Broadcom (AVGO)
Market Price (7/24/2026): $391.57 | Market Cap: $1.9 TrilInvestor Relations Sector: Information Technology | Industry: Semiconductors
Broadcom (AVGO)
Market Price (7/24/2026): $391.57Market Cap: $1.9 TrilSector: Information TechnologyIndustry: Semiconductors
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 32% Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 44% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 45%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 43%, CFO LTM is 34 Bil, FCF LTM is 33 Bil Stock buyback supportStock Buyback 3Y Total is 30 Bil Low stock price volatilityVol 12M is 47% Megatrend and thematic driversMegatrends include Artificial Intelligence, Cloud Computing, 5G & Advanced Connectivity, Cybersecurity, Show more. | Significant share based compensationSBC/Rev LTMShare Based Compensation / Revenue (Sales), Last Twelve Months (LTM) is 12% Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -2.2% Key risksAVGO key risks include [1] heavy reliance on a few key AI customers, Show more. |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 32% |
| Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 44% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 45%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 43%, CFO LTM is 34 Bil, FCF LTM is 33 Bil |
| Stock buyback supportStock Buyback 3Y Total is 30 Bil |
| Low stock price volatilityVol 12M is 47% |
| Megatrend and thematic driversMegatrends include Artificial Intelligence, Cloud Computing, 5G & Advanced Connectivity, Cybersecurity, Show more. |
| Significant share based compensationSBC/Rev LTMShare Based Compensation / Revenue (Sales), Last Twelve Months (LTM) is 12% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -2.2% |
| Key risksAVGO key risks include [1] heavy reliance on a few key AI customers, Show more. |
Qualitative Assessment
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Broadcom (AVGO) stock has gained about 25% since 3/31/2026 because of the following key factors:
1. Broadcom's fiscal Q2 2026 earnings significantly surpassed analyst expectations, driven by strong AI semiconductor demand.
Broadcom (whose fiscal year ends October 31st) reported record revenue of $22.2 billion for its second fiscal quarter of 2026 (ended May 3, 2026), representing a 48% year-over-year increase and exceeding consensus estimates of $22.13 billion. The company's non-GAAP diluted EPS reached $2.44, beating analyst estimates of $2.32 by 5.17%. A key driver was AI semiconductor revenue, which soared to $10.8 billion, marking a 143% year-over-year growth.
2. Robust fiscal Q3 2026 guidance and sustained AI momentum fueled investor confidence.
Building on its strong Q2 performance, Broadcom issued an optimistic outlook for fiscal Q3 2026, projecting consolidated revenue of approximately $29.4 billion, an 84% year-over-year increase. The company anticipates AI semiconductor revenue to further accelerate, forecasting over 200% year-over-year growth to $16.0 billion in fiscal Q3 2026. Broadcom highlighted long-term agreements with major technology companies, including Google, Anthropic, and OpenAI, securing demand for its AI infrastructure solutions.
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Broadcom (AVGO) stock has gained about 25% since 3/31/2026 because of the following key factors:
1. Broadcom's fiscal Q2 2026 earnings significantly surpassed analyst expectations, driven by strong AI semiconductor demand.
Broadcom (whose fiscal year ends October 31st) reported record revenue of $22.2 billion for its second fiscal quarter of 2026 (ended May 3, 2026), representing a 48% year-over-year increase and exceeding consensus estimates of $22.13 billion. The company's non-GAAP diluted EPS reached $2.44, beating analyst estimates of $2.32 by 5.17%. A key driver was AI semiconductor revenue, which soared to $10.8 billion, marking a 143% year-over-year growth.
2. Robust fiscal Q3 2026 guidance and sustained AI momentum fueled investor confidence.
Building on its strong Q2 performance, Broadcom issued an optimistic outlook for fiscal Q3 2026, projecting consolidated revenue of approximately $29.4 billion, an 84% year-over-year increase. The company anticipates AI semiconductor revenue to further accelerate, forecasting over 200% year-over-year growth to $16.0 billion in fiscal Q3 2026. Broadcom highlighted long-term agreements with major technology companies, including Google, Anthropic, and OpenAI, securing demand for its AI infrastructure solutions.
3. Favorable broader semiconductor market conditions, particularly in AI infrastructure, supported Broadcom's growth.
The overall semiconductor market experienced a "complex upcycle" during fiscal Q2 2026, with the served market projected to reach $433 billion in 2026, a 7.9% year-over-year increase. This growth was largely propelled by escalating investments in AI infrastructure, driving demand for AI servers, hyperscale data centers, advanced networking equipment, and high-bandwidth memory (HBM) platforms. Deloitte's 2026 Semiconductor Industry Outlook projected global annual sales to reach $975 billion this year, fueled by this intensifying AI infrastructure boom.
4. Positive analyst sentiment and increased price targets provided additional upward pressure.
Following Broadcom's strong earnings report and guidance, numerous analysts reiterated "Buy" or "Outperform" ratings and raised their price targets for the stock. For example, Bank of America increased its price objective from $450.00 to $530.00 on June 4th. HSBC also raised its price target to $600 on June 1, anticipating that AI would drive revenues even higher than market expectations in the second half of the year. The consensus rating from 26 analysts remained a "Buy" with an average price target of $501.58.
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Stock Movement Drivers
Fundamental Drivers
The 27.0% change in AVGO stock from 3/31/2026 to 7/23/2026 was primarily driven by a 10.5% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 3312026 | 7232026 | Change |
|---|---|---|---|
| Stock Price ($) | 309.02 | 392.47 | 27.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 68,282 | 75,465 | 10.5% |
| Net Income Margin (%) | 36.6% | 38.8% | 6.2% |
| P/E Multiple | 58.7 | 63.5 | 8.3% |
| Shares Outstanding (Mil) | 4,741 | 4,747 | -0.1% |
| Cumulative Contribution | 27.0% |
Market Drivers
3/31/2026 to 7/23/2026| Return | Correlation | |
|---|---|---|
| AVGO | 27.0% | |
| Market (SPY) | 13.5% | 55.5% |
| Sector (XLK) | 34.3% | 71.5% |
Fundamental Drivers
The 13.8% change in AVGO stock from 12/31/2025 to 7/23/2026 was primarily driven by a 18.1% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 12312025 | 7232026 | Change |
|---|---|---|---|
| Stock Price ($) | 344.83 | 392.47 | 13.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 63,887 | 75,465 | 18.1% |
| Net Income Margin (%) | 36.2% | 38.8% | 7.3% |
| P/E Multiple | 70.6 | 63.5 | -10.0% |
| Shares Outstanding (Mil) | 4,733 | 4,747 | -0.3% |
| Cumulative Contribution | 13.8% |
Market Drivers
12/31/2025 to 7/23/2026| Return | Correlation | |
|---|---|---|
| AVGO | 13.8% | |
| Market (SPY) | 8.5% | 59.4% |
| Sector (XLK) | 24.1% | 73.2% |
Fundamental Drivers
The 43.4% change in AVGO stock from 6/30/2025 to 7/23/2026 was primarily driven by a 71.6% change in the company's Net Income Margin (%).| (LTM values as of) | 6302025 | 7232026 | Change |
|---|---|---|---|
| Stock Price ($) | 273.64 | 392.47 | 43.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 57,046 | 75,465 | 32.3% |
| Net Income Margin (%) | 22.6% | 38.8% | 71.6% |
| P/E Multiple | 99.7 | 63.5 | -36.3% |
| Shares Outstanding (Mil) | 4,707 | 4,747 | -0.8% |
| Cumulative Contribution | 43.4% |
Market Drivers
6/30/2025 to 7/23/2026| Return | Correlation | |
|---|---|---|
| AVGO | 43.4% | |
| Market (SPY) | 20.5% | 57.0% |
| Sector (XLK) | 41.5% | 70.6% |
Fundamental Drivers
The 369.1% change in AVGO stock from 6/30/2023 to 7/23/2026 was primarily driven by a 150.5% change in the company's P/E Multiple.| (LTM values as of) | 6302023 | 7232026 | Change |
|---|---|---|---|
| Stock Price ($) | 83.67 | 392.47 | 369.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 35,042 | 75,465 | 115.4% |
| Net Income Margin (%) | 39.1% | 38.8% | -0.5% |
| P/E Multiple | 25.4 | 63.5 | 150.5% |
| Shares Outstanding (Mil) | 4,150 | 4,747 | -12.6% |
| Cumulative Contribution | 369.1% |
Market Drivers
6/30/2023 to 7/23/2026| Return | Correlation | |
|---|---|---|
| AVGO | 369.1% | |
| Market (SPY) | 72.4% | 61.8% |
| Sector (XLK) | 109.1% | 73.9% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| AVGO Return | 56% | -13% | 104% | 110% | 51% | 15% | 911% |
| Peers Return | 61% | -42% | 94% | 52% | 21% | 79% | 493% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 10% | 100% |
Monthly Win Rates [3] | |||||||
| AVGO Win Rate | 75% | 58% | 83% | 75% | 67% | 43% | |
| Peers Win Rate | 62% | 37% | 60% | 53% | 52% | 54% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 43% | |
Max Drawdowns [4] | |||||||
| AVGO Max Drawdown | -14% | -35% | -12% | -25% | -40% | -25% | |
| Peers Max Drawdown | -22% | -50% | -25% | -31% | -39% | -27% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: NVDA, QCOM, MRVL, AMD, TXN. See AVGO Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 7/23/2026 (YTD)
How Low Can It Go
| Event | AVGO | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -35.8% | -18.8% |
| % Gain to Breakeven | 55.9% | 23.1% |
| Time to Breakeven | 39 days | 79 days |
| 2024 Yen Carry Trade Unwind | ||
| % Loss | -21.9% | -7.8% |
| % Gain to Breakeven | 28.0% | 8.5% |
| Time to Breakeven | 48 days | 18 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -11.5% | -9.5% |
| % Gain to Breakeven | 12.9% | 10.5% |
| Time to Breakeven | 50 days | 24 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -34.1% | -24.5% |
| % Gain to Breakeven | 51.7% | 32.4% |
| Time to Breakeven | 157 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -46.8% | -33.7% |
| % Gain to Breakeven | 88.1% | 50.9% |
| Time to Breakeven | 79 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -15.2% | -19.2% |
| % Gain to Breakeven | 17.9% | 23.8% |
| Time to Breakeven | 44 days | 105 days |
In The Past
Broadcom's stock fell -35.8% during the 2025 US Tariff Shock. Such a loss loss requires a 55.9% gain to breakeven.
