Track market-moving stories before they get noisy

Key Takeaways Broadcom leads on scale, diversification, revenue visibility and a lower forward sales valuation.AI semiconductor bookings topped $30B, with major customer commitments extending through 2028.Cerebras posted 94% revenue growth but remains unprofitable, concentrated and capital-intensive. Cerebras Systems (CBRS - Free Report) and Broadcom (AVGO - Free Report) are beneficiaries of the AI infrastructure boom. Cerebras develops proprietary AI processors and complete AI computing systems, while Broadcom is a diversified semiconductor company with a dominant position in custom AI accelerators (XPUs), networking silicon and infrastructure software.

So, Cerebras or Broadcom, which has an edge now?

The Case for CBRS StockCerebras is a high-growth, specialized AI-compute company focused on wafer-scale processors and ultra-fast inference. The company’s differentiated wafer-scale architecture delivers inference speeds more than an order of magnitude faster than conventional GPUs for certain workloads. Partnerships with OpenAI and Amazon Web Services (AWS) further validate the company’s technology and expand its long-term growth opportunity. CBRS delivered impressive first-quarter 2026 growth with revenues surging 94% year over year to $193.4 million, driven by a 59% increase in hardware revenues and a 178% jump in cloud and other services revenues.

Cerebras’ partnerships with OpenAI and AWS are important competitive endorsements. The company’s OpenAI agreement covers 750 megawatts of inference capacity and is valued at more than $20 billion over several years. The AWS partnership could broaden access to enterprise customers by deploying Cerebras systems within AWS data centers. Nevertheless, CBRS remains dependent on a relatively limited group of customers, including OpenAI, G42, MBZUAI and AWS, which is a concern for investors.

However, Cerebras is not yet profitable and is expected to suffer from higher spending. The company reported a GAAP operating loss of $15 million and a net loss of $14 million in the first quarter of 2026. Although CBRS’ core operating loss narrowed to $3.5 million, it expects profitability to deteriorate as it invests heavily in data-center infrastructure. For the second quarter of 2026, Cerebras expects gross margin to decline to 36-38% in the second quarter from 47% in the first quarter due to rented infrastructure and accelerated cloud-capacity deployment.

The Case for AVGO StockBroadcom has been benefiting from rising AI revenues, driven by strong demand for XPUs despite lower margins on the chips that are hurting the revenue mix. AI semiconductor revenues reached a record $10.8 billion in the fiscal second quarter, suggesting a 143% year-over-year surge. Management expects it to rise to $16 billion in the fiscal third quarter, indicating more than 200% year-over-year growth.

AVGO management disclosed that AI semiconductor bookings exceeded $30 billion during the fiscal second quarter, nearly three times quarterly AI shipments. CEO Hock Tan stated that visibility now extends through 2028, supported by commitments from major customers including Google, OpenAI, Anthropic and Meta Platforms. Remaining Performance Obligations reached $164.6 billion, including commitments under new custom AI accelerator contracts. These agreements provide exceptional long-term revenue visibility.

Broadcom is not only supplying custom AI accelerators but also dominates AI networking with Tomahawk 6 Ethernet switches, Jericho fabric solutions, co-packaged optics and industry-leading SerDes technology. Networking represented almost 40% of AI semiconductor revenues in the fiscal second quarter, expanding the company's content per AI cluster.

However, Broadcom has guided for the gross margin to decline to 74% in the third quarter of fiscal 2026 from 77.1% in the fiscal second quarter due to a greater mix of lower-margin AI semiconductor revenues, raising concerns that profitability may not scale as quickly as revenues. AVGO expects its consolidated operating margin to remain around 67% in the fiscal third quarter despite a significant increase in the semiconductor revenue mix.

AVGO’s Earnings Estimate Revisions Go North, CBRS Loss ImprovesThe Zacks Consensus Estimate for AVGO’s fiscal 2026 earnings is pegged at $11.74 per share, up by a penny over the past 30 days, indicating a 72.14% increase over 2025’s reported figure.
 

The consensus mark for Cerebras’ 2026 loss has improved from $1.14 per share to 89 cents per share over the past 30 days.

