Broadcom (AVGO): AI Demand-Driven Growth and Stock Potential

This site is a great place for me (@mifsee(2) has been working on company and stock analysis while learning privately.

This is only a record of my personal analysis and the contents may contain errors or information that differs from the actual situation. Please understand in advance when viewing this site.

Introduction.

Among AI semiconductor stocks, Broadcom is expected to grow second only to NVIDIA. Its growth potential is particularly impressive because of its strength in the data center AI field, which is used by many tech companies.

Broadcom has implemented a 1-for-10 stock split effective July 15, 2024, making it easier for individual investors to purchase shares.

Personally, I was reluctant to include Broadcom in my portfolio because its stock price was a bit high, but I proceeded to analyze the stock in detail in order to specifically consider purchasing it after the stock split.

Broadcom has a broad product portfolio and unparalleled operating margins.
Its growth has also been spectacular. This article will delve deeper into Broadcom's business, its unique strengths, and its future prospects.

What is Broadcom (AVGO) and what is its business?

• Broadcom Inc,A global technology company providing semiconductor and infrastructure software solutions.
• Founded in 1961, the company is currently headquartered in Palo Alto, California.
• The company traces its origins to prominent technology organizations such as AT&T/Bell Labs, Lucent, and Hewlett-Packard/Agilent, and builds on these rich technological foundations.
• Broadcom continues to demonstrate technology leadership in semiconductor and infrastructure software solutions.Its product line has established itself as a global leader, serving the most successful companies around the world.
• With its broad product portfolio, Broadcom helps its customers succeed in an ever-changing market environment.

Broadcom's corporate information is below.

• Company Name:: Broadcom Inc.
• Date of Establishment: 1961
• Name of Representative:Hock E. Tan : Hock E. Tan
• Official Site: https://www.broadcom.com
• Principal Business:.Semiconductor Solutions and Infrastructure Software

What are Broadcom's (AVGO) main products and services?

Broadcom offers a wide range of products and services in the areas of semiconductor and infrastructure software, including

Semiconductor Solutions

• System-on-Chip (SoC):
  • set-top box
  • cable modem
  • Digital Subscriber Line
  • Passive Optical Networking SoC
• Wireless Communication Devices:
  • Wi-Fi
  • Bluetooth
  • GPS/GLONASS SoC
• Networking Products:
  • Ethernet switch
  • router
  • Custom Silicon Solutions
  • Fiber Optic Components
  • RF Semiconductor Devices
• Storage and Interfaces:
  • PCIe Controller
  • Fibre Channel Host Bus Adapter
  • Custom Flash Controller
• Industrial and other applications:
  • optocoupler
  • Industrial Optical Fiber
  • Motion Control Encoder

Infrastructure Software

• Enterprise Networking and Storage:
  • Data Center Networking
  • Mobile devices and broadband connectivity
  • mainframe
  • cyber security
• Cloud Infrastructure:
  • VMware integration to provide solutions
  • Cloud and Data Center Products

Broadcom's product portfolio is diverse, used in many markets, and has established itself as a trusted partner to companies around the world.

What kind of business does Broadcom have in the AI field?

Broadcom has made significant progress in the AI field.
Below is a description of Broadcom's AI-related business.

Development of custom AI chips (ASIC)

Broadcom is particularly interested inFocus on designing and manufacturing custom AI chips (ASICs)The company has been providing advanced AI chips to its major partners, Google and Meta.
Examples include Google's TPUv7 and Meta's third-generation AI chip (MTIA 3), which support high-performance AI training and inference processes.

Reinforcement of network infrastructure

Broadcom is,It provides networking solutions for AI data centers.
The company's high-performance Ethernet switches and routers are essential elements to support its 10,000+ AI accelerator clusters, which significantly increase the processing speed and efficiency of AI training and inference.

Innovations in PCIe Technology

Broadcom announces the world's first 5nm PCIe Gen 5.0 and Gen 6.0 retimers,Helping to scale AI workloadsThe company is working on a new technology. This technology is,It is a seamless integration of AI clusters and an innovation of the data center ecosystem.

Financial Outlook and Growth Strategy

Broadcom expects AI-related revenues to reach $11 billion in FY2024. This is supported by strategic partnerships with Google and Meta, which are expected to grow further in FY2025.
Broadcom isNVIDIA (NVIDIA)The company has solidified its position as the top AI semiconductor supplier after

Like this,Broadcom's innovation and strong partnerships in the field of AI are expected to lead to significant growth in the future.The company continues to demonstrate broad market leadership through the development of AI chips and the enhancement of its network infrastructure.