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| Event | AVGO | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -35.8% | -18.8% |
| % Gain to Breakeven | 55.9% | 23.1% |
| Time to Breakeven | 39 days | 79 days |
| 2024 Yen Carry Trade Unwind | ||
| % Loss | -21.9% | -7.8% |
| % Gain to Breakeven | 28.0% | 8.5% |
| Time to Breakeven | 48 days | 18 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -34.1% | -24.5% |
| % Gain to Breakeven | 51.7% | 32.4% |
| Time to Breakeven | 157 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -46.8% | -33.7% |
| % Gain to Breakeven | 88.1% | 50.9% |
| Time to Breakeven | 79 days | 140 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -26.7% | -17.9% |
| % Gain to Breakeven | 36.3% | 21.8% |
| Time to Breakeven | 42 days | 123 days |
In The Past
Broadcom's stock fell -35.8% during the 2025 US Tariff Shock. Such a loss loss requires a 55.9% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Broadcom (AVGO)
Broadcom Inc. (AVGO) is a leading global technology company that primarily designs, develops, and supplies a wide range of semiconductor devices. These devices are crucial components, largely focusing on complex digital, mixed-signal, and analog integrated circuits. Beyond its strong semiconductor business, Broadcom also operates a significant segment dedicated to infrastructure software.
In its Semiconductor Solutions segment, Broadcom's extensive product portfolio includes system-on-chips (SoCs) for set-top boxes, various networking equipment (such as cable, digital subscriber line, and wireless LAN), and Ethernet switching and routing products. The company also provides RF front-end modules for wireless communication, storage controllers for data centers, and a variety of fiber optic and motion control components. These essential components power critical infrastructure and devices across numerous industries.
Broadcom's products are integral to a diverse set of applications and markets worldwide. Its semiconductor solutions are vital for enterprise and data center networking, home connectivity, broadband access, and telecommunications equipment. Additionally, the company serves the smartphone and base station markets, data center servers and storage systems, industrial automation, power generation, and electronic display sectors, making it a foundational supplier for the digital economy.
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Broadcom is like Intel for the data center and networking world, providing the specialized chips that power servers, switches, and communication equipment.
Broadcom is like a blend of Intel's chipmaking and Oracle's enterprise software, supplying foundational technology for the digital economy.
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- Networking and Broadband Communication Chips: Broadcom develops system-on-chips (SoCs) for a wide range of applications including set-top boxes, broadband access, wireless local area networks, and Ethernet switching and routing.
- Wireless and RF Components: The company provides RF front-end modules, filters, power amplifiers, and SoCs for Wi-Fi, Bluetooth, and global positioning systems used in smartphones and base stations.
- Storage Connectivity and Controllers: Broadcom offers various controllers and adapters for storage and server systems, such as SAS, RAID, Fibre Channel host bus adapters, PCIe switches, and custom flash controllers.
- Optical and Industrial Devices: This category includes fiber optic transmitter and receiver components, optocouplers, industrial fiber optics, and motion control encoders and subsystems for diverse applications.
- Infrastructure Software: Broadcom provides a suite of software solutions primarily aimed at enterprise and data center management, though specific product names are not detailed here.
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Broadcom Inc. (AVGO) primarily sells its semiconductor devices and infrastructure software to other companies, which integrate Broadcom's products into their own offerings or use them as essential components in their operations. Based on the company's product descriptions and common industry knowledge, its major customers include:
- Apple Inc. (AAPL): A highly significant customer for Broadcom's RF front end modules, Wi-Fi, Bluetooth, and GPS/GNSS SoCs, and custom touch controllers, which are integrated into Apple's smartphones and other mobile devices. Apple consistently accounts for a substantial portion of Broadcom's revenue.
- Cisco Systems, Inc. (CSCO): A major customer for Broadcom's Ethernet switching and routing merchant silicon products, embedded processors, and physical layer components, used in Cisco's enterprise and data center networking equipment.
- Dell Technologies Inc. (DELL): A key customer for Broadcom's serial attached SCSI (SAS) and redundant array of independent disks (RAID) controllers and adapters, peripheral component interconnect express (PCIe) switches, and Fibre Channel host bus adapters, which are critical for Dell's servers and storage systems.
- Hewlett Packard Enterprise Company (HPE): Similar to Dell, HPE utilizes Broadcom's components like SAS/RAID controllers, PCIe switches, and Fibre Channel host bus adapters for its enterprise servers, storage, and networking solutions.
- Other major companies in telecommunications equipment (e.g., Ericsson, Nokia), broadband access, and industrial automation sectors also purchase Broadcom's specialized components, though specific names are not consistently disclosed as major customers in the same way as Apple.
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Major Suppliers:
- Taiwan Semiconductor Manufacturing Company (TSM)
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Hock E. Tan, President and Chief Executive Officer
Hock E. Tan has served as President and Chief Executive Officer of Broadcom since March 2006, leading its transformation and growth through strategic acquisitions. Prior to Broadcom, he was chairman of the board of Integrated Device Technology from 2005 to 2008 and President and Chief Executive Officer of Integrated Circuit Systems from 1999 to 2005. Mr. Tan also held senior management positions at General Motors and PepsiCo, served as Vice President of Finance for Commodore International from 1992 to 1994, and was Managing Director of Hume Industries in Malaysia from 1983 to 1988. He co-founded and served as Managing Director of Pacven Investment, a venture capital fund in Singapore, from 1988 to 1992. He led the sale of Integrated Circuit Systems to Integrated Device Technology in 2005. His career is characterized by an extensive track record in leading and integrating companies through mergers and acquisitions, significantly expanding their market reach and technological capabilities.
Kirsten Spears, Chief Financial Officer and Chief Accounting Officer
Kirsten Spears is the Chief Financial Officer and Chief Accounting Officer at Broadcom, where she oversees all financial functions including planning, funding, and the integration of acquisitions such as VMware. She previously served as Vice President and Corporate Controller at Broadcom from May 2014 to December 2020. Before joining Broadcom, Ms. Spears was the Vice President and Corporate Controller at LSI Corporation, having joined LSI in September 1997 and holding various management positions in accounting and reporting before becoming Corporate Controller in 2007. Her earlier career included roles in audit at PriceWaterhouseCoopers, managing accounting functions at Raychem, and managing branch operations at Bank of America.