AVGO and CBRS’ Performance, Valuation DetailsBroadcom shares have outperformed Cerebras in the past month. While AVGO shares have returned 3.9%, CBRS has jumped 15.1%.

AVGO vs. CBRS Stock Performance
Image Source: Zacks Investment Research

Both Broadcom and Cerebras are overvalued, as suggested by the Value Score of D.

In terms of forward 12-month price/sales, Broadcom shares are trading at 12.14X, lower than Cerebras’ 24.62X.

AVGO and CBRS Valuation
Image Source: Zacks Investment Research

ConclusionBroadcom appears to be the stronger choice for investors seeking a more balanced risk-reward profile. While Cerebras offers compelling long-term upside through its differentiated AI architecture and high-growth partnerships, its business remains concentrated, capital intensive and unprofitable. Broadcom, by contrast, combines explosive AI growth with a diversified business model, strong cash generation, unmatched customer commitments extending through 2028 and a more reasonable valuation relative to Cerebras. Although margin pressure from AI chip mix remains a near-term headwind, Broadcom's scale, broad AI portfolio and long-term revenue visibility make it the more attractive AI infrastructure investment at current levels.

Broadcom currently carries a Zacks Rank #2 (Buy), while Cerebras has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Posted by Defense World Staff on Jul 22nd, 2026

Aviance Capital Partners LLC reduced its stake in shares of Broadcom Inc. (NASDAQ:AVGO – Free Report) by 2.8% in the first quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 102,813 shares of the semiconductor manufacturer’s stock after selling 2,934 shares during the period. Broadcom comprises 3.7% of Aviance Capital Partners LLC’s investment portfolio, making the stock its 4th biggest position. Aviance Capital Partners LLC’s holdings in Broadcom were worth $31,822,000 as of its most recent filing with the Securities & Exchange Commission.

Other large investors also recently added to or reduced their stakes in the company. Brighton Jones LLC boosted its holdings in shares of Broadcom by 21.8% in the fourth quarter. Brighton Jones LLC now owns 29,683 shares of the semiconductor manufacturer’s stock worth $6,882,000 after acquiring an additional 5,322 shares during the period. Revolve Wealth Partners LLC lifted its holdings in shares of Broadcom by 10.4% in the fourth quarter. Revolve Wealth Partners LLC now owns 7,997 shares of the semiconductor manufacturer’s stock worth $1,854,000 after buying an additional 756 shares in the last quarter. United Bank boosted its position in shares of Broadcom by 76.5% in the first quarter. United Bank now owns 2,339 shares of the semiconductor manufacturer’s stock valued at $392,000 after acquiring an additional 1,014 shares during the period. Sivia Capital Partners LLC boosted its position in shares of Broadcom by 10.1% in the second quarter. Sivia Capital Partners LLC now owns 12,693 shares of the semiconductor manufacturer’s stock valued at $3,499,000 after acquiring an additional 1,160 shares during the period. Finally, Capital & Planning LLC grew its stake in Broadcom by 10.5% during the second quarter. Capital & Planning LLC now owns 3,983 shares of the semiconductor manufacturer’s stock valued at $1,098,000 after acquiring an additional 378 shares in the last quarter. Hedge funds and other institutional investors own 76.43% of the company’s stock.

Insider Transactions at Broadcom In other Broadcom news, Director Justine Page sold 1,602 shares of the firm’s stock in a transaction on Monday, June 29th. The stock was sold at an average price of $373.86, for a total transaction of $598,923.72. Following the completion of the transaction, the director owned 17,426 shares of the company’s stock, valued at approximately $6,514,884.36. This trade represents a 8.42% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Mark David Brazeal sold 25,000 shares of the business’s stock in a transaction on Friday, July 10th. The shares were sold at an average price of $401.33, for a total transaction of $10,033,250.00. Following the sale, the insider owned 194,989 shares in the company, valued at approximately $78,254,935.37. This trade represents a 11.36% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 61,644 shares of company stock valued at $24,016,214 in the last three months. Company insiders own 1.90% of the company’s stock.

