Broadcom Inc. (AVGO)

Broadcom's stock has experienced significant movements in the past six months, influenced by strong financial results, strategic acquisitions, and the growing demand for AI-related products. Broadcom reported record revenue for Q2 fiscal year 2025, driven by a 46% increase in AI revenue. The acquisition of VMware has been a pivotal component of Broadcom's business strategy. As of June 30, 2025, AVGO's stock price was $275.65, showing a 13.60% rise over the last month and a 72.73% increase over the last year. Broadcom rejoined the $1 trillion market capitalization club around May 28, 2025. As of June 2025, 94% of analysts rate Broadcom as a "buy." Broadcom executed a 10-for-1 stock split in July 2024. In Q2 fiscal 2025, the company repurchased shares worth $3.2 billion. Broadcom shares fell by 5% following the Q2 report due to investor caution regarding high valuation and concerns over growth sustainability.

Broadcom's net revenue has typically been higher in the second half of the fiscal year due to new mobile device launches. This seasonality can be overshadowed by macroeconomic effects, product transitions, and OEM launches. Broadcom's diversified business portfolio helps to mitigate some of these seasonal and cyclical fluctuations. Historically, June has closed higher than May in 68.75% of the previous 15 years.

Broadcom Inc. is a global technology leader that designs, develops, and supplies semiconductor and infrastructure software solutions. The company operates in the Electronic Technology sector, specifically within the Semiconductors industry. Broadcom's business is divided into two core segments: Semiconductor Solutions and Infrastructure Software. The Semiconductor Solutions segment includes products for data center networking, home connectivity, broadband access, telecommunications equipment, smartphones, and base stations. The Infrastructure Software segment provides mainframe, enterprise, and storage area networking solutions, including cybersecurity software. The acquisition of VMware in late 2023 significantly expanded Broadcom's presence in enterprise infrastructure software.

Broadcom Inc. has a global presence with products available worldwide through a network of distributors, contract manufacturers, original equipment manufacturers, and a direct sales force. The company has a strong business presence in North America, Asia, Europe, the Middle East, and Africa. As of the quarter ending January 2025, Asia Pacific accounted for 53.85% of its total revenue, and Europe, the Middle East, and Africa contributed 15.10%. Broadcom is headquartered in San Jose, California, USA, with numerous offices and facilities globally.

Broadcom's brand reputation has been shaped by its strategic acquisitions, particularly VMware, and its role in the AI market. The company has solidified its position through innovative products and strategic acquisitions, with advancements in Wi-Fi 6, Bluetooth 5.0, and networking solutions. Broadcom is committed to reducing its environmental impact through energy-efficient manufacturing processes and sustainable practices. The company faces challenges such as supply chain disruptions and regulatory scrutiny, and the VMware acquisition has brought integration costs.

Broadcom Inc. is primarily owned by institutional shareholders, who own 74.37% of the company. Broadcom insiders own 30.26%, and retail investors own 0.00%. Major institutional owners include Vanguard Group Inc., BlackRock Inc., and State Street Corp. Key individual owners include KKR Europe II Ltd, Henry Samueli, and Hock E. Tan.