Upside case
Bull case
$705+64.9%
AVGO would need investors to value it at roughly 62x earnings — about 25x more generous than today's 38x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 2026
Broadcom Inc. (AVGO) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
58
analysts
52 bullish · 0 bearish · 58 covering AVGO
Strong Buy
0
Buy
52
Hold
6
Sell
0
Strong Sell
0
Consensus Target
$444
+3.8% vs today
Scenario Range
$12 – $705
Model bear to bull value window
Coverage
58
Published analyst ratings
Valuation Context
37.8x
Forward P/E · Market cap $2.03T
AVGO price targets
Three scenarios for where AVGO stock could go
Current
~$427
Confidence
70 / 100
Updated
May 1, 2026
Where we are now
Current · $427
Bear
$12
Base
$1090
Bull
$705
Market caseClosest to today
Base case
$1090+154.9%
At 96x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$12-97.2%
If investor confidence fades or macro conditions deteriorate, a 37x multiple contraction could push AVGO down roughly 97% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Broadcom Inc.
AVGO · NASDAQTechnologySemiconductorsNovember year-end
Broadcom is a semiconductor and infrastructure software company that designs and supplies critical components for data centers, networking, and connectivity. It generates revenue primarily from semiconductor sales (~70%) and infrastructure software licensing (~30%), with key segments including wired infrastructure, wireless communications, and enterprise storage. The company's moat lies in its deep engineering expertise, extensive patent portfolio, and entrenched positions in mission-critical infrastructure where customers face high switching costs.
Market Cap
$2.03T
Revenue TTM
$68.3B
Net Income TTM
$25.0B
Net Margin
36.6%
AVGO Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
100%Exceptional
12 quarters tracked
Revenue Beat Rate
75%Exceptional
vs consensus estimates
Avg EPS Surprise
+2.4%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Last 4 Quarters
EPS beats: 4 of 4Q2 2025
EPS
$1.58/$1.57
Revenue
$15.0B/$15.0B
Q3 2025
EPS
$1.69/$1.66
Revenue
$16.0B/$15.8B
Q4 2025
EPS
$1.95/$1.87
Revenue
$18.0B/$17.5B
Q1 2026
EPS
$2.05/$2.03
Revenue
$19.3B/$19.3B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2025 | $1.58/$1.57 | +0.6% | $15.0B/$15.0B | +0.3% |
| Q3 2025 | $1.69/$1.66 | +1.8% | $16.0B/$15.8B | +0.8% |
| Q4 2025 | $1.95/$1.87 | +4.3% | $18.0B/$17.5B | +3.1% |
| Q1 2026 | $2.05/$2.03 | +1.0% | $19.3B/$19.3B | +0.3% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$94.8B
+38.9% YoY
FY2
$125.7B
+32.5% YoY
EPS Outlook
FY1
$9.35
+83.1% YoY
FY2
$12.16
+30.0% YoY
Trailing FCF (TTM)$28.9B
FCF Margin: 42.3%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
AVGO beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
AVGO Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $63.9B
Product Mix
Latest annual revenue by segment or product family
Semiconductor Solutions
57.7%
+22.5% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Asia Pacific
56.2%
+26.3% YoY
Tap, hover, or focus a slice to inspect segment detail.
Semiconductor Solutions is the largest disclosed segment at 57.7% of FY 2025 revenue, up 22.5% YoY.
Asia Pacific is the largest reported region at 56.2%, up 26.3% YoY.
AVGO Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Overvalued
Fair value est. $333 — implies -21.0% from today's price.