Key Broadcom News Here are the key news stories impacting Broadcom this week:

Positive Sentiment: UBS said the recent momentum unwind in semiconductors may be nearing its end, which could allow investors to rebuild positions in names like Broadcom as forced selling eases. UBS sees Broadcom, Sandisk, Oracle stocks rebounding: here’s why Positive Sentiment: Analysts highlighted Broadcom’s VMware Cloud Foundation momentum, saying the software platform is becoming a larger growth engine as enterprises move private clouds and AI workloads to virtualized environments. VCF is Becoming Broadcom’s Growth Engine: More Upside Ahead? Positive Sentiment: Broadcom benefited from a broader semiconductor rebound, with chip stocks rising as investors bought the dip after the recent selloff and AI-related volatility. 5 Things to Know Before the Stock Market Opens on Tuesday Positive Sentiment: Morgan Stanley continued to frame Broadcom as one of the more attractive AI infrastructure names, citing strong cash generation and favorable risk-reward after the sector pullback. Broadcom stock gains 2% today: here’s why Neutral Sentiment: Broadcom also got a boost from a new Standard Chartered deal to power banking cloud modernization across 54 markets, reinforcing the value of its VMware-based infrastructure software. Broadcom (AVGO) Lands Standard Chartered Deal To Power Banking Cloud In 54 Markets Negative Sentiment: Sentiment remains somewhat pressured by an ITC investigation tied to Netlist’s patent complaint, which pulled Broadcom into broader regulatory noise around Samsung memory products and customers. Is Broadcom (AVGO) Still Undervalued As Netlist Patent Claims Test Sentiment? Negative Sentiment: Some headlines also noted that an AI-focused trading model sold Broadcom after its expected return profile weakened, reflecting lingering caution after the recent tech selloff. Claude AI Sells Broadcom (AVGO) Stock Wall Street Analysts Forecast Growth AVGO has been the topic of a number of analyst reports. Truist Financial upped their target price on shares of Broadcom from $545.00 to $550.00 and gave the stock a “buy” rating in a report on Thursday, June 4th. Royal Bank Of Canada raised their price target on shares of Broadcom from $360.00 to $400.00 and gave the company a “sector perform” rating in a report on Thursday, June 4th. Zacks Research cut shares of Broadcom from a “strong-buy” rating to a “hold” rating in a report on Thursday, May 21st. Jefferies Financial Group set a $550.00 price target on shares of Broadcom and gave the stock a “buy” rating in a report on Thursday, June 4th. Finally, KeyCorp reissued an “overweight” rating and set a $575.00 price objective (up from $500.00) on shares of Broadcom in a research note on Thursday, June 4th. One research analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $493.24.

Read Our Latest Research Report on Broadcom

Broadcom Stock Up 2.2% Shares of AVGO opened at $386.50 on Wednesday. The firm has a market cap of $1.84 trillion, a P/E ratio of 64.42, a P/E/G ratio of 0.66 and a beta of 1.45. The stock has a 50 day simple moving average of $399.63 and a two-hundred day simple moving average of $365.90. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. Broadcom Inc. has a 1 year low of $273.00 and a 1 year high of $495.00.

Broadcom (NASDAQ:AVGO – Get Free Report) last posted its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, topping the consensus estimate of $2.40 by $0.04. The firm had revenue of $22.19 billion for the quarter, compared to the consensus estimate of $22.13 billion. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The business’s revenue was up 47.9% compared to the same quarter last year. During the same period last year, the firm posted $1.58 earnings per share. On average, analysts forecast that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Dividend Announcement The company also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were paid a $0.65 dividend. This represents a $2.60 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend was Monday, June 22nd. Broadcom’s dividend payout ratio is presently 43.33%.

Broadcom Profile (Free Report)

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company’s semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom’s portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.

Further Reading Five stocks we like better than Broadcom Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible

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Posted by Defense World Staff on Jul 22nd, 2026