Charlie Kawwas, Ph.D., President, Semiconductor Solutions Group
Charlie Kawwas is the President of the Semiconductor Solutions Group at Broadcom, responsible for the company's 15 Semiconductor Divisions and the Brocade Storage Networking Division, and also leads Global Operations and Intellectual Property. Before this role, he was Broadcom's Chief Operating Officer from December 2020 to July 2022, and Senior Vice President and Chief Sales Officer from May 2014. Dr. Kawwas joined Broadcom through the acquisition of LSI, where he was the head of Worldwide Sales. His prior experience at LSI included Vice President of Sales and Marketing for the networking division and Vice President of Marketing for the networking and storage products group. He also held several senior management and engineering positions at Nortel before joining LSI.
Ram Velaga, President, Infrastructure Software Group
Ram Velaga serves as the President of the Infrastructure Software Group at Broadcom. He is also the Senior Vice President and General Manager of the Core Switching Group, focusing on product management and data center technologies. His professional background includes significant experience at Cisco Systems, where he honed his skills in product management and led various teams within the Data Center Technology Group.
Mark Brazeal, Chief Legal and Corporate Affairs Officer
Mark Brazeal holds the position of Chief Legal and Corporate Affairs Officer at Broadcom, overseeing the company's legal and corporate affairs.
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Key Risks to Broadcom (AVGO)
Broadcom Inc. (AVGO) faces several key risks to its business operations and financial performance, primarily stemming from customer relationships, integration challenges from recent acquisitions, and global geopolitical and supply chain vulnerabilities.
The most significant risk is customer concentration. A substantial portion of Broadcom's revenue, particularly from its AI custom silicon and wireless components, is derived from a limited number of major customers, including prominent hyperscalers like Google, Apple, Meta, Anthropic, and Amazon. Any shift in these key relationships, such as a customer opting for in-house chip production, switching to a competitor due to price adjustments, or significantly reducing orders, could lead to a multi-billion dollar revenue gap and materially impact the company's financial results.
Another considerable risk stems from the integration and customer retention challenges following the VMware acquisition. Broadcom's strategy, which has included significant price increases (reportedly between 800% and 1,500% for some European customers) and a shift to subscription-only licensing for VMware products, has led to customer dissatisfaction and a potential exodus of users seeking alternative solutions. This could result in a loss of high-margin recurring software revenue and negatively affect Broadcom's profitability. Furthermore, the integration of VMware presents operational challenges in aligning product roadmaps and fostering a cohesive organizational culture.
Finally, geopolitical risks and supply chain disruptions pose ongoing threats. Broadcom's extensive global operations, including a significant revenue exposure to China (approximately 30%), make it vulnerable to escalating trade wars, export controls, and potential retaliatory measures. Additionally, the company relies heavily on a limited number of contract manufacturers and suppliers, notably TSMC. This dependence introduces risks related to capacity constraints, manufacturing disruptions, and broader geopolitical tensions, particularly concerning key manufacturing regions.
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1. Custom Silicon Development by Hyperscalers and Major Customers: Large cloud providers (hyperscalers) and major tech companies are increasingly designing their own custom semiconductor devices for critical infrastructure components, such as networking switches, AI accelerators, and smart NICs. This vertical integration strategy reduces their reliance on merchant silicon providers like Broadcom, directly threatening Broadcom's market share and profitability in high-value data center and enterprise semiconductor segments. This trend reflects a fundamental shift in how key customers procure and deploy essential hardware, aiming for optimized performance and cost.
2. Industry Shift to Cloud-Native Architectures and Software-as-a-Service (SaaS) for Infrastructure Software: The broader enterprise software market, which Broadcom's Infrastructure Software segment addresses, is undergoing a significant transformation towards cloud-native architectures and subscription-based SaaS models. Enterprises are increasingly adopting solutions offered natively by public cloud providers or from born-in-the-cloud vendors. This trend challenges Broadcom's acquired software portfolio, which historically has strong roots in on-premise deployments and traditional licensing models, potentially eroding demand for legacy solutions if not effectively transitioned to modern consumption models.
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Broadcom Inc. (AVGO) operates in two primary segments: Semiconductor Solutions and Infrastructure Software. The company addresses several significant global markets within these segments.
Infrastructure Software Segment
- Broadcom has stated that its Infrastructure Software segment had an addressable market of more than $100 billion as of November 2021.
- The broader global enterprise software market was valued at approximately $539.45 billion in 2024 and is projected to grow to $923.06 billion by 2033. Another estimate places the global enterprise software market at $899.9 billion in 2024, when using a broader definition that includes infrastructure, security software, and databases.
- Within the software segment, the global virtualization software industry, which includes offerings like VMware, was valued at $65 billion in 2023 and is projected to reach $90 billion by 2026. The global server virtualization market specifically was estimated at $9.15 billion in 2024 and is projected to reach $17.25 billion by 2033. VMware holds nearly 40% of the virtual machine market share globally.
Semiconductor Solutions Segment
- RF Front End Modules: The global RF front-end module market size was valued at $25.6 billion in 2024 and is estimated to reach $65.0 billion by 2033. Another projection indicates the market was estimated at $28.7 billion in 2025 and is expected to grow to $87.7 billion by 2035. The Asia-Pacific region dominated this market in 2024.
- Data Center Networking and Ethernet Switching:
- The global data center networking market size was estimated at $38.49 billion in 2024 and is projected to reach $154.83 billion by 2033. Other estimates include $39.52 billion in 2025, projected to reach $114.08 billion by 2034, or $55.64 billion in 2025, projected to reach $139.08 billion by 2031. North America held the largest revenue share in the data center networking market in both 2024 and 2025.
- The global Ethernet switch market size was valued at $43.84 billion in 2025 and is projected to reach $76.4 billion by 2034. Another report valued the global Ethernet switch market at $18.2 billion in 2024, with a projection to reach $29.6 billion by 2034.
- The global Ethernet switch chips market size was valued at $3.50 billion in 2024 and is projected to grow to $5.10 billion by 2032. Broadcom is a significant player in the Ethernet switch chips market, holding approximately 54.6% revenue share in 2024.
- Broadband Access Equipment: The global broadband access equipment market size was valued at $139.71 billion in 2023 and is projected to grow to $231.33 billion by 2032. Another source indicates the market size reached $16.2 billion in 2024 and is projected to achieve $33.1 billion by 2033. North America is noted as the largest market, while Asia-Pacific also holds a significant share.
- Fiber Optic Components: The global optical fiber components market size was valued at $26.53 billion in 2024 and is expected to reach $50.20 billion by 2032. Another projection shows the fiber optic components market growing from $36.69 billion in 2025 to $58.65 billion by 2030. Asia-Pacific dominated this market with a 44.5% revenue share in 2024.
- AI Semiconductors / Custom AI Chips: Broadcom's AI chip sales surged by 65% in fiscal year 2025, reaching $20 billion and accounting for over 31% of its total revenue. The company's management has projected that AI semiconductor revenue alone could exceed $100 billion by 2027.
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Broadcom (AVGO) is expected to drive future revenue growth over the next two to three years through several key initiatives and market trends:
- Accelerated Growth in AI Semiconductors: Broadcom anticipates substantial revenue growth from its Artificial Intelligence (AI) semiconductor business, particularly from custom AI accelerators (XPUs) and AI networking chips. The company projects significant year-over-year increases, with management having a line of sight to achieve AI revenue from chips exceeding $100 billion in 2027. This growth is fueled by strong demand from hyperscale customers for both training and inference in AI semiconductors, with custom accelerator business more than doubling year-over-year.
- Expansion of the Infrastructure Software Segment through VMware: The strategic acquisition of VMware and its transition to a subscription-based model is a crucial driver for Broadcom's infrastructure software revenue. This segment is expected to deliver stable, recurring revenue streams with anticipated low double-digit percentage growth. VMware Cloud Foundation (VCF) is highlighted as a key growth driver, offering a full-stack private cloud solution that contributes to the infrastructure software's high gross margins.
- Expanding Customer Base for Custom AI Accelerators: Broadcom is actively qualifying new custom AI chip customers, which is expected to further accelerate its AI revenue growth. The company has secured component supply for 2026 through 2028 to meet this demand, and has potential for additional XPU sales with other customers in discussions. This expansion beyond existing hyperscaler relationships contributes to the significant backlog of AI-related products.
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Share Repurchases
- Broadcom's Board of Directors authorized a new share repurchase program of up to $10 billion through December 31, 2026.
- As of February 2026, $7.5 billion remained from a previous share repurchase authorization, also extended through the end of calendar year 2026.
- In the first quarter of fiscal year 2026 (ended February 1, 2026), Broadcom repurchased $7.8 billion of common stock. The company reported returning $10.9 billion to shareholders in Q1 FY26 through dividends and share repurchases.
- Broadcom executed share repurchases of $6.4 billion in fiscal year 2025, $7.176 billion in fiscal year 2024, and $5.824 billion in fiscal year 2023.