What exactly is Broadcom's custom AI chip (ASIC)?

Broadcom's custom AI chips (ASICs) are advanced semiconductor devices optimized for specific AI workloads.
These chips are developed primarily through partnerships with leading technology companies,Designed to improve AI training and inference performance.

Key Features and Benefits

• High performance and scalability: Broadcom's custom AI chips are specifically designed for AI training and inference tasks and can support tens of thousands of GPUs.Very large AI clusters can be built efficiently.
• Optimized networking: These chips integrate fast Ethernet switching and highly efficient communication protocols to minimize network bottlenecks in AI workloads.
  For example, Broadcom's Jericho3-AI chip is designed for specific AI workloads and provides load balancing and congestion control capabilities.
• Custom Solutions: Broadcom develops custom AI chips for specific customers such as Google's TPUv7 and Meta's MTIA 3. These companies build their own AI solutions to maximize AI training and inference efficiency.
• Low latency and high bandwidth: AI/ML workloads typically involve large amounts of data transfer, so low latency and high bandwidth are critical, and Broadcom's custom AI chips leverage state-of-the-art networking technology and silicon photonics to meet these requirements.
• energy efficiency: Highly efficient power management functions are provided,Reduce power costs, which is important for large data center operators.
  For example, the Tomahawk 5 chip can reduce power for optical connections by more than 50%.

Through these features, Broadcom's custom AI chips enable high-performance computation and data processing in the field of AI and provide optimized solutions tailored to the needs of our partners.

What is the Jericho3-AI chip?

Jericho3-AIis an advanced networking chip developed by Broadcom that provides a high-performance fabric specifically for AI. Below are its main features and benefits.

• Jericho3-AI provides the high bandwidth and low latency needed to efficiently train and infer large AI models.
• The chip distributes traffic evenly to maximize network utilization for optimal performance, and end-to-end traffic scheduling prevents flow collisions and jitter.
• Jericho3-AI supports up to 32,000 GPUs in a single cluster, each providing ultra-high radix with 800 Gbps connections. This characteristic enables the creation of large-scale AI infrastructures.
• The chip is 40% more power efficient than the previous generation of chips and is expected to reduce costs when operating large AI clusters.

The Jericho3-AI chip is,Innovative solutions to increase the efficiency of AI training and inferenceIt is highly valued by cloud operators and data centers as a By this technology,AI-related job completion times will be reduced by at least 10%, significantly improving network efficiency.

What is Tomahawk 5 Ethernet switch chip?

Tomahawk 5is the latest Ethernet switch chip developed by Broadcom, specifically designed for next-generation data center and cloud computing environments. The chip has the world's first Ethernet switching capacity of 51.2 terabits per second (Tbps) and offers twice the bandwidth of any other switch silicon available on the market today.
The following are its main features and advantages

1. Tomahawk 5 has a switching capacity of 51.2 Tbps, which allowsSignificantly improve network performance within the data center.This will be critical to accommodate the growth of cloud and AI/ML (machine learning) workloads.
2. The chip features real-time dynamic load balancing, which optimizes overall network utilization, reduces network congestion, and shortens job completion times for AI/ML workloads.
3. Tomahawk 5 supports 256 200GbE ports on a single chip for flat, low-latency AI/ML clusters. This allows,Enables the construction of large data centers and AI infrastructures.
4. Compared to the previous generation, Tomahawk 5 can reduce power for optical connectivity by more than 50%, which is expected to reduce operating costs. It also uses the latest silicon photonics technology to provide efficient connections.
5. Tomahawk 5 has features specifically designed for AI/ML training clusters, as well as virtualization capabilities such as VxLAN routing and bridging. This provides an integrated network infrastructure throughout the data center.

Tomahawk 5 is an industry-leading solution with advanced technology and high performance to support next-generation data center infrastructure.
It provides cloud providers and large data center operators with an efficient and scalable network to meet the demands of AI/ML workloads.

What's so great about Broadcom (AVGO)?

The amazing thing about Broadcom Inc. is its extensive technology and market leadership. First, the company offers cutting-edge custom chips in the field of AI, working with leading companies such as Google and Meta to significantly improve AI performance and make the AI training and inference process faster and more efficient.

In addition, Broadcom hasProvides high-performance networking solutions to enhance the network infrastructure of AI data centersThe company is working on a new system. This enables support for large AI clusters, dramatically increasing the speed and efficiency of data processing.

