Overview
Broadcom is a large US technology company spanning semiconductors and infrastructure software. Its products serve data-centre networking and storage, wireless connectivity and enterprise software markets, tying its prospects to both continued demand for advanced computing infrastructure and the execution of a diverse software portfolio. At US$361.54, the shares are within their 52-week range of US$288.95 to US$493.28. The figures point to a high-growth, highly profitable business, but one whose valuation and share-price volatility merit attention.
Broadcom combines semiconductor products with infrastructure software, giving it exposure to both the hardware that connects and powers data centres and the software used to manage enterprise and mainframe systems. Its chip portfolio spans networking, wireless connectivity, servers and storage, broadband and industrial applications; its software includes private-cloud platforms, cybersecurity and mainframe tools. The business has substantial scale, with a market capitalisation of US$1.7 trillion and trailing 12-month revenue of US$89.1 billion. Revenue growth is displayed at 85.50% and profit margin at 42.94%, though these figures alone do not explain the contribution of each business segment.
Key facts
- Ticker
- AVGO
- Exchange
- US
- ISIN
- US11135F1012
- Sector
- Technology
- Industry
- Semiconductors
- Country
- USA
- Currency
- USD
- Price
- $361.54
- Previous close
- $360.14
- Day change
- +$1.40 (+0.39%)
- Market cap
- 1.7T
- 52W low
- $288.95
- 52W high
- $493.28
Price and trend
Last price: $361.54
- Price
- $361.54
- 52W range
- $288.95 – $493.28
- 50-day SMA
- $372.60
- 200-day SMA
- $368.09
- Price vs 50D SMA
- -2.97%
- Price vs 200D SMA
- -1.78%
Valuation
- P/E
- 45.99
- PEG
- 0.36
- EPS
- 7.83
- Dividend yield
- 0.69%
- Beta
- 1.48
Broadcom’s price-to-earnings ratio of 45.99 points to a premium earnings multiple, so the valuation depends on the business sustaining strong earnings and growth. The supplied PEG ratio is 0.36, but it should be considered alongside the P/E ratio rather than treated as a standalone valuation conclusion. The company’s 42.94% profit margin and 85.50% revenue growth provide important context, while the modest 0.69% dividend yield is unlikely to be the main attraction for income-focused investors.
Top Australian Brokers
- Pepperstone - Top Australian broker - Read our review
- eToro - Invest in ASX and international shares - Read our review
Profitability and growth
- Revenue growth
- 85.50%
- Revenue TTM
- 89.1B
- Profit margin
- 42.94%
Analyst view
Comparison uses the last price shown; targets are analyst estimates.
- Price
- $361.54
- Target price
- $531.31
- Target vs last price
- 46.96% from last price
- Rating
- 4.74
- Analysts
- 50
- strong_buy_count
- 40
- buy_count
- 7
- hold_count
- 3
- sell_count
- 0
- strong_sell_count
- 0
The supplied analyst data is strongly positive overall: the average rating is 4.74, with 40 strong-buy, 7 buy and 3 hold ratings among 50 analysts, and no sell or strong-sell ratings. The average target price is US$531.31, equivalent to 46.96% from the last price of US$361.54. These are secondary indicators and may not reflect future results or changing expectations.
Risks
Broadcom’s semiconductor business is exposed to changing demand across data-centre, networking, wireless and other end markets, while infrastructure software adds its own product and execution demands. The company’s broad offering does not remove the risks of competing in fast-moving technology markets. Its price-to-earnings ratio of 45.99 leaves the shares sensitive to any disappointment in earnings or growth expectations. The beta of 1.48 also indicates greater historical share-price sensitivity than the broader market. The shares are currently below both supplied moving averages, while remaining well within a wide 52-week range.
FAQ
What does Broadcom do?
Broadcom develops semiconductor products for areas including data-centre networking, wireless connectivity, servers and storage, alongside infrastructure software covering private cloud, mainframe operations and cybersecurity.
How large is Broadcom?
Its market capitalisation is displayed at US$1.7 trillion, with trailing 12-month revenue of US$89.1 billion.
Does Broadcom pay a dividend?
The supplied figures show an annual dividend per share of US$2.60 and a dividend yield of 0.69%. The yield is modest, so the investment case is more closely tied to the company’s growth and earnings profile than to current income.
How does Broadcom’s share price compare with its recent range?
At US$361.54, the share price sits within its 52-week range of US$288.95 to US$493.28. It is below both its 50-day moving average of US$372.60 and its 200-day moving average of US$368.09.
*This content is aimed to provide general information only, and does not take your personal objectives, financial situation or needs into account.