Share Issuance
- While specific dollar amounts for share issuances are not readily available, Broadcom's shares outstanding increased by 1.57% in 2025 to 4.853 billion, by 11.84% in 2024 to 4.778 billion, and by 0.95% in 2023 to 4.272 billion.
- The acquisition of VMware in November 2023 was a cash-and-stock transaction, implying some shares were issued as part of the deal.
Outbound Investments
- Broadcom completed the acquisition of VMware in a cash-and-stock transaction valued at $69 billion on November 22, 2023. This strategic move aimed to expand Broadcom's infrastructure software segment.
- Net acquisitions/divestitures for the twelve months ending October 31, 2025, amounted to $600 million.
Capital Expenditures
- Broadcom's capital expenditures were $623 million in fiscal year 2025, $548 million in fiscal year 2024, and $452 million in fiscal year 2023.
- For the first quarter of fiscal year 2026, capital expenditures were $250 million.
- Capital expenditures generally focus on maintaining existing assets and expanding property, plant, and equipment to support its semiconductor and infrastructure software solutions businesses.
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 247.16 |
| Mkt Cap | 569.6 |
| Rev LTM | 40,970 |
| Op Inc LTM | 9,018 |
| FCF LTM | 10,538 |
| FCF 3Y Avg | 8,160 |
| CFO LTM | 12,005 |
| CFO 3Y Avg | 10,104 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 33.2% |
| Rev Chg 3Y Avg | 17.2% |
| Rev Chg Q | 32.7% |
| QoQ Delta Rev Chg LTM | 7.3% |
| Op Inc Chg LTM | 54.2% |
| Op Inc Chg 3Y Avg | 130.9% |
| Op Mgn LTM | 30.8% |
| Op Mgn 3Y Avg | 31.2% |
| QoQ Delta Op Mgn LTM | 1.1% |
| CFO/Rev LTM | 37.3% |
| CFO/Rev 3Y Avg | 36.2% |
| FCF/Rev LTM | 25.5% |
| FCF/Rev 3Y Avg | 25.2% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 569.6 |
| P/S | 20.6 |
| P/Op Inc | 47.5 |
| P/EBIT | 47.0 |
| P/E | 55.9 |
| P/CFO | 47.9 |
| Total Yield | 2.7% |
| Dividend Yield | 0.4% |
| FCF Yield 3Y Avg | 1.7% |
| D/E | 0.0 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -1.6% |
| 3M Rtn | 15.6% |
| 6M Rtn | 34.4% |
| 12M Rtn | 48.3% |
| 3Y Rtn | 293.0% |
| 1M Excs Rtn | - |
| 3M Excs Rtn | - |
| 6M Excs Rtn | - |
| 12M Excs Rtn | - |
| 3Y Excs Rtn | - |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Semiconductor solutions | 36,858 | 30,096 | 28,182 | 25,818 | 20,383 |
| Infrastructure software | 27,029 | 21,478 | 7,637 | 7,385 | 7,067 |
| Total | 63,887 | 51,574 | 35,819 | 33,203 | 27,450 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Semiconductor solutions | 21,232 | 16,759 | 16,486 | 15,075 | 10,976 |
| Infrastructure software | 20,765 | 13,977 | 5,639 | 5,219 | 4,936 |
| Acquisition-related costs | -216 | -549 | -252 | ||
| Restructuring and other charges | -667 | -1,787 | -248 | ||
| Stock-based compensation | -7,568 | -5,670 | -2,171 | ||
| Amortization of acquisition-related intangible assets | -8,062 | -9,267 | -3,247 | ||
| Unallocated expenses | -6,069 | -7,393 | |||
| Total | 25,484 | 13,463 | 16,207 | 14,225 | 8,519 |
Price Behavior
| Market Price | $392.47 | |
| Market Cap ($ Bil) | 1,863.1 | |
| First Trading Date | 08/06/2009 | |
| Distance from 52W High | -18.4% | |
| 50 Days | 200 Days | |
| DMA Price | $399.74 | $363.59 |
| DMA Trend | up | indeterminate |
| Distance from DMA | -1.8% | 7.9% |
| 3M | 1YR | |
| Volatility | 53.5% | 47.3% |
| Downside Capture | 280.23 | 214.56 |
| Upside Capture | 199.35 | 214.48 |
| Correlation (SPY) | 55.5% | 57.5% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 2.04 | 2.21 | 2.15 | 2.01 | 2.12 | 2.00 |
| Up Beta | 1.94 | 1.52 | 1.56 | 1.89 | 2.16 | 1.85 |
| Down Beta | 2.01 | 1.88 | 2.36 | 1.90 | 2.00 | 1.92 |
| Up Capture | 118% | 196% | 254% | 254% | 369% | 2963% |
| Bmk +ve Days | 11 | 24 | 40 | 67 | 140 | 429 |
| Stock +ve Days | 10 | 18 | 35 | 62 | 133 | 400 |
| Down Capture | 253% | 280% | 247% | 179% | 160% | 112% |
| Bmk -ve Days | 10 | 17 | 23 | 58 | 112 | 321 |
| Stock -ve Days | 11 | 23 | 28 | 63 | 119 | 350 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with AVGO | |
|---|---|---|---|---|
| AVGO | 42.1% | 47.2% | 0.89 | - |
| Sector ETF (XLK) | 38.6% | 24.7% | 1.27 | 70.4% |
| Equity (SPY) | 18.5% | 12.7% | 1.06 | 57.4% |
| Gold (GLD) | 17.6% | 28.1% | 0.57 | 15.2% |
| Commodities (DBC) | 35.2% | 19.1% | 1.45 | 1.8% |
| Real Estate (VNQ) | 11.6% | 13.9% | 0.55 | -9.3% |
| Bitcoin (BTCUSD) | -45.1% | 42.9% | -1.28 | 33.5% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with AVGO | |
|---|---|---|---|---|
| AVGO | 55.3% | 43.8% | 1.14 | - |
| Sector ETF (XLK) | 19.5% | 25.6% | 0.68 | 74.3% |
| Equity (SPY) | 12.6% | 17.1% | 0.57 | 64.0% |
| Gold (GLD) | 16.8% | 18.4% | 0.74 | 11.2% |
| Commodities (DBC) | 9.8% | 19.5% | 0.39 | 12.6% |
| Real Estate (VNQ) | 2.6% | 18.9% | 0.03 | 26.7% |
| Bitcoin (BTCUSD) | 15.8% | 53.4% | 0.47 | 24.8% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with AVGO | |
|---|---|---|---|---|
| AVGO | 41.5% | 39.6% | 1.00 | - |
| Sector ETF (XLK) | 24.4% | 24.8% | 0.89 | 73.5% |
| Equity (SPY) | 14.9% | 17.9% | 0.71 | 65.5% |
| Gold (GLD) | 11.2% | 16.1% | 0.57 | 9.0% |
| Commodities (DBC) | 7.4% | 17.9% | 0.33 | 20.1% |
| Real Estate (VNQ) | 4.9% | 20.7% | 0.20 | 36.4% |
| Bitcoin (BTCUSD) | 58.7% | 66.2% | 0.99 | 18.4% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 7/8/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 6/3/2026 | -12.6% | -22.4% | -21.9% |
| 3/4/2026 | 4.8% | 7.6% | -0.7% |
| 12/11/2025 | -11.4% | -18.8% | -12.6% |
| 9/4/2025 | 9.4% | 17.5% | 10.7% |
| 6/5/2025 | -5.0% | -1.5% | 7.2% |
| 3/6/2025 | 8.6% | 6.6% | -18.2% |
| 12/12/2024 | 24.4% | 20.8% | 26.5% |
| 9/5/2024 | -10.4% | 7.7% | 16.0% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 17 | 19 | 15 |
| # Negative | 7 | 5 | 9 |
| Median Positive | 3.1% | 6.2% | 10.5% |
| Median Negative | -7.0% | -10.3% | -6.4% |
| Max Positive | 24.4% | 20.8% | 26.5% |