In addition, innovative PCIe technology will be developed to help scale AI workloads, making AI cluster consolidation and data center operations even more efficient.

Overall, Broadcom continues to demonstrate leadership in the AI field through its technology, innovation, and strong partnerships.

Who is Broadcom's (AVGO) customer base?

Broadcom's customer base is spread across a wide variety of industries.
Below is a description of its main clientele.

technology company

• Google (WWW search engine)andMetaand other leading technology companies are using Broadcom's custom AI chips (ASICs) to improve AI training and inference performance.

Cloud Service Provider

• Amazon Web Services (AWS), ,Microsoft Azure, ,Alibaba Cloudand other cloud service providers use Broadcom networking and storage solutions to optimize data center performance and efficiency.

telecommunications carrier

• AT&Tand ... andVerizonand other telecommunications companies are using Broadcom's high-performance silicon solutions to deploy 5G infrastructure, enabling them to build networks quickly and efficiently.

Data Centers and Internet Service Providers

• Baiduand ... andByteDanceand other Internet service providers have adopted Broadcom's switching chips and networking solutions to build large-scale data center infrastructures.

Enterprise Customers

• Broadcom's products are also used in enterprise networking, storage, and security solutions. This includes a variety of industries such as financial services, healthcare, and manufacturing.

Open Source and Open Networking

• Broadcom is also an active contributor to open source projects such as SONiC (Software for Open Networking in the Cloud) and SAI (Switch Abstraction Interface), which have enabled a broad customer base to This has enabled the company's technology to be used by a wide range of customers.

Broadcom's broad product portfolio and technological innovations serve a diverse customer base, providing custom solutions tailored to the needs of each industry.

What is the trading market?

Broadcom Inc. (ticker: AVGO) is listed on NASDAQ. Broadcom is positioned as one of the major technology stocks traded on this market.

Why is Broadcom's ticker symbol AVGO?

The reason why Broadcom's ticker symbol is "AVGO" comes from the company's history and acquisitions.

historical background

Originally known as Avago Technologies, now Broadcom, founded in 2009, Avago Technologies was created by spinning off the semiconductor business unit that was part of Hewlett-Packard (HP). Avago Technologies was created by spinning off the semiconductor business unit of Hewlett-Packard (HP).

Acquisitions and Name Changes

In 2015, Avago Technologies acquired then Broadcom. As a result of this acquisition, Avago Technologies changed its corporate name to "Broadcom Limited," but continues to use the stock market ticker symbol "AVGO" to maintain existing investor and market recognition after the acquisition.

Meaning of Ticker Symbols

The ticker symbol "AVGO" comes from the original company name, Avago. This demonstrates to the market the growth and development of the company while retaining historical continuity and brand recognition.

What are Broadcom's sectors, industries, and themes to which it belongs?

sector

Information Technology: Broadcom is part of the Information Technology sector and designs, develops and provides a wide range of semiconductor and infrastructure software solutions.
The sector is characterized by rapid technological innovation and the need to respond to rapidly evolving market demands, and Broadcom offers products and services in line with this trend, always adapting to the latest technology and market needs.

type of industry

Semiconductors: Broadcom is classified in the semiconductor industry. The company manufactures a wide variety of semiconductor products including system-on-chips (SoCs), custom AI chips (ASICs), and high-performance networking solutions. These products are essential for a variety of data center, networking, broadband, wireless communications, storage, and industrial applications.

Themes belonging to

Data Centers and AI: Broadcom's business has a particular focus on data centers and artificial intelligence (AI) applications. Its products are optimized for AI training and inference, and through partnerships with leading tech companies, it is improving AI performance.

Dividends?

Broadcom pays a regular dividend, with a dividend yield of approximately 1.28% in 2024.
Dividends have been increasing every year, with an average annual dividend growth rate of approximately 12.58% over the past three years.

What is the size and growth potential of the industry to which Broadcom (AVGO) belongs?

The semiconductor industry, of which Broadcom is a part, is,Global market size projected to reach approximately $681 billion by 2024The market is expected to continue to grow rapidly. This market is expected to continue to grow rapidly,It is expected to reach $2,625.9 billion in 2032. This represents a compound annual growth rate (CAGR) of approximately 14.9%.

