AVGO
Broadcom Inc.
$392.13
▼ 4.7%Updated Today 6:01 PM ET
▲ Up 63.7% over the last 12 months
Market Cap
$1.96T
P/E
66.75x
Forward P/E (est.)
47.68x
ROE
36.4%
Revenue Growth
32.3%
EPS Growth
125.8%
Profit Margin
38.9%
FCF Yield
11.3%
Debt / Equity
0.8x
ROIC
22.0%
Interest Coverage
6.45x
Current Ratio
2.24x
Dividend Yield
0.7%
Implied Growth (rev. DCF)
7.5%
Rating Score
79/100
Institutional-style technical read — sample, educational only
Sideways — price ($392.13) sits between its 50-day ($411.67) and 200-day ($359.95) averages.
Setup type
Range / mean-reversion
Holding time
1–6 weeks
Risk level
High
Risk / reward
1 : 2.6
Trade levels
Entry zone
$370.33 – $392.13
Stop loss
$357.36
Target 1
$444.01
Target 2
$482.92
Target 3
$521.83
Position sizing: Starter position only; risk ≤ 0.5% of capital and respect the wider stop.
Technical analysis
RSI(14) is soft (43); the MACD histogram is negative (downward momentum). Sideways — price ($392.13) sits between its 50-day ($411.67) and 200-day ($359.95) averages. ATR(14) is $25.94 (~6.6% of price), which sets the stop distance. Recent support sits near $370.33 and resistance near $495.00; the 52-week range is $244.17–$495.00.
Fundamental analysis
Revenue is growing at 32.3%, net margin near 38.9%, ROE roughly 36.4%; shares trade at 67x earnings. Quality score: 79/100.
Options flow
Live options-flow data needs a paid feed, so it isn't shown. For realized volatility, ATR of $25.94 (~6.6%/day) is the range to size stops and any option strikes around.
Volume analysis
The latest session traded 1.3× the 20-day average volume — roughly in line with normal activity.
Catalysts
The next quarterly earnings report is the main near-term catalyst. Technically, watch for a break and hold above $495.00 or a loss of $370.33.
Bullish scenario
Custom AI silicon and networking position it as a key AI beneficiary.
Bearish scenario
Acquisition-driven model carries meaningful leverage.
Invalidation
A daily close below $357.36 invalidates this setup read.
Probability-based scenario using sample data — not a recommendation or a guarantee of profit. Prioritize capital preservation, use stops, and size positions for risk. Past performance does not predict future results.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what AVGO's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. AVGO trades near $392.13, around its 50-day average ($411.67) and 200-day average ($359.95). Price tangled in its moving averages means there is no clear trend — the stock is ranging.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 43 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. AVGO's is $25.94 (~6.6% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month AVGO found buyers near $370.33 (support) and sellers near $495.00 (resistance); its 52-week range is $244.17–$495.00. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 1.3× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
Broadcom blends a high-margin custom-silicon and networking franchise with a large, sticky infrastructure-software business after the VMware acquisition. Custom AI accelerators for hyperscalers have become a major new growth driver alongside reliable free cash flow.
4Y CAGR
23.5%
Revenue grew from $27.45B in 2021 to $63.89B in 2025, a 23.5% CAGR. The most recent year grew about 32.3% year over year, a healthy pace pointing to durable demand.
Gross Margin
67.8%
Operating Margin
39.9%
Net Margin
—
ROE
36.4%
Gross margin runs near 68.3% with operating margin around 43.4% and net margin near 38.9%. Return on equity of roughly 36.4% indicates strong capital efficiency, and the margin profile has trended high and stable over the period shown.
Total Debt
$64.91B
Net Debt
$45.28B
Net Debt / EBITDA
1.78x
Debt / Equity
0.8x
Interest-bearing debt is about 6.0% of market capitalization and the debt-to-equity ratio is roughly 0.80x. Leverage is low, leaving the balance sheet well within comfortable limits.
Operating CF
$27.54B
Free Cash Flow
$26.91B
FCF Margin
42.1%
Operating cash flow comfortably exceeds reported net income, and free cash flow yield is around 11.3%. Cash generation is robust and supports buybacks, dividends, and reinvestment.
P/E
66.75x
P/S
28.05x
P/B
23x
EV / EBITDA
35x
Shares trade at roughly 67x trailing earnings (30x forward), 28.1x sales, and 35x EV/EBITDA. That is a premium multiple that prices in continued high growth — execution risk is elevated. Our internal rating is Strong.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.
How AVGO stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.
In the Information Technology sector (72 S&P 500 companies), AVGO ranks #7 of 72 by our overall rating. It trades at a premium versus the sector on earnings (66.8x P/E vs. 35.6x median) with a higher return on equity (36.4% vs. 25.6%) and faster revenue growth (32.3% vs. 17.4%).
P/E vs sector
66.8x
median 35.6x
ROE vs sector
36.4%
median 25.6%
Growth vs sector
32.3%
median 17.4%
Sector rank
#7
of 72 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 72 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$215.26 – $360.55
vs. $392.13 today · expected CAGR -11% – -2%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $84.33B | $111.32B | $146.94B | $193.96B | $256.02B |
| Net income | $8.43B | $11.13B | $14.69B | $19.40B | $25.60B |
| EPS | $1.77 | $2.34 | $3.09 | $4.08 | $5.38 |
| Share price (low) | $70.90 | $93.59 | $123.54 | $163.07 | $215.26 |
| Share price (high) | $118.76 | $156.76 | $206.93 | $273.15 | $360.55 |
| CAGR (low–high) | -82% / -70% | -51% / -37% | -32% / -19% | -20% / -9% | -11% / -2% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
- Custom AI silicon and networking position it as a key AI beneficiary.
- VMware adds recurring, high-margin software revenue.
- Strong free cash flow funds dividends and deleveraging.
- Acquisition-driven model carries meaningful leverage.
- Customer concentration in custom-silicon programs.
- Rich valuation after a strong run.
- Integration and leverage risk from large M&A.
- AI-spending cyclicality.
- Customer concentration.
Broadcom is a diversified AI-and-software compounder with strong cash generation, suited to investors comfortable with an acquisitive, leveraged model.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.