Premium to Fair Value
21.0%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
AVGO
89.6x
vs
S&P 500
25.1x
+257% premium
vs Technology Trailing P/E
AVGO
89.6x
vs
Technology
26.7x
+235% premium
vs AVGO 5Y Avg P/E
Today
89.6x
vs
5Y Average
58.7x
+53% premium
Forward PE
37.8x
S&P 500
19.1x
+98%
Technology
22.1x
+71%
5Y Avg
—
—
Trailing PE
89.6x
S&P 500
25.1x
+257%
Technology
26.7x
+235%
5Y Avg
58.7x
+53%
PEG Ratio
1.80x
S&P 500
1.72x
+5%
Technology
1.52x
+18%
5Y Avg
—
—
EV/EBITDA
60.6x
S&P 500
15.2x
+298%
Technology
17.5x
+247%
5Y Avg
27.8x
+118%
Price/FCF
75.3x
S&P 500
21.1x
+257%
Technology
19.5x
+286%
5Y Avg
31.6x
+138%
Price/Sales
31.7x
S&P 500
3.1x
+915%
Technology
2.4x
+1198%
5Y Avg
13.6x
+133%
Dividend Yield
0.54%
S&P 500
1.87%
-71%
Technology
1.16%
-54%
5Y Avg
2.04%
-74%
| Metric | AVGO | S&P 500 | Technology | 5Y Avg AVGO |
|---|---|---|---|---|
| Forward PE | 37.8x | 19.1x+98% | 22.1x+71% | — |
| Trailing PE | 89.6x | 25.1x+257% | 26.7x+235% | 58.7x+53% |
| PEG Ratio | 1.80x | 1.72x | 1.52x+18% | — |
| EV/EBITDA | 60.6x | 15.2x+298% | 17.5x+247% | 27.8x+118% |
| Price/FCF | 75.3x | 21.1x+257% | 19.5x+286% | 31.6x+138% |
| Price/Sales | 31.7x | 3.1x+915% | 2.4x+1198% | 13.6x+133% |
| Dividend Yield | 0.54% | 1.87% | 1.16% | 2.04% |
AVGO trades above S&P 500 benchmarks on 5 of 6 measured multiples — commands a broad premium across most valuation dimensions.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolAVGO Financial Health
Verdict
Strong
AVGO generates $28.9B in free cash flow at a 42.3% margin — 14.9% ROIC signals a durable competitive advantage.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$68.3B
Revenue Growth
TTM vs prior year
+25.2%
Gross Margin
Gross profit as a share of revenue
67.1%
Operating Margin
Operating income divided by revenue
40.9%
Net Margin
Net income divided by revenue
36.6%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$5.11
Free Cash Flow (TTM)
Cash generation after capex
$28.9B
FCF Margin
FCF as share of revenue — the primary cash quality signal
42.3%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
14.9%
ROA
Return on assets, trailing twelve months
14.9%
Cash & Equivalents
Liquid assets on the balance sheet
$16.2B
Net Debt
Total debt minus cash
$49.0B
Debt Serviceability
Net debt as a multiple of annual free cash flow
1.7× FCF
~1.7 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
32.9%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
0.8%
Dividend
0.5%
Buyback
0.3%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$6.3B
Dividend / Share
Annualized trailing dividend per share
$2.30
Payout Ratio
Share of earnings distributed as dividends
48.2%
Shares Outstanding
Declining as buybacks retire shares
4.9B
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageAVGO Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 11, 2026
High Risk
Key Customer Dependency
Broadcom relies on a small group of major customers and distribution partners across its semiconductor and infrastructure software segments. A reduction in orders or loss of any of these key customers could materially harm the company’s revenue and profitability.
High Risk
China Regulatory & Tariff Risk
Directives from China to phase out foreign software, including VMware, from state‑owned enterprises threaten revenue streams. Additionally, U.S. tariffs on AI chip exports to China could squeeze margins and disrupt sales.
High Risk
High Debt from Acquisitions
Broadcom has taken on substantial debt to finance large acquisitions such as VMware. The elevated debt load could constrain financial flexibility and increase interest expense, impacting net income.
Medium
VMware Integration Challenges
Integrating VMware presents execution risks, including potential delays in realizing cost savings, customer or employee attrition, and difficulties merging systems and corporate cultures.
Medium
Market Cyclicality & Demand
Broadcom’s end markets are sensitive to economic fluctuations. A weakening economy can reduce enterprise spending on software and slow orders for electronics and data‑center products, leading to short‑term demand pauses.
Medium
AI Product Margin Pressure
The growing mix of AI‑driven products, which often carry lower margins, combined with rising component costs, can compress gross margins and erode profitability.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why AVGO Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 11, 2026
AI Infrastructure Dominance
Broadcom supplies custom AI accelerators (XPUs) and networking gear essential for AI data centers. Multi‑year deals with hyperscalers such as Google and Anthropic lock in demand, driving projected AI revenue to $60‑$90 billion by FY2027.
Record Backlog and Revenue Growth
The company’s backlog stands at $73 billion, signaling strong future demand. Q1 revenue hit $19.3 billion, up 29.5% YoY, with the semiconductor segment growing 52% and AI‑related revenue at $8.4 billion, a 106% jump.
VMware Integration and Software Revenue
The VMware acquisition is expected to boost profit margins and shift Broadcom toward recurring software revenue, adding a defensive layer to its business model.
Custom AI Silicon and Networking
Broadcom’s custom AI chips and networking products are in high demand from hyperscalers seeking cost, performance, and power efficiency. The company is positioned to benefit from the ongoing AI‑driven industrial buildout.