California Public Employees Retirement System trimmed its stake in Broadcom Inc. (NASDAQ:AVGO – Free Report) by 2.4% during the first quarter, according to its most recent disclosure with the SEC. The fund owned 13,291,551 shares of the semiconductor manufacturer’s stock after selling 324,634 shares during the quarter. Broadcom makes up about 2.5% of California Public Employees Retirement System’s investment portfolio, making the stock its 7th largest holding. California Public Employees Retirement System owned about 0.28% of Broadcom worth $4,113,868,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently modified their holdings of the company. ROSS JOHNSON & Associates LLC grew its position in Broadcom by 1,320.0% in the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock worth $25,000 after purchasing an additional 66 shares during the last quarter. SWAN Capital LLC increased its stake in shares of Broadcom by 261.9% in the fourth quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock valued at $26,000 after purchasing an additional 55 shares during the period. Networth Advisors LLC raised its holdings in shares of Broadcom by 546.2% during the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock valued at $26,000 after buying an additional 71 shares during the last quarter. Nvest Wealth Strategies Inc. bought a new stake in shares of Broadcom during the fourth quarter valued at approximately $33,000. Finally, Family CFO Inc acquired a new position in shares of Broadcom during the fourth quarter worth approximately $35,000. Institutional investors and hedge funds own 76.43% of the company’s stock.

Analysts Set New Price Targets A number of equities analysts recently issued reports on the company. Rosenblatt Securities reissued a “buy” rating and issued a $500.00 price objective on shares of Broadcom in a report on Thursday, June 4th. Morgan Stanley set a $502.00 target price on Broadcom and gave the company an “overweight” rating in a research note on Thursday, June 4th. Bank of America boosted their price target on Broadcom from $450.00 to $530.00 and gave the stock a “buy” rating in a research report on Thursday, June 4th. Zacks Research lowered Broadcom from a “strong-buy” rating to a “hold” rating in a research report on Thursday, May 21st. Finally, Erste Group Bank reissued a “hold” rating on shares of Broadcom in a research note on Tuesday, July 7th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $493.24.

View Our Latest Stock Report on Broadcom

Insider Transactions at Broadcom In other Broadcom news, insider Mark David Brazeal sold 25,000 shares of the company’s stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $401.33, for a total value of $10,033,250.00. Following the completion of the sale, the insider directly owned 194,989 shares of the company’s stock, valued at approximately $78,254,935.37. This represents a 11.36% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Justine Page sold 1,602 shares of the firm’s stock in a transaction dated Monday, June 29th. The shares were sold at an average price of $373.86, for a total transaction of $598,923.72. Following the transaction, the director owned 17,426 shares of the company’s stock, valued at approximately $6,514,884.36. This trade represents a 8.42% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 61,644 shares of company stock valued at $24,016,214 in the last three months. 1.90% of the stock is currently owned by insiders.

Broadcom Stock Performance AVGO opened at $386.50 on Wednesday. The business has a 50 day moving average price of $399.63 and a two-hundred day moving average price of $365.90. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. The company has a market capitalization of $1.84 trillion, a price-to-earnings ratio of 64.42, a price-to-earnings-growth ratio of 0.66 and a beta of 1.45. Broadcom Inc. has a 1-year low of $273.00 and a 1-year high of $495.00.

Broadcom (NASDAQ:AVGO – Get Free Report) last issued its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.40 by $0.04. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The company had revenue of $22.19 billion for the quarter, compared to analysts’ expectations of $22.13 billion. During the same period last year, the firm earned $1.58 EPS. The firm’s revenue for the quarter was up 47.9% on a year-over-year basis. Research analysts predict that Broadcom Inc. will post 10.24 EPS for the current fiscal year.

Broadcom Announces Dividend The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were issued a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend was Monday, June 22nd. Broadcom’s payout ratio is presently 43.33%.

Key Broadcom News Here are the key news stories impacting Broadcom this week:

Positive Sentiment: UBS said the recent momentum unwind in semiconductors may be nearing its end, which could allow investors to rebuild positions in names like Broadcom as forced selling eases. UBS sees Broadcom, Sandisk, Oracle stocks rebounding: here’s why Positive Sentiment: Analysts highlighted Broadcom’s VMware Cloud Foundation momentum, saying the software platform is becoming a larger growth engine as enterprises move private clouds and AI workloads to virtualized environments. VCF is Becoming Broadcom’s Growth Engine: More Upside Ahead? Positive Sentiment: Broadcom benefited from a broader semiconductor rebound, with chip stocks rising as investors bought the dip after the recent selloff and AI-related volatility. 5 Things to Know Before the Stock Market Opens on Tuesday Positive Sentiment: Morgan Stanley continued to frame Broadcom as one of the more attractive AI infrastructure names, citing strong cash generation and favorable risk-reward after the sector pullback. Broadcom stock gains 2% today: here’s why Neutral Sentiment: Broadcom also got a boost from a new Standard Chartered deal to power banking cloud modernization across 54 markets, reinforcing the value of its VMware-based infrastructure software. Broadcom (AVGO) Lands Standard Chartered Deal To Power Banking Cloud In 54 Markets Negative Sentiment: Sentiment remains somewhat pressured by an ITC investigation tied to Netlist’s patent complaint, which pulled Broadcom into broader regulatory noise around Samsung memory products and customers. Is Broadcom (AVGO) Still Undervalued As Netlist Patent Claims Test Sentiment? Negative Sentiment: Some headlines also noted that an AI-focused trading model sold Broadcom after its expected return profile weakened, reflecting lingering caution after the recent tech selloff. Claude AI Sells Broadcom (AVGO) Stock Broadcom Profile (Free Report)

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company’s semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom’s portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.

Further Reading Five stocks we like better than Broadcom Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible Want to see what other hedge funds are holding AVGO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Broadcom Inc. (NASDAQ:AVGO – Free Report).

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Key Takeaways Micron, Texas Instruments, NVIDIA and Broadcom stand out for strong AI exposure and cash generation.Micron posted $29.9B in trailing free cash flow as HBM demand stayed sold out through calendar year 2026.Texas Instruments, Broadcom and NVIDIA generated trailing 12M FCF of $4.4B, $32.8B and $119B, respectively. The stock market has remained highly volatile throughout 2026 as investors continue to deal with a challenging macroeconomic backdrop. Geopolitical tensions, ongoing wars, tariff-related uncertainties, elevated fuel prices, persistent inflation and still-high interest rates have created a difficult environment for equities.

Semiconductor stocks, despite being at the center of the artificial intelligence (AI) revolution, have also witnessed sharp swings as investors worry about whether massive AI infrastructure spending by hyperscalers will generate returns quickly enough to justify current investment levels.

During such uncertain periods, companies with strong cash-generating abilities tend to stand out. Robust free cash flow provides businesses with the financial flexibility to continue investing in research and development, expand manufacturing capacity, repurchase shares, raise dividends and pursue strategic acquisitions without relying heavily on external financing. It also creates a cushion against economic slowdowns and tighter credit conditions.

The AI boom has dramatically strengthened the financial position of several leading chipmakers. Surging demand for AI accelerators, high-bandwidth memory (HBM), networking chips and data center infrastructure has fueled record revenues and profitability. As a result, these companies are producing billions of dollars in cash every quarter, reinforcing their competitive advantages while rewarding shareholders.

Against this backdrop, investors looking to navigate ongoing market uncertainties should focus on financially strong AI chip leaders. Micron Technology, Inc. (MU - Free Report) , Texas Instruments Incorporated (TXN - Free Report) , NVIDIA Corporation (NVDA - Free Report) and Broadcom Inc. (AVGO - Free Report) combine powerful AI-driven growth opportunities with impressive cash generation, making them well-positioned to outperform when market sentiment improves. These stocks have a favorable combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or #2 (Buy), offering solid investment opportunities.

Our PicksMicron Technology has emerged as one of the biggest beneficiaries of the AI infrastructure buildout. The rapid adoption of generative AI has significantly increased demand for HBM and high-capacity DRAM, where Micron Technology has strengthened its technology leadership. Its HBM products have been sold out through calendar year 2026, reflecting exceptionally strong customer demand from leading AI accelerator manufacturers.

The company has also benefited from improving pricing across the broader memory market following the industry's recovery from the previous downturn. Higher average selling prices, disciplined industry supply and increasing AI server deployments have driven strong revenue growth and expanding margins. In the last reported results for the third quarter of fiscal 2026, Micron Technology’s revenues and non-GAAP earnings per share (EPS) surged 346% and 1,215%, respectively, year over year.

This massive growth has translated into substantial free cash flow generation, enabling Micron Technology to increase manufacturing investments while returning substantial cash to shareholders. The company generated adjusted free cash flow of $18.3 billion in the third quarter and $29.9 billion in the trailing 12 months.

