the possibility of a preference for domestic alternatives without any formal ban being issued or confirmed sales loss being announced.

What's Driving the Stock

AI semiconductor revenue surged to $16.7 billion in fiscal Q3 2026 ended 2026-08-02, with year-over-year growth of 221% and sequential growth of 54%, as XPU shipments rose to more than 3.5 times their prior-year level.
The range of products shipped during fiscal Q3 2026 expanded to include Ironwood TPU v7 for Anthropic and Google, production began for Google’s TPU v8i generation, and Jalapeno, the first custom accelerator for OpenAI, was also shipped.
Broadcom expects consolidated revenue of $34.8 billion for fiscal Q4 2026, including $21.7 billion from AI semiconductors, with expected year-over-year growth of 236% for this category and an expected operating margin of approximately 66%.
The company raised its fiscal 2026 AI revenue forecast to $58 billion from $56 billion and outlined a path to approximately $115 billion in fiscal 2027 and $230 billion in fiscal 2028, while confirming that it has secured the supplies required for both announced levels.
Broadcom signed a long-term agreement with Google to develop and supply future generations of TPU units and AI networking, under which it plans to deliver tens of billions of dollars’ worth of TPU units annually over several years.
Four institutions raised their price targets during the ninety days ended 2026-09-27

Buying & Selling Case

▲ Buying Case8 pts

+Year-over-year revenue growth accelerated to 85.5% in fiscal Q3 2026 ended 2026-08-02, compared with 47.9% in fiscal Q2 2026, an improvement of 37.6 percentage points.
+Gross margin expanded to 69.1% in fiscal Q3 2026, compared with 67.1% in fiscal Q3 2025, despite the increased weighting of AI semiconductors in the mix.
+Operating margin rose to 53.9% in fiscal Q3 2026, compared with 36.9% a year earlier, reflecting strong leverage from revenue growth relative to operating expense growth.
+Operating cash flow reached $40.7 billion, equivalent to 106% of net income of $38.3 billion over the last 12 months through 2026-08-02, while free cash flow reached $39.4 billion.
+Shipments of Ironwood, TPU v8i, and Jalapeno, along with the start of MTIA shipments in fiscal Q4 2026, support the AI revenue forecast of $21.7 billion for that quarter, after it reached $16.7 billion in Q3.
+

What would change this view

When: Fiscal Q4 2026

Consolidated revenue at the $34.8 billion threshold
▲ Positive
Exceeding $34.8 billion would strengthen the buying case by confirming continued demand expansion and Broadcom’s ability to convert AI orders into revenue.
▼ Negative
Falling below $34.8 billion would strengthen the selling case and raise questions about infrastructure deployment timing and supply chains’ ability to keep pace with demand.
AI semiconductor revenue at the $21.7 billion threshold
▲ Positive
Exceeding $21.7 billion would strengthen the buying case by confirming accelerating shipments of Ironwood, TPU v8i, Jalapeno, and MTIA.
▼ Negative
Falling below $21.7 billion would strengthen the selling case and raise doubts about the pace of shipments or the readiness of customer sites to accommodate XPU units.
Operating margin at the 66% threshold
▲ Positive

Valuation

The median analyst target is $518, within a range of $350 to $600 from 18 analysts, and it prices in expected growth and is inherently optimistic; the consensus average is $509.61. The industry-multiple value is $400, within a range of $245 to $713, and values Broadcom like 63 peer companies using a median earnings multiple of 51.1. The discounted cash flow model gives a value of $376, within a range of $312 to $465 and at a discount rate of 11.7%; it estimates the cash the company generates and is inherently conservative, while the no-growth value is $61, representing what remains if current after-tax operating profit stays constant forever. The industry-multiple and discounted cash flow methods are relatively close, while analyst targets are higher because they incorporate greater expected growth, and the no-growth value is much lower because it excludes any future expansion.

BuyAnalyst target: $509.61(+48.6%)

Figures in the text are as of 2026-09-27; the live price is shown at the top of the page.

FAQ

What is the primary source of Broadcom’s growth in fiscal 2026?

The largest driver is AI semiconductors, which generated $16.7 billion in fiscal Q3 2026 ended 2026-08-02, with year-over-year growth of 221%. This category represented 56% of total revenue, and XPU units accounted for 73% of AI revenue. Shipments included Ironwood TPU v7, TPU v8i, and Jalapeno, and the company expects to add MTIA shipments in fiscal Q4 2026.

Is Broadcom’s growth limited to custom AI chips?

No. Infrastructure software generated $8.8 billion in revenue in fiscal Q3 2026 ended 2026-08-02, an increase of 29% year over year. This business represented 30% of total revenue, and its annual recurring revenue grew by 15%. The company also introduced VMware Private AI Cloud to enable enterprises to run AI applications and agents with security, compliance, and data-protection controls.

What are the key execution risks to the AI forecasts for fiscal 2027 and 2028?

Earnings callEDGAR filings30-day newsInsider activity

Automated analysis for informational purposes only — not investment advice.