Main Growth Factors

1. Increased demand for AI and machine learning (ML): The semiconductor industry is experiencing significant growth due to the rapid proliferation of AI and ML applications, including demand for custom AI chips (ASICs) from companies like Broadcom.
2. Automated Driving and Electric Vehicles (EVs): Automated driving technology and the growing market for electric vehicles are also major factors driving demand for semiconductors. Advanced semiconductor chips are essential for these technologies and are expected to grow substantially in the coming years.
3. Advances in 5G and the Internet of Things (IoT): The deployment of 5G networks and the proliferation of IoT devices will further increase the demand for semiconductors. These technologies require advanced semiconductor solutions for high-speed and reliable data communication.
4. Market Growth by Region: The Asia-Pacific region has shown the highest growth among the global semiconductor markets, reaching $308.95 billion in 2023. China, in particular, is expected to continue to gain market share due to the strong presence of local semiconductor manufacturers.
5. Investments in research and development (R&D): In North America, semiconductor companies are investing heavily in R&D, which is driving innovation and market growth.

The semiconductor industry is expected to continue to grow at a high rate due to the advancement of emerging technologies such as AI, 5G, automated driving, and IoT.

Thus, the semiconductor industry, of which Broadcom is a part, is a highly dynamic and growing market that is expected to continue to expand due to technological innovation and the proliferation of emerging technologies.

Who are Broadcom's (AVGO) competitors?

Broadcom's main competitors include.

• Intel [INTC]:.Intel is the largest manufacturer of microprocessors and semiconductor products, with a particularly strong position in the PC and server markets; it also offers solutions for AI and data centers.
• NVIDIA [NVDA].:NVIDIA is widely known for its GPUs (graphics processing units) and dominates market share with leadership in AI and machine learning and data center solutions in particular.
• Qualcomm [QCOM].:Qualcomm is known primarily for its mobile communications technology and processors, but also has strengths in 5G technology and semiconductor solutions for IoT devices.
• Texas Instruments [TXN]:.Texas Instruments is a leading manufacturer of analog and digital semiconductors, providing solutions for a wide range of industries. The company is particularly strong in the areas of embedded systems and electronics.
• Advanced Micro Devices [AMD].:AMD is primarily a CPU and GPU manufacturer with competitive advantages in the gaming, data center, AI, and enterprise solutions markets.
• Micron Technology [MU].:Micron is a leading manufacturer of memory and storage solutions, particularly known for its DRAM, NAND, and NOR flash memory. These products are used in a wide range of electronic devices and data centers.
• Samsung Electronics:.Samsung Electronics has an extensive semiconductor product portfolio, offering memory chips, processors, and display driver ICs. In particular, the company has a strong presence in solutions for smartphones and data centers.

Broadcom, along with these competitors, is driving innovation and constantly evolving its products and services to meet the needs of a rapidly evolving market.

What are Broadcom's (AVGO) differentiators and advantages over the competition?

Broad product portfolio

Broadcom has an extensive semiconductor and infrastructure software product line to meet diverse market needs. This includes system-on-chips (SoCs), custom AI chips (ASICs), and networking solutions. This broad product portfolio allows the company to approach different market segments simultaneously, which is a major strength.

Custom AI Chip Leadership

Broadcom enables high-performance AI training and inference by providing custom AI chips optimized for specific AI workloads. This custom chip design and manufacturing capability is a strength not found in other competitors.

Advanced networking technology

Networking chips such as Broadcom's Jericho3-AI and Tomahawk 5 are designed for high-performance, low-latency networking that can optimize the operation of large data centers and AI infrastructure. Tomahawk 5, in particular, is the world's first with 51.2 Tbps of Ethernet switching capacity, demonstrating technology leadership within the industry.

Integrated infrastructure software

Broadcom's integrated enterprise networking and storage, cloud infrastructure, and security solutions enable companies to manage and operate consistently and improve overall efficiency.

Strong financial position and sustainable dividend growth

Broadcom has a strong financial position and generates stable cash flow. This provides sustainable dividend growth for shareholders and is trustworthy and popular with investors.

Continued investment in research and development (R&D)

Broadcom continuously invests in R&D to drive innovation, develop cutting-edge technologies, and remain competitive in the marketplace.

These factors give Broadcom an edge over its competitors and make it an industry leader.

What is Broadcom's (AVGO) growth strategy?

Broadcom is,The company is moving forward with plans to acquire and integrate VMware, a provider of virtualization technology and cloud computing software.

VMware's virtualization technology and cloud management software will create synergies with Broadcom's existing networking and storage solutions to provide a comprehensive cloud and data center management solution.

What is VMware?

VMwareis a provider of virtualization technology and cloud computing software. Simply put, VMware provides technology to efficiently use computer resources (e.g., CPU and memory).

What is virtualization?