| Max Negative | -12.6% | -22.4% | -21.9% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 6/3/2026 | -12.6% | -22.4% | -21.9% |
| 3/4/2026 | 4.8% | 7.6% | -0.7% |
| 12/11/2025 | -11.4% | -18.8% | -12.6% |
| 9/4/2025 | 9.4% | 17.5% | 10.7% |
| 6/5/2025 | -5.0% | -1.5% | 7.2% |
| 3/6/2025 | 8.6% | 6.6% | -18.2% |
| 12/12/2024 | 24.4% | 20.8% | 26.5% |
| 9/5/2024 | -10.4% | 7.7% | 16.0% |
| 6/12/2024 | 12.3% | 16.0% | 15.0% |
| 3/7/2024 | -7.0% | -10.3% | -4.6% |
| 12/7/2023 | 2.4% | 20.0% | 17.9% |
| 8/31/2023 | -5.5% | -7.1% | -9.0% |
| 6/1/2023 | 2.8% | 1.8% | 11.5% |
| 3/2/2023 | 5.7% | 4.0% | 7.9% |
| 12/8/2022 | 2.6% | 5.1% | 9.2% |
| 9/1/2022 | 1.7% | 6.2% | -6.4% |
| 5/26/2022 | 3.6% | 8.5% | -4.1% |
| 3/3/2022 | 3.0% | 1.6% | 9.1% |
| 12/9/2021 | 8.3% | 6.4% | 7.1% |
| 9/2/2021 | 1.2% | 1.3% | -2.5% |
| 6/3/2021 | 2.2% | 0.8% | 1.5% |
| 3/4/2021 | 1.5% | 2.3% | 11.0% |
| 12/10/2020 | -1.0% | 3.9% | 10.5% |
| 9/3/2020 | 3.1% | 2.2% | 4.9% |
| SUMMARY STATS | |||
| # Positive | 17 | 19 | 15 |
| # Negative | 7 | 5 | 9 |
| Median Positive | 3.1% | 6.2% | 10.5% |
| Median Negative | -7.0% | -10.3% | -6.4% |
| Max Positive | 24.4% | 20.8% | 26.5% |
| Max Negative | -12.6% | -22.4% | -21.9% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 04/30/2026 | 06/09/2026 | 10-Q |
| 01/31/2026 | 03/11/2026 | 10-Q |
| 10/31/2025 | 12/18/2025 | 10-K |
| 07/31/2025 | 09/10/2025 | 10-Q |
| 04/30/2025 | 06/11/2025 | 10-Q |
| 01/31/2025 | 03/12/2025 | 10-Q |
| 10/31/2024 | 12/20/2024 | 10-K |
| 07/31/2024 | 09/11/2024 | 10-Q |
| 04/30/2024 | 06/13/2024 | 10-Q |
| 01/31/2024 | 03/14/2024 | 10-Q |
| 10/31/2023 | 12/14/2023 | 10-K |
| 07/31/2023 | 09/06/2023 | 10-Q |
| 04/30/2023 | 06/07/2023 | 10-Q |
| 01/31/2023 | 03/08/2023 | 10-Q |
| 10/31/2022 | 12/16/2022 | 10-K |
| 07/31/2022 | 09/08/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 04/30/2026 | 06/09/2026 | 10-Q |
| 01/31/2026 | 03/11/2026 | 10-Q |
| 10/31/2025 | 12/18/2025 | 10-K |
| 07/31/2025 | 09/10/2025 | 10-Q |
| 04/30/2025 | 06/11/2025 | 10-Q |
| 01/31/2025 | 03/12/2025 | 10-Q |
| 10/31/2024 | 12/20/2024 | 10-K |
| 07/31/2024 | 09/11/2024 | 10-Q |
| 04/30/2024 | 06/13/2024 | 10-Q |
| 01/31/2024 | 03/14/2024 | 10-Q |
| 10/31/2023 | 12/14/2023 | 10-K |
| 07/31/2023 | 09/06/2023 | 10-Q |
| 04/30/2023 | 06/07/2023 | 10-Q |
| 01/31/2023 | 03/08/2023 | 10-Q |
| 10/31/2022 | 12/16/2022 | 10-K |
| 07/31/2022 | 09/08/2022 | 10-Q |
| 04/30/2022 | 06/09/2022 | 10-Q |
| 01/31/2022 | 03/10/2022 | 10-Q |
| 10/31/2021 | 12/17/2021 | 10-K |
| 07/31/2021 | 09/09/2021 | 10-Q |
| 04/30/2021 | 06/11/2021 | 10-Q |
| 01/31/2021 | 03/12/2021 | 10-Q |
| 10/31/2020 | 12/18/2020 | 10-K |
| 07/31/2020 | 09/11/2020 | 10-Q |
| 04/30/2020 | 06/12/2020 | 10-Q |
| 01/31/2020 | 03/13/2020 | 10-Q |
| 10/31/2019 | 12/20/2019 | 10-K |
| 07/31/2019 | 09/13/2019 | 10-Q |
Recent Forward Guidance
Updated 7/8/2026Latest: Q2 2026 Earnings Reported 6/3/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q3 2026 Revenue | 29.40 Bil | 33.6% | Higher New | Actual: 22.00 Bil for Q2 2026 | |||
| Q3 2026 Non-GAAP Operating Income | 0.67 | ||||||
| Q3 2026 Adjusted EBITDA | 0.68 | 0.0% | Same New | Actual: 0.68 for Q2 2026 | |||
| Q3 2026 AI Semiconductor Revenue | 16.00 Bil | 49.5% | Higher New | Actual: 10.70 Bil for Q2 2026 | |||
Prior: Q1 2026 Earnings Reported 3/4/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q2 2026 Revenue | 22.00 Bil | 15.2% | Higher New | Guidance: 19.10 Bil for Q1 2026 | |||
| Q2 2026 Adjusted EBITDA Margin | 68.0% | 1.0% | Higher New | Guidance: 67.0% for Q1 2026 | |||
| Q2 2026 AI Semiconductor Revenue | 10.70 Bil | 30.5% | Higher New | Guidance: 8.20 Bil for Q1 2026 | |||
Q4 2025 Earnings Reported 12/11/2025
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q1 2026 Revenue | 19.10 Bil | 9.8% | Higher New | Guidance: 17.40 Bil for Q4 2025 | |||
| Q1 2026 Adjusted EBITDA | 0.67 | 0 | Same New | Guidance: 0.67 for Q4 2025 | |||
| Q1 2026 AI Semiconductor Revenue | 8.20 Bil | 32.3% | Higher New | Guidance: 6.20 Bil for Q4 2025 | |||
| 2026 Quarterly Dividend | 0.65 | 10.0% | Raised | Guidance: 0.59 for 2025 | |||
| 2026 Annual Dividend | 2.6 | Higher New | |||||
Insider Activity
Updated 7/14/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Brazeal, Mark David | Chief Legal & Corp Affairs Ofc | Direct | Sell | 7142026 | 401.33 | 25,000 | 10,033,225 | 78,254,740 | Form |
| 2 | Delly, Gayla J | Direct | Sell | 7102026 | 385.38 | 1,890 | 728,368 | 12,072,414 | Form | |
| 3 | Brazeal, Mark David | Chief Legal & Corp Affairs Ofc | Direct | Sell | 7102026 | 379.19 | 25,000 | 9,479,700 | 83,417,189 | Form |
| 4 | Page, Justine | Direct | Sell | 7012026 | 373.86 | 1,602 | 598,916 | 6,514,797 | Form | |
| 5 | Brazeal, Mark David | Chief Legal & Corp Affairs Ofc | Direct | Sell | 6292026 | 387.00 | 25,000 | 9,675,000 | 94,810,743 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Brazeal, Mark David | Chief Legal & Corp Affairs Ofc | Direct | Sell | 7142026 | 401.33 | 25,000 | 10,033,225 | 78,254,740 | Form |
| 2 | Delly, Gayla J | Direct | Sell | 7102026 | 385.38 | 1,890 | 728,368 | 12,072,414 | Form | |
| 3 | Brazeal, Mark David | Chief Legal & Corp Affairs Ofc | Direct | Sell | 7102026 | 379.19 | 25,000 | 9,479,700 | 83,417,189 | Form |
| 4 | Page, Justine | Direct | Sell | 7012026 | 373.86 | 1,602 | 598,916 | 6,514,797 | Form | |
| 5 | Brazeal, Mark David | Chief Legal & Corp Affairs Ofc | Direct | Sell | 6292026 | 387.00 | 25,000 | 9,675,000 | 94,810,743 | Form |
| 6 | Samueli, Henry | See Footnote | Sell | 6262026 | 382.13 | 654,241 | 250,005,852 | 11,558,680,604 | Form | |
| 7 | Brazeal, Mark David | Chief Legal & Corp Affairs Ofc | Direct | Sell | 6182026 | 394.91 | 4,825 | 1,905,454 | 106,622,095 | Form |
| 8 | Brazeal, Mark David | Chief Legal & Corp Affairs Ofc | Direct | Sell | 6182026 | 381.87 | 3,327 | 1,270,465 | 104,941,868 | Form |
| 9 | You, Harry L | Direct | Buy | 6152026 | 373.57 | 1,000 | 373,570 | 14,369,744 | Form | |