, with no reductions; the increases included targets of $515 from Citi, $600 from Cantor Fitzgerald, $505 from Morgan Stanley, and $575 from BMO Capital.

The AI revenue path of approximately $115 billion in fiscal 2027 and $230 billion in fiscal 2028 provides extended demand visibility, and the company said it has secured the supplies required for these two levels even though customer demand exceeds them.

+The infrastructure software business provides diversification beyond chips; it generated $8.8 billion in revenue in fiscal Q3 2026, with year-over-year growth of 29%, while annual recurring revenue grew by 15%.

+Analyst sentiment strengthened with four price target increases and no reductions during the ninety days ended 2026-09-27, while the sentiment pillar of the EL7 score stood at 84 out of 100 within the industry, ranking 28 out of 164, a measure of the direction of market estimates and opinions.

▼ Selling Case8 pts

−Inventory grew to $4.5 billion in fiscal Q3 2026 ended 2026-08-02, compared with $2.2 billion a year earlier, an increase of 107.5%, a pace exceeding revenue growth of 85.5% that may increase the sensitivity of results to any slowdown in deliveries or demand.
−Total debt was $61.1 billion against $24.0 billion in cash and investments in fiscal Q3 2026, keeping leverage high despite strong cash flows and the repayment of $5.6 billion in long-term debt during the quarter.
−AI revenue has become concentrated among six XPU customers and represented 56% of total revenue in fiscal Q3 2026; therefore, a growing share of growth depends on the spending and deployment plans of a limited number of AI laboratories and hyperscalers.
−The fiscal 2027 and 2028 forecasts depend on the availability of land, power, data center shells, advanced chips, substrates, and HBM memory, and management acknowledged that demand exceeds available capacity and that the timing of site readiness may delay deployment.
−The company expects gross margin to decline to approximately 73% in fiscal Q4 2026 as higher-memory-content XPU units account for a larger share of the mix, making continued operating leverage necessary to offset product-mix pressure.
−The SASAC review reported on 2026-09-23 regarding the use of Broadcom switches in some Chinese government data centers could lead to a preference for domestic alternatives such as Huawei, H3C, and Ruijie Networks; as of that date, no formal ban had been issued or confirmed sales loss reported, and the scope of revenue exposure remained unclear.
−The AI XPV platform may include limited residual-value guarantees as contingent liabilities, while the execution of Anthropic and OpenAI projects depends on securing financing and building infrastructure; the company confirmed that it will evaluate each financing arrangement individually without specifying a uniform cap on future exposure.
−The momentum pillar of the EL7 score stood at 29 out of 100 within the industry, ranking 121 out of 170, a measure of market trend strength relative to industry companies that places Broadcom below most of its peers on this pillar.

Achieving an operating margin above 66% would strengthen the buying case by demonstrating that operating leverage offsets the mix pressure from higher-memory-content XPU units.

▼ Negative

An operating margin below 66% would strengthen the selling case and indicate that revenue growth does not fully offset mix pressure and expansion costs.

When: Fiscal 2026

AI revenue at the $58 billion threshold
▲ Positive
Exceeding $58 billion would strengthen the buying case by confirming annual shipment execution above the raised forecast and the company’s ability to meet strong demand.
▼ Negative
Falling below $58 billion would strengthen the selling case and call into question the announced growth path for fiscal 2027 and 2028.

Broadcom is targeting AI revenue of approximately $115 billion in fiscal 2027 and $230 billion in fiscal 2028. Execution depends on the availability of advanced chips, substrates, and HBM memory, as well as customer access to land, power, and data center shells. The company will begin using capacity from its substrate plant in Singapore during fiscal 2027, but it acknowledged that any of these elements could become a bottleneck at different times. The XPU business is also concentrated among six customers, increasing the impact of any delays in preparing their sites.

How strong is Broadcom’s ability to convert earnings into cash?

Operating cash flow reached $40.7 billion over the last 12 months through 2026-08-02, equivalent to 106% of net income of $38.3 billion. Free cash flow reached $39.4 billion during the same period, while the company repurchased $8.4 billion of shares. In fiscal Q3 2026 ended 2026-08-02, operating cash flow reached $14.2 billion, compared with $61.1 billion in debt and $24.0 billion in cash and investments.

What should investors monitor in Broadcom’s results on 2026-12-09?

The company expects consolidated revenue of $34.8 billion in fiscal Q4 2026, with year-over-year growth of 93%. This includes $21.7 billion in AI semiconductor revenue, with year-over-year growth of 236%, and infrastructure software revenue of approximately $8.7 billion. It also expects an operating margin of approximately 66% and a gross margin of approximately 73% as XPU units and memory account for a greater share of the mix.

What was the volume of Broadcom insider trading through 2026-09-27?

The ninety days ended 2026-09-27 saw nineteen open-market sales executed by three insiders with a total value of $270.2 million, compared with no recorded purchases. A total of $250.0 million was sold under predetermined 10b5-1 trading plans, while sales outside these plans totaled $20.2 million. The largest seller was a board member, with sales valued at $250.0 million, and these figures describe the transactions without drawing any conclusion about the stock.

Company Profile