Virtualization is a technology that allows one physical computer (server) to operate as multiple virtual computers (virtual machines). This allows multiple operating systems and applications to run simultaneously on a single server, greatly improving resource utilization efficiency.

What are VMware's acquisition costs?

Broadcom spent about $61 billion in cash and stock to acquire VMware.
Including the debt associated with the acquisition, the total cost will reach approximately $69 billion (approximately 7.6 trillion yen).
This acquisition is,This is a very large investment for Broadcom and an important strategic step to strengthen the company's competitiveness in the enterprise cloud and enterprise software space.

What effect will VMware integration have?

Broadcom's integration of VMware will have a wide range of benefits by combining the strengths of both companies. Below are some of the key possible benefits.

Creation of Synergy Effects

The integration of VMware's virtualization technology and cloud management software will synergize with Broadcom's networking and storage solutions to give customers a comprehensive solution that can be consistently managed and operated.

Enhanced Cloud and Enterprise Solutions

VMware's cloud management tools will enhance Broadcom's existing cloud infrastructure solutions and provide more advanced management capabilities. This will enable cloud service providers and enterprise customers to achieve more flexible and efficient cloud operations.

Enhanced virtualization technology

VMware virtualization technology improves the efficiency of data centers and enterprise IT infrastructure. When combined with Broadcom hardware, it optimizes resources and improves operational efficiency.

Creation of new market opportunities

VMware's products and technology have the opportunity to expand into market segments that Broadcom has not previously accessed, allowing Broadcom to reach new customer segments and increase market share.

Fostering R&D and Innovation

The integration of Broadcom and VMware's research and development capabilities will further promote technological innovation. In particular, new product development is expected in the areas of cloud computing, AI, and networking.

Improved cost efficiency

Consolidation is expected to reduce operational costs and increase efficiency. This includes cost savings through the use of common infrastructure and economies of scale.

Broadcom's VMware integration will have a wide range of benefits. It will enable Broadcom to further enhance its competitiveness and maintain its market leadership.

Broadcom (AVGO) Financial Results

Broadcom's financial year ends on October 31.
Quarterly financial results are released according to the following schedule.

• First Quarter ResultsAround early March
• Second Quarter Financial ResultsAround early June
• Third Quarter ResultsAround: Early September
• Fourth Quarter and Full Year ResultsAround: Early December

First, we will review the following four indicators to perform a minimum performance analysis of Broadcom (AVGO).

1. Sales:An indicator of a company's performance and growth.
2. Operating cash flow and operating cash flow margin:An indicator that looks at how much cash a company generates from its services. Margins are considered excellent when they are 15% of that ratio.
3. Operating Income:Profit earned by a company from its core business. An indicator to evaluate a company's performance.
4. EPS:An indicator that looks at a company's earning power "profitability" and "growth potential" in terms of net income per share. The higher the number, the higher the profitability.

Each data is,Investing.com, ,TradingViewSee from

Broadcom (AVGO) Stock Price

View the current real-time stock price chart (TradingView) for Broadcom (AVGO).

The chart shows the Relative Strength Index (RSI). Reference as an indicator of market overheating.

*An overbought indicator when the RSI exceeds 70% to 80%, and conversely, an oversold indicator when the RSI falls below 20% to 30%.

Current real-time stock price chart for Broadcom (AVGO)

Broadcom Quarterly: Sales Trends

Quarterly sales forecasts and actual sales and year-on-year changes.

Sales forecasts and actual results are shown in graphs.

Broadcom Quarterly: Operating Cash Flow Trends

Quarterly operating cash flow and operating cash flow margin.

Each transition is shown in the graph below.

Broadcom Quarterly: Operating Income and Operating Margin Trends

Quarterly operating income and operating margin.

Each transition is shown in the graph below.

Broadcom Quarterly: EPS Trends

Quarterly EPS forecast and actual EPS.

Each transition is shown in the graph below.

Broadcom's Full Year: Sales Trends

This is the sales forecast for the full year and actual sales and year-on-year changes.

Each transition is shown in the graph below.

Broadcom Full Year: Operating Cash Flow Trends

Operating cash flow for the full year and operating cash flow margin.

Each transition is shown in the graph below.

Broadcom's Full Year: Operating Income and Operating Margin Trends

Operating income and operating margin for the full year.

Each transition is shown in the graph below.

Broadcom Full Year: EPS Trends

This is the EPS forecast and actual EPS for the full year.

Each transition is shown in the graph below.

What is the future life of Broadcom (AVGO)? What are the future developments?

