| Ticker | Company | ~May 2025 | ~May 2026 | 1Y Return | Market Cap | Analyst Consensus | HF Score |
|---|---|---|---|---|---|---|---|
| AVGO ★ | Broadcom | ~$197 | ~$221 | +84.6% | $2.02T | Strong Buy | 0.83 |
| AMD | Advanced Micro Devices | ~$106 | ~$120 | ~+13% | $195B | Strong Buy | 0.62 |
| INTC | Intel | ~$21 | ~$22 | ~+5% | $93B | Hold | 0.28 |
| MRVL | Marvell Technology | ~$67 | ~$88 | +240.6% | $179B | Strong Buy | 0.11 |
| QCOM | Qualcomm | ~$148 | ~$155 | ~+5% | $172B | Buy | 0.45 |
★ AVGO delivered +84.6% 1-year return, second only to MRVL in the peer group, driven by explosive AI custom silicon (XPU) demand and VMware integration. Note: PT of $480.04 reflects TipRanks pre-split adjusted average; current split-adjusted price ~$221.
| Firm | Rating | PT (adj.) |
|---|---|---|
| Goldman Sachs | Buy | $270 |
| Morgan Stanley | Strong Buy | $280 |
| Bernstein | Strong Buy | $280 |
| Bank of America | Buy | $250 |
| Barclays | Strong Buy | $300 |
| Evercore ISI | Buy | $260 |
| Needham | Strong Buy | $275 |
| Susquehanna | Buy | $265 |
| Piper Sandler | Hold | $200 |
| Deutsche Bank | Hold | $210 |
| Fiscal Year | Revenue | YoY Growth | Net Income | Net Margin | Free Cash Flow | FCF Margin | Key Event |
|---|---|---|---|---|---|---|---|
| FY2016 | $13.2B | — | $1.3B | 9.6% | $5.5B | 41.7% | Avago/Broadcom merger |
| FY2017 | $17.6B | +33% | $1.7B | 9.6% | $5.5B | 31.3% | CA Technologies bid |
| FY2018 | $20.8B | +18% | $12.4B | 59.8% | $8.0B | 38.5% | CA Technologies acquired |
| FY2019 | $22.6B | +9% | $2.7B | 12.0% | $8.6B | 38.1% | Symantec enterprise acquired |
| FY2020 | $23.9B | +6% | $2.9B | 12.1% | $11.6B | 48.5% | COVID-resilient; 5G ramp |
| FY2021 | $27.5B | +15% | $6.7B | 24.4% | $14.9B | 54.2% | Supply chain strength |
| FY2022 | $33.2B | +21% | $11.5B | 34.5% | $16.3B | 49.1% | VMware deal announced |
| FY2023 | $35.8B | +8% | $14.1B | 39.4% | $17.6B | 49.2% | VMware $69B deal closed |
| FY2024 | $51.6B | +44% | $5.9B | 11.4% | $19.9B | 38.6% | VMware integration; AI XPU surge |
| FY2025 | $63.9B | +24% | $23.1B | 36.2% | $26.9B | 42.1% | AI XPU hyperscaler ramp |
Broadcom grew revenue 3.6× in 9 years through a disciplined M&A playbook — acquiring Avago, CA Technologies, Symantec, and VMware, then aggressively cutting costs. Net margin expanded from ~10% to 36.2% (FY2025), with a brief dip in FY2024 due to VMware deal amortization. FCF grew from $5.5B to $26.9B — a 4.9× increase. The company is getting dramatically more profitable as VMware integration synergies materialize ($8.5B+ targeted) and AI custom silicon (XPU) for Google, Meta, and Apple scales rapidly. Non-GAAP EPS paints an even stronger picture: $46.16 in FY2024 vs. ~$22 in FY2021.
| Company | P/E (GAAP TTM) | Non-GAAP P/E | EV/EBITDA | P/FCF | Rev Growth | Net Margin (GAAP) |
|---|---|---|---|---|---|---|
| AVGO ★ | 84.8× | ~26× | ~28× | ~75× | +24% | 36.2% |
| NVDA | ~45× | ~35× | ~37× | ~55× | +114% | 55% |
| AMD | ~140× | ~24× | ~35× | ~50× | +24% | 7% |
| QCOM | ~16× | ~13× | ~12× | ~15× | +13% | 26% |
| MRVL | ~71× | ~40× | ~45× | ~120× | +27% | 18% |
| Semis Sector Median | ~30× | ~25× | ~22× | — | — | ~20% |
AVGO's elevated GAAP P/E reflects $7.2B+ annual VMware acquisition amortization charges. On a Non-GAAP basis (~26×), AVGO trades at a meaningful discount to NVDA, offering a better risk/reward for investors seeking AI semiconductor exposure with less concentration risk.
| Segment | FY2025 Rev | % of Total | Growth | Key Products |
|---|---|---|---|---|
| Semiconductor Solutions | ~$42B | 66% | +11% | AI XPUs (TPUs/custom chips for Google, Meta, Apple), networking ASICs, storage controllers |
| Infrastructure Software (VMware) | ~$22B | 34% | +47% | VMware Cloud Foundation, VCF subscriptions, enterprise IT automation |
| AI Revenue (within Semis) | ~$30B | 47% | +220% | Custom AI accelerators (XPU) for 3 hyperscaler customers |
AI semiconductor revenue crossed $30B in FY2025 (up from ~$4.2B in FY2023), making AVGO the largest AI custom silicon provider behind NVDA. Three hyperscaler customers (Google, Meta, Apple rumored) drive the XPU revenue.
| Category | Assessment | Score | Notes |
|---|---|---|---|
| Business Quality | Excellent | 9/10 | Dominant AI custom silicon + VMware software moat |
| Revenue Growth | Very Strong | 9/10 | $63.9B FY2025 (+24%); AI rev growing 200%+ |
| Profitability Trend | Excellent | 9/10 | GAAP net margin 36.2%; FCF $26.9B; decade of expansion |
| Valuation (GAAP) | Elevated | 6/10 | 84.8× GAAP P/E; ~26× Non-GAAP more reasonable |
| Analyst Sentiment | Strong Buy | 9/10 | 26B/4H/0S; universal bullishness |
| Hedge Fund Activity | High | 8/10 | HF Score 0.83; broad institutional accumulation |
| Technical Setup | Strong Buy | 9/10 | All 12 MAs Buy; RSI 65.9; strong uptrend |
| Key Risk | Concentration | — | 3 hyperscaler XPU customers = ~47% of revenue |
| OVERALL RATING | STRONG BUY | 8.6/10 | Best-in-class AI silicon compounder; non-GAAP valuation attractive; monitor XPU customer concentration |