| 10 | Velaga, S. Ram | President, ISG | Direct | Sell | 4142026 | 370.52 | 8,000 | 2,964,178 | 21,465,098 | Form |
| 11 | Delly, Gayla J | Direct | Sell | 4132026 | 358.31 | 1,000 | 358,310 | 11,592,045 | Form | |
| 12 | Velaga, S. Ram | President, ISG | Direct | Sell | 4102026 | 352.12 | 17,260 | 6,077,564 | 23,215,870 | Form |
| 13 | Velaga, S. Ram | President, ISG | Direct | Sell | 4102026 | 352.02 | 12,955 | 4,560,449 | 29,285,439 | Form |
| 14 | Page, Justine | Direct | Sell | 4102026 | 353.00 | 2,018 | 712,354 | 6,411,894 | Form | |
| 15 | Kawwas, Charlie B | President, SSG | Trust | Sell | 4102026 | 345.23 | 10,000 | 3,452,270 | 271,757,171 | Form |
| 16 | Samueli, Henry | See Footnote | Sell | 3272026 | 319.71 | 781,967 | 250,000,302 | 9,878,241,753 | Form | |
| 17 | Velaga, S. Ram | President, ISG | Direct | Sell | 3182026 | 321.60 | 38,841 | 12,491,272 | 30,920,891 | Form |
| 18 | Spears, Kirsten M | CFO & Chief Accounting Officer | Direct | Sell | 3182026 | 321.60 | 36,292 | 11,671,572 | 105,408,201 | Form |
| 19 | Kawwas, Charlie B | President, SSG | Direct | Sell | 3182026 | 321.61 | 39,116 | 12,579,953 | 24,000,194 | Form |
| 20 | Brazeal, Mark David | Chief Legal & Corp Affairs Ofc | Direct | Sell | 3182026 | 321.60 | 50,488 | 16,236,990 | 89,450,415 | Form |
| 21 | Velaga, S. Ram | President, ISG | Direct | Sell | 3182026 | 326.10 | 25,538 | 8,327,831 | 44,019,001 | Form |
| 22 | Spears, Kirsten M | CFO & Chief Accounting Officer | Direct | Sell | 3182026 | 326.09 | 23,862 | 7,781,144 | 118,713,477 | Form |
| 23 | Kawwas, Charlie B | President, SSG | Direct | Sell | 3182026 | 326.10 | 25,718 | 8,386,722 | 37,091,628 | Form |
| 24 | Brazeal, Mark David | Chief Legal & Corp Affairs Ofc | Direct | Sell | 3182026 | 326.10 | 33,194 | 10,824,704 | 107,167,309 | Form |
| 25 | Spears, Kirsten M | CFO & Chief Accounting Officer | Direct | Sell | 1052026 | 347.82 | 30,000 | 10,434,603 | 96,428,599 | Form |
| 26 | Brazeal, Mark David | Chief Legal & Corp Affairs Ofc | Direct | Sell | 12302025 | 352.07 | 25,921 | 9,126,058 | 84,699,017 | Form |
| 27 | Tan, Hock E | President and CEO | Trust | Sell | 12292025 | 345.65 | 100,000 | 34,564,807 | 171,316,320 | Form |
| 28 | You, Harry L | Direct | Buy | 12222025 | 325.13 | 1,000 | 325,129 | 11,900,372 | Form | |
| 29 | Tan, Hock E | President and CEO | Trust | Sell | 12222025 | 326.02 | 130,000 | 42,382,600 | 194,189,901 | Form |
| 30 | Brazeal, Mark David | Chief Legal & Corp Affairs Ofc | Direct | Sell | 12192025 | 327.65 | 38,281 | 12,542,615 | 87,315,682 | Form |
| 31 | Kawwas, Charlie B | President, Semi Solutions Grp | Direct | Sell | 12182025 | 327.80 | 1,928 | 631,999 | 7,730,191 | Form |
| 32 | Spears, Kirsten M | CFO & Chief Accounting Officer | Direct | Sell | 12182025 | 327.79 | 3,714 | 1,217,397 | 100,707,934 | Form |
| 33 | Kawwas, Charlie B | President, Semi Solutions Grp | Direct | Sell | 12182025 | 340.98 | 1,235 | 421,113 | 8,698,454 | Form |
| 34 | Spears, Kirsten M | CFO & Chief Accounting Officer | Direct | Sell | 12182025 | 340.92 | 2,379 | 811,043 | 106,008,711 | Form |
| 35 | Brazeal, Mark David | Chief Legal & Corp Affairs Ofc | Direct | Sell | 12182025 | 340.91 | 24,527 | 8,361,500 | 103,900,844 | Form |
| 36 | Page, Justine | Direct | Sell | 12172025 | 361.89 | 800 | 289,512 | 7,448,420 | Form | |
| 37 | Samueli, Henry | See Footnote | Sell | 12092025 | 400.53 | 320,316 | 128,297,553 | 14,950,560,542 | Form | |
| 38 | Page, Justine | Direct | Sell | 11182025 | 331.14 | 800 | 264,912 | 7,080,435 | Form | |
| 39 | Page, Justine | Direct | Sell | 10162025 | 350.15 | 800 | 280,120 | 7,767,027 | Form | |
| 40 | Samueli, Henry | See Footnote | Sell | 9262025 | 337.91 | 368,797 | 124,620,222 | 12,746,824,276 | Form | |
| 41 | Tan, Hock E | President and CEO | Trust | Sell | 9252025 | 339.58 | 100,000 | 33,958,393 | 246,415,006 | Form |
| 42 | Brazeal, Mark David | Chief Legal & Corp Affairs Ofc | Direct | Sell | 9182025 | 347.61 | 16,558 | 5,755,739 | 114,468,921 | Form |
| 43 | Kawwas, Charlie B | President, Semi Solutions Grp | Direct | Sell | 9182025 | 347.82 | 3,893 | 1,354,048 | 8,798,011 | Form |
| 44 | Spears, Kirsten M | CFO & Chief Accounting Officer | Direct | Sell | 9182025 | 347.66 | 7,498 | 2,606,782 | 108,933,449 | Form |
| 45 | Brazeal, Mark David | Chief Legal & Corp Affairs Ofc | Direct | Sell | 9182025 | 360.38 | 10,646 | 3,836,648 | 124,642,405 | Form |
| 46 | Kawwas, Charlie B | President, Semi Solutions Grp | Direct | Sell | 9182025 | 360.39 | 2,504 | 902,411 | 10,519,001 | Form |
| 47 | Spears, Kirsten M | CFO & Chief Accounting Officer | Direct | Sell | 9182025 | 360.38 | 4,821 | 1,737,399 | 115,620,430 | Form |
| 48 | Page, Justine | Direct | Sell | 9172025 | 360.00 | 800 | 288,000 | 8,273,520 | Form | |
| 49 | Tan, Hock E | President and CEO | Trust | Sell | 9122025 | 336.67 | 148,154 | 49,879,007 | 278,088,747 | Form |
| 50 | You, Harry L | Direct | Buy | 9102025 | 363.38 | 500 | 181,688 | 12,936,877 | Form | |
| 51 | You, Harry L | Direct | Buy | 9102025 | 339.38 | 1,000 | 339,385 | 11,913,092 | Form | |
| 52 | You, Harry L | Direct | Buy | 9102025 | 344.78 | 2,050 | 706,798 | 11,757,667 | Form | |
| 53 | Page, Justine | Direct | Sell | 8152025 | 307.46 | 800 | 245,968 | 7,312,014 | Form | |
| 54 | Page, Justine | Direct | Sell | 7162025 | 274.30 | 800 | 219,440 | 6,742,843 | Form | |
| 55 | Tan, Hock E | President and CEO | Direct | Sell | 6302025 | 268.29 | 40,000 | 10,731,720 | 129,541,519 | Form |
| 56 | Delly, Gayla J | Direct | Sell | 6302025 | 265.13 | 3,000 | 795,390 | 8,842,616 | Form |
Investor Activity (13F)
Updated Jul 24, 2026Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| Ask Capital Management, LLC | $524.6 Mil | 98.5% | 3 | Hold | 13F |
| Inspire Investing, LLC | $69.0 Mil | 13.9% | 313 | New | 13F |
| Cincinnati Specialty Underwriters Insurance CO | $56.4 Mil | 13.7% | 46 | TRIM -53.2% | 13F |
