BROADCOM INC (AVGO)

Broadcom Inc. is a global tech company that designs and develops both semiconductor chips and software solutions. Broadcom creates high-performance chips used in many everyday and enterprise technologies, including networking equipment, smartphones & wireless tech, home & telecom equipment, and industrial & energy systems.

Broadcom also provides powerful software that helps businesses manage and secure their IT systems. Its software is used by large companies, including many Fortune 500 businesses and government agencies to simplify IT operations, improve security, and optimize business operations.

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Financial Snapshot

Income Statement (*values displayed in millions)

How do they make money?

• Semiconductors (Largest Revenue Source):

  1. Networking Chips: Broadcom provides chips for data centers, telecom networks, and enterprise networking. These are used by companies like Google, Amazon, and major telecom providers.

  2. Broadband & Wireless Chips: Broadcom’s chips power Wi-Fi routers, cable modems, and set-top boxes, enabling high-speed internet streaming.

  3. Smartphone Components: Broadcom supplies chips for Wi-Fi, Bluetooth, GPS, and RF (radio frequency) technologies found in Apple, Samsung, and other major smartphone brands.

  4. Storage & Custom Silicon: Broadcom designs custom chips for AI, cloud computing, and enterprise storage solutions.

• Infrastructure Software: 

  1. Mainframe & Enterprise Software: Broadcom provides mission-critical software solutions used by large corporations, government agencies, and financial institutions for security, automation, and cloud management.

  2. Cybersecurity & Cloud Services: through acquisitions like Symantec’s enterprise security division, Broadcom generates revenue from security software and cloud-based solutions.

Good Time to Buy?

At the time of writing, AVGO is down 24% since its December 2024 52 Week High of 251.88/share. This company is not going anywhere anytime soon. In just two years, Broadcom’s revenue increased from $33B to $51B. That’s an increase of 54%! Right now, the market has provided a lot of great deals and Broadcom is one of them. Buy, set, and forget!

FYI