Currently, Micron Technology sports a Zacks Rank #1 and has a Growth Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

Texas Instruments’ analog and embedded semiconductor portfolio makes it a critical supplier across industrial, automotive and communications markets. AI-enabled factories, robotics, electric vehicles and intelligent power systems all require the company's analog chips and embedded processors.

Texas Instruments has consistently generated strong operating cash flows through business cycles due to its diversified customer base, long product lifecycles and efficient manufacturing strategy. The company's ownership of internal manufacturing facilities provides better cost control while supporting long-term profitability.

In the first quarter of 2026, Texas Instruments’ revenues and non-GAAP EPS jumped 19% and 31%, respectively, year over year. The company generated $1.4 billion of free cash flow in the first quarter and $4.4 billion in the trailing 12 months.

Texas Instruments sports a Zacks Rank #1 at present and has a Growth Score of B.

NVIDIA remains the undisputed leader in AI computing. Its graphics processing units (GPUs) have become the standard platform for training and deploying large language models, making the company the biggest beneficiary of surging AI infrastructure spending by hyperscalers, cloud providers and enterprises.

The company's Blackwell platform has attracted extraordinary customer demand as organizations race to build next-generation AI data centers. Beyond GPUs, NVIDIA continues expanding its ecosystem through networking, AI software, enterprise platforms and accelerated computing solutions, creating multiple long-term growth engines. The company’s first-quarter fiscal 2027 revenues surged 85% year over year, while non-GAAP EPS jumped 140%.

Explosive revenue growth has resulted in enormous free cash flow generation, allowing NVIDIA to invest heavily in research, expand product development and return significant capital to shareholders. The company generated free cash flow of $48.6 billion in the first quarter of fiscal 2026 and approximately $119 billion in the trailing 12 months.

NVIDIA carries a Zacks Rank #2 at present and has a Growth Score of A.

Broadcom has successfully transformed itself into one of the most diversified AI infrastructure companies. While its custom AI accelerators have become a major growth driver, the company also benefits from strong demand for AI networking chips that help connect thousands of GPUs inside massive data centers.

Its custom silicon business continues gaining momentum as several hyperscale cloud companies develop proprietary AI chips to complement commercially available accelerators. This creates a long runway for sustained semiconductor revenue growth for the company. In the second quarter of fiscal 2026, revenues and non-GAAP EPS surged 48% and 54%, respectively, year over year.

Broadcom's software business, strengthened by the VMware acquisition, further diversifies cash flows while generating recurring revenues. The combination of semiconductor leadership and enterprise software has significantly boosted free cash flow generation. The company generated free cash flow of $10.3 billion in the second quarter of fiscal 2026 and approximately $32.8 billion in the trailing 12 months.

Broadcom carries a Zacks Rank #2 at present and has a Growth Score of B.

Financiere des Professionnels Fonds d investissement inc. boosted its position in Broadcom Inc. (NASDAQ:AVGO – Free Report) by 206.9% in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 76,310 shares of the semiconductor manufacturer’s stock after buying an additional 51,445 shares during the period. Broadcom makes up approximately 1.4% of Financiere des Professionnels Fonds d investissement inc.’s portfolio, making the stock its 15th biggest position. Financiere des Professionnels Fonds d investissement inc.’s holdings in Broadcom were worth $23,619,000 at the end of the most recent reporting period.

