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Broadcom

AVGO
75
Semiconductors · Technology
Also trades as: 0YXG.L
Price
$368.45
+4.42 (+1.21%)
Market Cap
$1.75T
Exchange
United States
Winston Score
75
Winston is happy
A high-quality business with solid fundamentals.
Data as of Aug 23, 2026 · filings through May 3, 2026
How the score breaks down
Quality
Exceptional
Growth
Exceptional
Cash Flow
Exceptional
Stability
Strong
Valuation
Good
Dividends
Good
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Share count rising — dilution

+13.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 4.29B (2021) → 4.85B (2025)

Winston Score History

The full picture

Broadcom makes computer chips and software that power the internet and large data centers. Its chips handle the flow of data inside networks, smartphones, and servers — key customers include Apple, Google, Meta, and major telecom companies. Broadcom is one of the largest semiconductor companies in the world and also owns enterprise software brands like VMware, which it acquired in 2023.

Broadcom earns money by selling chips directly to device makers and cloud companies, and by charging businesses subscription and license fees for its software products. It operates globally, with significant revenue from Asia-Pacific, North America, and Europe, generating over $50 billion in annual revenue. Its main competitive advantage is deep, long-term design partnerships with a small number of very large customers, making it hard to replace. The biggest growth driver is demand for custom AI chips, where Broadcom is building specialized processors for hyperscale cloud customers — though heavy customer concentration remains a key risk.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+47.9% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+86.7% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$11.0B/ year

↑ Rising (+18% vs prior year)

17.2% of revenue

In line with sector average (15%)

Investing heavily in future products and technology

Insider Activity

1.2%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$19.6B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Broadcom grew revenue 48% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
67.2%
Premium pricing power — 67.2% gross margin
Profit after running costs
Operating Margin
49.0%
Excellent — 49.0% operating margin
Return on the money invested
ROCE
21.6%
Exceptional — 21.6% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
+32.3%
Fast-growing sales (+32.3% YoY)
Profit growth
EPS YoY
+125.9%
Earnings growing fast (+125.9% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
7/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash
Cash Conversion
115%
Turns 115% of profit into real cash
Spare cash per sale
FCF Margin
43.4%
Converts sales into free cash efficiently (43.4%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns
Debt / Equity
0.74
Moderate — manageable debt (0.74)
Covers its interest
Interest Cover
10.96x
Comfortably covers interest (11.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
59.5x
Expensive — P/E 59.5

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
+45.6
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (59.5 → 13.9)

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Dividends

Dividend
Dividend Yield
0.71%
Small dividend — 0.71% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record
Dividend Growth
+10.4%
Dividend growing fast (10.4% YoY)

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