Broadcom Inc. is a leader in semiconductor and infrastructure software with strong positions in several growth areas. Below are the major growth drivers.

• AI and Data Center Growth: Broadcom has a strong product portfolio in AI chips and networking solutions for data centers. In particular,Products such as the Jericho3-AI chip and the Tomahawk 5 switch chip are expected to significantly improve AI training and inference efficiency.
• 5G Infrastructure DeploymentBroadcom's high-performance silicon solutions are playing an important role for telecommunications carriers as 5G networks continue to be deployed,Broadcom is strengthening its presence in the 5G market.
• Cloud Computing Expansion： With the increasing demand for cloud services,Broadcom is strengthening its solutions for cloud providers.We are working with Amazon Web Services (AWS), Microsoft Azure, and other leading cloud providers to improve the efficiency and performance of our cloud infrastructure.
• Expansion of Enterprise Solutions: With the VMware integration, Broadcom has enhanced its cloud and virtualization solutions for the enterprise. This will enable companies to improve the efficiency of their IT infrastructure and reduce operational costs.

Broadcom's future development

• Benefits of VMware Integration： VMware integration is expected to improve the efficiency and flexibility of customers' IT infrastructures.
• New product development and market launch： Broadcom is focused on introducing new technologies in growth areas such as AI, 5G, and cloud computing, and plans to develop and bring new products to market through ongoing research and development.
• Expansion into global markets： Broadcom is strengthening its presence in global markets, including the Asia-Pacific region. This region is an important growth market for Broadcom due to the rapidly increasing demand for semiconductor and technology products.
• Pursuit of sustainable growth： Broadcom is pursuing environmentally sustainable growth, developing energy-efficient products and optimizing its manufacturing processes.

Broadcom is committed to sustainable growth through a strong product portfolio in growth areas and strategic acquisitions (VMware integration), and is expected to continue to drive innovation and maintain market leadership.

Broadcom (AVGO) Q2 2024 Financial Results Summary

• Net sales: $12.487 billion, an increase of $431 TP3T over the same period last year.
• GAAP Net Income: $2.121 billion, or $4.42 per share.
• Non-GAAP Net Income: $5.394 billion, or $10.96 per share.
• Adjusted EBITDA: $7.429 billion, equivalent to 591 TP3T of sales.
• Operating Cash Flow: $4.58 billion; free cash flow, net of capital expenditures, was $4.448 billion.

Performance by Segment

• Semiconductor Solutions: Net sales of $7,202M, up 6% from the same period last year.
• Infrastructure Software: Net sales of $5.285 billion, up 1,751 TP3T from the same period last year.

Management's Comments

Hock Tan, CEO of Broadcom, said the company achieved record revenue thanks to AI demand and VMware's contribution. He also reported that infrastructure software revenues are accelerating, with many companies adopting the VMware software stack to build their own private clouds.

Dividends and stock splits

• dividend: Announces quarterly cash dividend of $5.25 per share.
• stock split: Announced a 10-for-1 stock split, with post-split trading scheduled to begin on July 15, 2024.

Future Outlook

• Full Year Forecast for FY2024:
  • Net sales: Approximately $51.0 billion is expected.
  • Adjusted EBITDA: Approximately 611 TP3T of sales are expected.

Broadcom achieved strong results in the second quarter of FY2024 with contributions from AI products and VMware. Revenues and profits were up significantly YoY, and the company expects continued growth. Quarterly dividends and stock splits also make the company more attractive to investors.

Which brokerage firms can I buy shares of Broadcom (AVGO)?

The following is a list of major brokerages that offer shares of Broadcom (AVGO). At these brokerages, you can choose to invest as a CFD (Contract for Difference) as well as directly as a foreign stock.

I myself mainly use SBI Securities, but some stocks they handle may not be available for purchase. In such cases, I sometimes use CFDs at Saxo Bank Securities or IG Securities.

summary

We have delved into the details of Broadcom's business, its unique characteristics, competitive advantages, and earnings growth.
Broadcom's performance data shows solid sales trends and a strong operating cash flow margin ratio, and the source of this cash flow is, above all, its strong operating margin.

Riding the AI trend, Broadcom has the technology sought after by many mega-tech companies, and has turned its strengths into revenue, giving the impression that it has no enemies as far as the eye can see.

The VMware acquisition is very costly, but by the time these investments are actually reflected in the bottom line, we expect to see even greater growth.

In the course of our analysis, we were reminded that Broadcom is a superb company.
Personally, I am also very pleased with the stock split and will make sure to include it in my portfolio.