| Proem Advisors LLC | $40.2 Mil | 13.3% | 29 | ADD +76.9% | 13F |
| M & L Capital Management Ltd | $53.7 Mil | 13.2% | 19 | ADD +31.8% | 13F |
| FUKOKU MUTUAL LIFE INSURANCE Co | $195.0 Mil | 12.8% | 235 | Hold | 13F |
| Carmel Capital Management L.L.C. | $43.8 Mil | 12.5% | 25 | Hold | 13F |
| Broad Peak Investment Advisers Pte Ltd | $57.3 Mil | 11.6% | 23 | New | 13F |
| Glass Wealth Management Co LLC | $28.5 Mil | 11.0% | 67 | Hold | 13F |
| Hillman Co | $27.1 Mil | 10.5% | 14 | Hold | 13F |
| UNICOM Systems, Inc. | $92.9 Mil | 9.5% | 32 | Hold | 13F |
| Light Street Capital Management, LLC | $46.4 Mil | 9.3% | 23 | Hold | 13F |
| Boulder Wealth Advisors, LLC | $22.9 Mil | 9.1% | 32 | New | 13F |
| DSM Capital Partners LLC | $499.9 Mil | 8.8% | 44 | Hold | 13F |
| Randolph Co Inc | $91.9 Mil | 8.8% | 43 | Hold | 13F |
| PARUS FINANCE (UK) Ltd | $28.6 Mil | 8.6% | 37 | Hold | 13F |
| Oaktop Capital Management Ii, L.P. | $112.3 Mil | 8.4% | 14 | Hold | 13F |
| Crake Asset Management LLP | $232.7 Mil | 8.1% | 20 | New | 13F |
| Harvard Management Co Inc | $146.7 Mil | 8.1% | 17 | New | 13F |
| Scge Management, L.P. | $245.3 Mil | 7.4% | 21 | New | 13F |
| Michael & Susan Dell Foundation | $197.6 Mil | 6.9% | 8 | Hold | 13F |
| FFG Partners, LLC | $16.5 Mil | 6.5% | 35 | New | 13F |
| Blue Whale Capital LLP | $136.0 Mil | 6.5% | 26 | ADD +23.5% | 13F |
| Kinetic Partners Management, LP | $111.7 Mil | 6.3% | 49 | New | 13F |
| Hamilton Capital Partners, LLC | $19.7 Mil | 6.1% | 30 | New | 13F |
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| Scge Management, L.P. | $245.3 Mil | 7.4% | 21 | New | 13F |
| Crake Asset Management LLP | $232.7 Mil | 8.1% | 20 | New | 13F |
| Harvard Management Co Inc | $146.7 Mil | 8.1% | 17 | New | 13F |
| Kinetic Partners Management, LP | $111.7 Mil | 6.3% | 49 | New | 13F |
| Inspire Investing, LLC | $69.0 Mil | 13.9% | 313 | New | 13F |
| Broad Peak Investment Advisers Pte Ltd | $57.3 Mil | 11.6% | 23 | New | 13F |
| Retail Employees Superannuation Pty Ltd as trustee for Retail Employees Superannuation Trust | $40.3 Mil | 6.0% | 28 | New | 13F |
| Boulder Wealth Advisors, LLC | $22.9 Mil | 9.1% | 32 | New | 13F |
| Hamilton Capital Partners, LLC | $19.7 Mil | 6.1% | 30 | New | 13F |
| FFG Partners, LLC | $16.5 Mil | 6.5% | 35 | New | 13F |
| Proem Advisors LLC | $40.2 Mil | 13.3% | 29 | ADD +76.9% | 13F |
| M & L Capital Management Ltd | $53.7 Mil | 13.2% | 19 | ADD +31.8% | 13F |
| Blue Whale Capital LLP | $136.0 Mil | 6.5% | 26 | ADD +23.5% | 13F |
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | As Of | Filing |
|---|---|---|---|---|---|---|
| Trivest Advisors Ltd | $252.7 Mil | 11.5% | 30 | Exited | Dec 31, 2025 | 13F |
| SurgoCap Partners LP | $231.9 Mil | 6.4% | 17 | Exited | Dec 31, 2025 | 13F |
| RK Capital Management, LLC/FL | $98.6 Mil | 6.1% | 20 | Exited | Dec 31, 2025 | 13F |
| Oxbow Capital Management (HK) Ltd | $86.1 Mil | 23.9% | 8 | Exited | Dec 31, 2025 | 13F |
| Gladstone Capital Management LLP | $73.7 Mil | 7.6% | 28 | Exited | Dec 31, 2025 | 13F |
| Tree Line Advisors (Hong Kong) Ltd. | $55.4 Mil | 12.6% | 6 | Exited | Dec 31, 2025 | 13F |
| Cypress Funds LLC | $40.1 Mil | 6.6% | 14 | Exited | Dec 31, 2025 | 13F |
| Estuary Capital Management LP | $36.3 Mil | 6.4% | 23 | Exited | Dec 31, 2025 | 13F |
| ADAPT Investment Managers SA | $35.5 Mil | 7.2% | 28 | Exited | Dec 31, 2025 | 13F |
| Aragon Global Management, LP | $26.9 Mil | 8.2% | 32 | Exited | Dec 31, 2025 | 13F |
| Cincinnati Specialty Underwriters Insurance CO | $56.4 Mil | 13.7% | 46 | TRIM -53.2% | Mar 31, 2026 | 13F |
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| Ask Capital Management, LLC | $524.6 Mil | 98.5% | 3 | Hold | 13F |
| DSM Capital Partners LLC | $499.9 Mil | 8.8% | 44 | Hold | 13F |
| Scge Management, L.P. | $245.3 Mil | 7.4% | 21 | New | 13F |
| Crake Asset Management LLP | $232.7 Mil | 8.1% | 20 | New | 13F |
| Michael & Susan Dell Foundation | $197.6 Mil | 6.9% | 8 | Hold | 13F |
| FUKOKU MUTUAL LIFE INSURANCE Co | $195.0 Mil | 12.8% | 235 | Hold | 13F |
| Harvard Management Co Inc | $146.7 Mil | 8.1% | 17 | New | 13F |
| Blue Whale Capital LLP | $136.0 Mil | 6.5% | 26 | ADD +23.5% | 13F |
| Oaktop Capital Management Ii, L.P. | $112.3 Mil | 8.4% | 14 | Hold | 13F |
| Kinetic Partners Management, LP | $111.7 Mil | 6.3% | 49 | New | 13F |
| UNICOM Systems, Inc. | $92.9 Mil | 9.5% | 32 | Hold | 13F |
| Randolph Co Inc | $91.9 Mil | 8.8% | 43 | Hold | 13F |
| Inspire Investing, LLC | $69.0 Mil | 13.9% | 313 | New | 13F |
| Broad Peak Investment Advisers Pte Ltd | $57.3 Mil | 11.6% | 23 | New | 13F |
| Cincinnati Specialty Underwriters Insurance CO | $56.4 Mil | 13.7% | 46 | TRIM -53.2% | 13F |
| M & L Capital Management Ltd | $53.7 Mil | 13.2% | 19 | ADD +31.8% | 13F |
| Light Street Capital Management, LLC | $46.4 Mil | 9.3% | 23 | Hold | 13F |
| Carmel Capital Management L.L.C. | $43.8 Mil | 12.5% | 25 | Hold | 13F |
| Retail Employees Superannuation Pty Ltd as trustee for Retail Employees Superannuation Trust | $40.3 Mil | 6.0% | 28 | New | 13F |
| Proem Advisors LLC | $40.2 Mil | 13.3% | 29 | ADD +76.9% | 13F |
| PARUS FINANCE (UK) Ltd | $28.6 Mil | 8.6% | 37 | Hold | 13F |
| Glass Wealth Management Co LLC | $28.5 Mil | 11.0% | 67 | Hold | 13F |
| Hillman Co | $27.1 Mil | 10.5% | 14 | Hold | 13F |
| Boulder Wealth Advisors, LLC | $22.9 Mil | 9.1% | 32 | New | 13F |
| Hamilton Capital Partners, LLC | $19.7 Mil | 6.1% | 30 | New | 13F |
AVGO Trade Sentinel
High Conviction
CONVICTION RATIONALE
Conviction is high due to exceptional visibility into future growth. AI semiconductor bookings of over $30 billion in Q2 far outpace the $10.8 billion shipped, signaling a deep backlog. Management has provided a clear revenue path, forecasting $56 billion in AI revenue for fiscal 2026 and over $100 billion in 2027, supported by multi-year customer agreements.