Strong Financial Performance
Broadcom enjoys industry‑leading operating margins, a net profit margin of 36.57%, and a return on assets of 14.93%. Trailing‑12‑month net income grew 148.53%.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
AVGO Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$427.45
52W Range Position
98%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$195.94
+118.2% from the low
52-Week High
$433.38
-1.4% from the high
1 Month
+35.94%
3 Month
+37.66%
YTD
+23.0%
1 Year
+113.0%
3Y CAGR
+89.3%
5Y CAGR
+57.3%
10Y CAGR
+40.5%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
AVGO vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
37.8x
vs 37.2x median
+2% above peer median
Revenue Growth
+38.9%
vs +10.5% median
+270% above peer median
Net Margin
36.6%
vs 23.0% median
+59% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
AVG AVGO Broadcom Inc. | $2.03T | 37.8x | +38.9% | 36.6% | Buy | +3.8% |
QCO QCOM QUALCOMM Incorporated | $196.6B | 17.4x | +1.4% | 22.3% | Hold | -6.2% |
MRV MRVL Marvell Technology, Inc. | $146.1B | 44.0x | +29.9% | 32.6% | Buy | -23.2% |
ADI ADI Analog Devices, Inc. | $197.6B | 35.4x | +16.0% | 23.0% | Buy | -7.5% |
TXN TXN Texas Instruments Incorporated | $255.7B | 37.2x | +10.5% | 29.1% | Buy | -9.7% |
INT INTC Intel Corporation | $543.2B | 103.7x | +3.9% | -5.9% | Hold | -28.7% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
AVGO Dividend and Capital Return
AVGO returns 0.8% total yield, led by a 0.54% dividend, raised 16 consecutive years.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
0.8%
Dividend + buyback return per year
Buyback Yield
0.3%
Dividend Yield
0.54%
Payout Ratio
48.2%
How AVGO Splits Its Return
Div 0.54%
Buyback 0.3%
Dividend 0.54%Buybacks 0.3%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.30
Growth Streak
Consecutive years of dividend increases
16Y
3Y Div CAGR
12.7%
5Y Div CAGR
12.6%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$6.3B
Estimated Shares Retired
15M
Approx. Share Reduction
0.3%
Shares Outstanding
Current diluted share count from the screening snapshot
4.9B
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.65 | — | — | — |
| 2025 | $2.42 | +11.5% | 0.4% | 1.0% |
| 2024 | $2.17 | +13.9% | 1.5% | 2.8% |
| 2023 | $1.91 | +12.7% | 2.1% | 4.3% |
| 2022 | $1.69 | +13.4% | 4.2% | 7.7% |
FAQ
7 questionsAVGO Investor Questions
Common questions answered from live analyst data and company financials.
01Is Broadcom Inc. (AVGO) stock a buy or sell in 2026?
Broadcom Inc. (AVGO) is rated Buy by Wall Street analysts as of 2026. Of 58 analysts covering the stock, 52 rate it Buy or Strong Buy, 6 rate it Hold, and 0 rate it Sell or Strong Sell. The consensus 12-month price target is $444, implying +3.8% from the current price of $427. The bear case scenario is $12 and the bull case is $705.
02What is the AVGO stock price target for 2026?
The Wall Street consensus price target for AVGO is $444 based on 58 analyst estimates. The high-end target is $510 (+19.3% from today), and the low-end target is $335 (-21.6%). The base case model target is $1090.
03Is Broadcom Inc. (AVGO) stock overvalued in 2026?
AVGO trades at 37.8x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals overvalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Broadcom Inc. (AVGO) stock in 2026?
The primary risks for AVGO in 2026 are: (1) Key Customer Dependency — Broadcom relies on a small group of major customers and distribution partners across its semiconductor and infrastructure software segments. (2) China Regulatory & Tariff Risk — Directives from China to phase out foreign software, including VMware, from state‑owned enterprises threaten revenue streams. (3) High Debt from Acquisitions — Broadcom has taken on substantial debt to finance large acquisitions such as VMware. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Broadcom Inc.'s revenue and earnings forecast?
Analyst consensus estimates AVGO will report consensus revenue of $94.8B (+38.9% year-over-year) and EPS of $9.35 (+83.1% year-over-year) for the upcoming fiscal year. The following year, analysts project $125.7B in revenue.
06When does Broadcom Inc. (AVGO) report its next earnings?
A confirmed upcoming earnings date for AVGO is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does Broadcom Inc. generate?
Broadcom Inc. (AVGO) generated $28.9B in free cash flow over the trailing twelve months — a free cash flow margin of 42.3%. AVGO returns capital to shareholders through dividends (0.5% yield) and share repurchases ($6.3B TTM).