Company Introduction
Headquarters Location: San Jose, California, USA
Core Business: Broadcom Inc. (AVGO) is a leading semiconductor and software company that designs, develops, and supplies a broad range of semiconductor and infrastructure software solutions.
Overview
$336.41
85.94
3.91
$1,588.65B
Company Overview
Industry Sector: Technology
Industry Trends
Industry Growth Next 5 Years: The global semiconductor market is expected to grow at a CAGR of 8.3% from 2023 to 2028.
Key Demand Drivers: Increasing demand for 5G, cloud computing, and artificial intelligence.
Last 5 Year Cagr Industry Growth: The global semiconductor market grew at a CAGR of 10.3% from 2018 to 2022.
Major Competitors: Intel, Qualcomm, Texas Instruments
Financials
| 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $6.82B | $13.24B | $17.64B | $20.85B | $22.60B | $23.89B | $27.45B | $33.20B | $35.82B | $51.57B |
| YoY % | +94.1% | +33.2% | +18.2% | +8.4% | +5.7% | +14.9% | +20.9% | +7.9% | +44.0% | |
| EBITDA | $2.62B | $2.52B | $7.01B | $9.23B | $9.45B | $11.13B | $14.69B | $19.16B | $20.55B | $23.88B |
| YoY % | -3.8% | +178.2% | +31.7% | +2.4% | +17.8% | +32.0% | +30.4% | +7.3% | +16.2% | |
| FCF | $1.73B | $2.69B | $5.48B | $8.25B | $9.27B | $11.60B | $13.32B | $16.31B | $17.63B | $19.41B |
| YoY % | +55.5% | +103.7% | +50.5% | +12.4% | +25.1% | +14.8% | +22.4% | +8.1% | +10.1% | |
| EPS | 0.90 | 1.13 | 1.60 | 2.08 | 2.13 | 2.21 | 2.80 | 3.76 | 4.23 | 4.86 |
| YoY % | +25.6% | +41.6% | +30.0% | +2.4% | +3.8% | +26.7% | +34.3% | +12.5% | +14.9% |
Growth Drivers
Historical Growth Drivers: Acquisitions, such as the acquisition of CA Technologies in 2018, and strategic partnerships, such as the partnership with Apple.
Future Growth Drivers: The company's growth is expected to be driven by the increasing demand for 5G and cloud computing, as well as the adoption of artificial intelligence and machine learning.
Product Innovation: The company has been investing in research and development, with a focus on developing new semiconductor solutions and software products.
Technology Adoption: The company has been adopting new technologies, such as artificial intelligence and cloud computing, to improve its products and services.
Market Position
Competitive Position: Broadcom Inc. is a leading player in the semiconductor and software industry.
Estimated Market Share: The company has an estimated market share of around 12% in the global semiconductor market.
Technological Moat: The company has a strong technological moat, with a broad range of patents and intellectual property.
Strengths
- Strong financial performance
- Diversified product portfolio
- Strong research and development capabilities
- Experienced management team
Weaknesses
- Dependence on a few large customers
- Intense competition
- Regulatory risks
- Cyclical exposure
Valuations
Outlook
Balanced Forward Looking Analysis: The company is well-positioned for growth, with a strong product portfolio and a solid financial position. However, it faces intense competition and regulatory risks. Over the next 3-5 years, the company is expected to continue to grow, driven by the increasing demand for 5G and cloud computing, as well as the adoption of artificial intelligence and machine learning.
Opportunities: The company has opportunities to expand its product portfolio and increase its market share, particularly in the areas of 5G and artificial intelligence.
Risks: The company faces risks, including intense competition, regulatory risks, and cyclical exposure.
Stock Price Performance
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Price | 15.78 | 21.88 | 22.77 | 30.58 | 22.36 | 47.60 | 62.70 | 64.25 | 135.03 | 168.52 |
| YoY % | +38.7% | +4.1% | +34.3% | -26.9% | +112.9% | +31.7% | +2.5% | +110.2% | +24.8% |
Stock 3 Year Rolling CAGR
| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | Average |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | 37.23% | 16.34% | 8.61% | 4.64% | 6.70% | 11.60% | 9.28% | 15.81% | 13.78% |
| EBITDA | 38.79% | 54.24% | 10.50% | 6.41% | 15.84% | 19.86% | 11.84% | 7.62% | 20.64% |
| FCF | 47.02% | 45.30% | 19.12% | 12.05% | 12.87% | 12.04% | 9.80% | 5.97% | 20.52% |
| EPS | 21.14% | 22.55% | 10.01% | 2.04% | 9.55% | 19.38% | 14.74% | 8.93% | 13.54% |
| Price | – | 13.00% | 11.81% | -0.60% | 15.89% | 41.01% | 10.52% | 29.14% | 17.25% |