STOCK ARCHETYPE
Vertically-integrated component supplier with a recurring software base(Number of AI chips/systems sold * ASP) + (Number of software subscriptions * ARR) Operating Leverage. As high-margin AI revenue scales massively, operating expenses grow much slower, leading to significant operating margin expansion and profit growth.
INVESTMENT THESIS
Evidence suggests a durable, multi-year ramp is underway, driven by deep customer partnerships and a massive order backlog.
- AI semiconductor revenue growth accelerated to 143% year-over-year in Q2 2026.
- Q2 AI semiconductor bookings were over $30 billion against $10.8 billion shipped.
- Company forecasts AI semiconductor revenue of $56 billion for fiscal year 2026.
- Management reiterates guidance for AI revenue to exceed $100 billion in fiscal 2027.
PRIMARY RISK
The company's growth is highly dependent on a few hyperscale customers, with the top five accounting for approximately 45% of net revenue. A shift in strategy or technology by a single key customer could materially impact results.
- Top five end customers represent approximately 45% of net revenue.
- Company filings cite loss of a significant customer as a material risk.
- Competitors include the internal resources of large integrated OEMs.
- Primary competitor NVIDIA has 3.4 times Broadcom's revenue and larger R&D spend.
| KPI | Status | Rationale |
|---|---|---|
| AI Semiconductor Revenue Growth | $10.8 billion in Q2 FY2026, representing 143% year-over-year growth - Accelerating | The year-over-year growth rate for AI semiconductor revenue has shown significant and consistent acceleration over the last three quarters, moving from 74% to 106% and most recently to 143%. Management commentary points to "insatiable" demand for its custom accelerators (XPUs) and networking products. |
| Infrastructure Software Revenue Growth | $7.2 billion in Q2 FY2026, representing 9% year-over-year growth - Turning around | The growth trajectory for Infrastructure Software has been volatile, slowing significantly to 1% in Q1 FY26 before re-accelerating to 9% in the latest quarter. Management attributes the recent strength to strong demand for its VMware Cloud Foundation (VCF) product amid robust global server demand. |
| AI Semiconductor Bookings | Over $30 billion (Q2 FY2026) | A leading indicator of future AI revenue, demonstrating the magnitude by which demand is outstripping current supply. |
| Infrastructure Software Annual Recurring Revenue (ARR) Growth | 17% year-over-year (Q2 FY2026) | Indicates the health and growth trajectory of the recurring revenue base in the software segment. |
AI Bookings Boom vs. Peak Cycle Fears
BULL VIEW
The nearly 3-to-1 book-to-bill ratio and multi-year guidance to over $100 billion in AI revenue by 2027 confirm a durable, structural growth cycle, not a short-term peak.
CORE TENSION
Can Q2 AI bookings over $30 billion and a $56 billion FY26 forecast overcome fears of a cyclical peak, which drove the recent stock decline?
PREVAILING SENTIMENT
The latest forward-looking data, including massive bookings and multi-year revenue targets, provides a more concrete signal of durability than the market's recent sentiment-driven price action.
BEAR VIEW
The market's -13% post-earnings reaction signals that growth is failing to exceed sky-high expectations, and concentrated hyperscaler demand could prove cyclical and unreliable.
| Timeline | Event & Metric To Watch |
|---|---|
8/20/2026 | Peer-Driven Sentiment Shift Watch: Marvell's commentary on data center, AI, and custom silicon demand from shared hyperscale customers. |
9/2/2026 | AI Execution Risk Under High Expectations Watch: Q4 guidance for AI revenue and commentary on the sustainability of the AI ramp and margins. |
10/19/2026 | Texas Instruments Earnings Watch: Peer Texas Instruments (TXN) is scheduled to report earnings. |
11/2/2026 | AMD Earnings Report Watch: Peer Advanced Micro Devices (AMD) is scheduled to report earnings. |
December 31, 2026 | Share Repurchase Authorization Watch: The company's authorized stock repurchase program of $10 billion runs through this date. |
No set date | Heightened Market Uncertainty Watch: Any negative catalyst could trigger an outsized price move given the high level of priced-in volatility. |
| Date | Event | Stock Impact |
|---|---|---|
2026-07-06 | Apple Chip Supply Deal Extended Details: On 2026-07-06, news emerged that Broadcom extended its chip partnership with Apple Inc through 2031. | +2.9% $360.45 -> $370.78 |
2026-06-03 | Q2 Earnings Report and Outlook Details: Company reported record Q2 revenue of $22.2B, up 48% YoY, driven by AI. However, news reports characterized the outlook as disappointing relative to high expectations. | -13.0% $480.81 -> $418.25 |
2026-06-01 | Broadband Edge AI Portfolio Unveiled Details: Broadcom showcased its broadband Edge AI portfolio, including a 50G PON gateway SoC and a comprehensive Wi-Fi 8 product family. | +7.8% $446.06 -> $480.81 |
2026-05-19 | LSEG Partnership Renewal Details: LSEG and Broadcom announced a renewal of their technology partnership, with a new five-year agreement centered on VMware Cloud Foundation. | -0.7% $420.05 -> $417.10 |
2026-03-04 | Q1 Earnings Report and Guidance Details: Company reported record Q1 revenue of $19.3B, up 29% YoY. AI semiconductor revenue grew 106% YoY. The company announced a sixth XPU customer, OpenAI. | +6.0% $312.69 -> $331.55 |
Position Sizing
2% - 4%
REDUCED POSITION
Sizing is volatility-based: AVGO trades at roughly 52% annualized options-implied volatility versus about 15% for the S&P 500 (3.5x the market), around the 96th percentile of its own trailing year. A 2% - 4% position keeps a single-name swing of that size within a diversified portfolio's risk budget.
Diversification Alternatives
NVDA - NVIDIA
Pure-Play AI LeaderNVIDIA offers broader exposure to the AI accelerator market with a merchant silicon model, superior margins (64% operating margin vs. 44.1%), and greater R&D scale.
MRVL - Marvell Technology
Diversified AI ExposureMarvell provides exposure to the custom AI silicon and networking markets, serving a similar hyperscale customer base but with a different product portfolio and risk profile.
A premier arms dealer for the AI revolution, pairing a dominant custom silicon franchise with a sticky, high-margin enterprise software business.
Broadcom is a two-engine business capitalizing on major technology trends. Its semiconductor segment is experiencing explosive growth by providing the critical, custom-designed 'picks and shovels'—XPUs and networking hardware—for the AI data center buildout to a select group of hyperscalers. This is complemented by a highly profitable infrastructure software business, anchored by VMware, which generates stable, recurring revenue from enterprises managing complex private clouds. The core strategy is technology leadership and scaled execution, fueled by both organic R&D and large strategic acquisitions.
Announcements of new multi-gigawatt XPU partnerships, continued acceleration in AI networking revenue, and stable to growing ARR in the software segment.
A significant slowdown in AI-related capital expenditures from hyperscalers, the loss of a key XPU customer to a competitor or an in-house solution, or a material decline in software ARR.
Quarterly fluctuations in the non-AI semiconductor business, which is subject to cyclical trends separate from the main AI growth driver.
Repricing Catalyst
Continued massive upward revisions to AI revenue guidance, driven by a bookings and backlog pipeline that far exceeds current production capacity.
Semiconductor solutions
$41.2B TTM (60% of Total)What It Is
Sells a broad portfolio of semiconductor products, including custom AI accelerators (XPUs), Ethernet switches, routers, RF devices, and Wi-Fi/Bluetooth chips to hyperscalers, AI frontier model companies, original equipment manufacturers (OEMs), and system integrators.
Who Pays & How
A concentrated group of hyperscalers and AI labs (including Google, Anthropic, and OpenAI) pay for custom-designed, high-performance silicon to power the massive compute and networking requirements of their AI data centers, choosing Broadcom for its technology leadership and ability to deliver at scale.
Competition
Infrastructure software
$27.1B TTM (40% of Total)What It Is
Sells a portfolio of software including Private Cloud (VMware Cloud Foundation), Mainframe, Cybersecurity, and Enterprise solutions to many of the world's largest companies, including most of the Fortune 500, and government agencies.
Who Pays & How
Large enterprises (like LSEG) and government agencies pay to modernize, optimize, and secure their complex, mission-critical private and hybrid cloud IT environments, choosing Broadcom for its integrated, enterprise-grade solutions.
Competition
Broadcom — Investor Video Playlist








Industry Resources
| Information Technology Resources |
| TechCrunch |
| Wired |
| CIO |
| MIT Technology Review |
| Gartner Insights |
| Ars Technica |
| Semiconductors Resources |
| EE Times |
| Semiconductor Engineering |
| Semiconductor Digest |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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