A number of other institutional investors have also added to or reduced their stakes in the company. Vanguard Group Inc. increased its holdings in shares of Broadcom by 0.8% during the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer’s stock valued at $167,064,997,000 after acquiring an additional 3,919,715 shares in the last quarter. State Street Corp raised its position in shares of Broadcom by 2.7% during the fourth quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer’s stock worth $65,788,194,000 after purchasing an additional 5,040,801 shares during the period. Geode Capital Management LLC lifted its holdings in shares of Broadcom by 1.4% in the 4th quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer’s stock worth $38,396,634,000 after purchasing an additional 1,548,699 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its holdings in shares of Broadcom by 3.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 85,546,083 shares of the semiconductor manufacturer’s stock worth $29,607,500,000 after purchasing an additional 2,491,644 shares in the last quarter. Finally, Norges Bank acquired a new stake in Broadcom in the 4th quarter valued at $24,252,196,000. 76.43% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth A number of analysts have commented on AVGO shares. JPMorgan Chase & Co. boosted their price target on shares of Broadcom from $500.00 to $580.00 and gave the company an “overweight” rating in a research note on Thursday, June 4th. Erste Group Bank reaffirmed a “hold” rating on shares of Broadcom in a research note on Tuesday, July 7th. Benchmark lifted their price objective on shares of Broadcom from $485.00 to $545.00 and gave the company a “buy” rating in a report on Thursday, June 4th. Citigroup reiterated a “buy” rating on shares of Broadcom in a report on Thursday, June 4th. Finally, Royal Bank Of Canada boosted their target price on shares of Broadcom from $360.00 to $400.00 and gave the stock a “sector perform” rating in a research report on Thursday, June 4th. One analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $493.24.

View Our Latest Stock Report on Broadcom

Broadcom Stock Performance Shares of Broadcom stock opened at $370.83 on Monday. The stock has a fifty day simple moving average of $401.29 and a 200 day simple moving average of $365.42. Broadcom Inc. has a 12-month low of $273.00 and a 12-month high of $495.00. The company has a market capitalization of $1.76 trillion, a P/E ratio of 61.81, a price-to-earnings-growth ratio of 0.65 and a beta of 1.45. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71.

Broadcom (NASDAQ:AVGO – Get Free Report) last released its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, beating analysts’ consensus estimates of $2.40 by $0.04. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The business had revenue of $22.19 billion during the quarter, compared to analyst estimates of $22.13 billion. During the same period in the prior year, the firm posted $1.58 EPS. Broadcom’s quarterly revenue was up 47.9% compared to the same quarter last year. On average, sell-side analysts anticipate that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Announces Dividend The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd were issued a $0.65 dividend. The ex-dividend date was Monday, June 22nd. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. Broadcom’s dividend payout ratio is currently 43.33%.

More Broadcom News Here are the key news stories impacting Broadcom this week:

Positive Sentiment: Standard Chartered chose Broadcom to support a long-term modernization of its global banking infrastructure, underscoring Broadcom’s role in secure private-cloud and enterprise networking solutions. Standard Chartered Selects Broadcom to Deliver Secure, Always-On Banking Services at Global Scale Positive Sentiment: Wall Street commentary continues to describe Broadcom as a core AI beneficiary, and some analysts have raised price targets even after the stock pullback. As Shares Fall, Analyst Are Boosting Their Broadcom Price Targets Neutral Sentiment: Broadcom remains a major talking point in AI-focused market coverage, with some investors viewing it as an indicator for the broader market and semiconductor cycle. Jim Cramer Says Broadcom Will Tell You When the Market Is About to Turn Negative Sentiment: Broadcom is facing renewed skepticism around valuation, with one report asking whether the AI story has made the stock too expensive. Has Broadcom Become Too Expensive for Its AI Story? Negative Sentiment: The stock is also being hit by a broader selloff in semiconductor names as investors rotate away from AI-capex winners and worry about a slowdown in chip spending. Marvell Drops 8% as AI Capex Slowdown Fears Weigh on Chips; Broadcom, AMD, and Intel Slide Negative Sentiment: Broadcom is also dealing with regulatory uncertainty after reports said it faces an EU antitrust review tied to VMware licensing changes. Broadcom (AVGO) Faces EU Antitrust Review Over VMware Licensing Changes Insider Activity In related news, Director Gayla J. Delly sold 1,890 shares of the business’s stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total transaction of $728,368.20. Following the transaction, the director directly owned 31,326 shares in the company, valued at approximately $12,072,413.88. The trade was a 5.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Justine Page sold 1,602 shares of the company’s stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $373.86, for a total transaction of $598,923.72. Following the completion of the sale, the director directly owned 17,426 shares of the company’s stock, valued at $6,514,884.36. The trade was a 8.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 61,644 shares of company stock worth $24,016,214. Company insiders own 1.90% of the company’s stock.

Broadcom Profile (Free Report)

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company’s semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom’s portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.

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Posted by Defense World Staff on Jul 20th, 2026

Gallagher Capital Advisors LLC lifted its position in shares of Broadcom Inc. (NASDAQ:AVGO – Free Report) by 153.4% in the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 4,756 shares of the semiconductor manufacturer’s stock after buying an additional 2,879 shares during the period. Gallagher Capital Advisors LLC’s holdings in Broadcom were worth $1,472,000 as of its most recent SEC filing.

Other large investors have also made changes to their positions in the company. ROSS JOHNSON & Associates LLC lifted its stake in shares of Broadcom by 1,320.0% in the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock valued at $25,000 after purchasing an additional 66 shares in the last quarter. Networth Advisors LLC grew its holdings in shares of Broadcom by 546.2% during the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock worth $26,000 after purchasing an additional 71 shares during the period. SWAN Capital LLC increased its position in Broadcom by 261.9% during the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock worth $26,000 after purchasing an additional 55 shares in the last quarter. Nvest Wealth Strategies Inc. acquired a new stake in Broadcom during the 4th quarter worth approximately $33,000. Finally, Family CFO Inc purchased a new position in Broadcom in the fourth quarter valued at approximately $35,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

Broadcom News Roundup Here are the key news stories impacting Broadcom this week:

Positive Sentiment: Standard Chartered chose Broadcom to support a long-term modernization of its global banking infrastructure, underscoring Broadcom’s role in secure private-cloud and enterprise networking solutions. Standard Chartered Selects Broadcom to Deliver Secure, Always-On Banking Services at Global Scale Positive Sentiment: Wall Street commentary continues to describe Broadcom as a core AI beneficiary, and some analysts have raised price targets even after the stock pullback. As Shares Fall, Analyst Are Boosting Their Broadcom Price Targets Neutral Sentiment: Broadcom remains a major talking point in AI-focused market coverage, with some investors viewing it as an indicator for the broader market and semiconductor cycle. Jim Cramer Says Broadcom Will Tell You When the Market Is About to Turn Negative Sentiment: Broadcom is facing renewed skepticism around valuation, with one report asking whether the AI story has made the stock too expensive. Has Broadcom Become Too Expensive for Its AI Story? Negative Sentiment: The stock is also being hit by a broader selloff in semiconductor names as investors rotate away from AI-capex winners and worry about a slowdown in chip spending. Marvell Drops 8% as AI Capex Slowdown Fears Weigh on Chips; Broadcom, AMD, and Intel Slide Negative Sentiment: Broadcom is also dealing with regulatory uncertainty after reports said it faces an EU antitrust review tied to VMware licensing changes. Broadcom (AVGO) Faces EU Antitrust Review Over VMware Licensing Changes Broadcom Stock Performance Broadcom stock opened at $370.83 on Monday. Broadcom Inc. has a 52 week low of $273.00 and a 52 week high of $495.00. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71. The stock has a market cap of $1.76 trillion, a P/E ratio of 61.81, a price-to-earnings-growth ratio of 0.65 and a beta of 1.45. The stock has a 50 day moving average of $401.29 and a 200-day moving average of $365.42.

Broadcom (NASDAQ:AVGO – Get Free Report) last posted its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, topping analysts’ consensus estimates of $2.40 by $0.04. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The business had revenue of $22.19 billion during the quarter, compared to the consensus estimate of $22.13 billion. During the same period last year, the firm earned $1.58 earnings per share. The company’s revenue for the quarter was up 47.9% compared to the same quarter last year. On average, analysts expect that Broadcom Inc. will post 10.24 EPS for the current fiscal year.

Broadcom Dividend Announcement The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were issued a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date was Monday, June 22nd. Broadcom’s payout ratio is presently 43.33%.

Insider Buying and Selling at Broadcom In other Broadcom news, Director Gayla J. Delly sold 1,890 shares of the company’s stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total transaction of $728,368.20. Following the completion of the sale, the director directly owned 31,326 shares of the company’s stock, valued at approximately $12,072,413.88. This represents a 5.69% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Harry L. You acquired 1,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 11th. The stock was purchased at an average cost of $373.57 per share, with a total value of $373,570.00. Following the purchase, the director directly owned 38,466 shares in the company, valued at approximately $14,369,743.62. This trade represents a 2.67% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have sold 61,644 shares of company stock valued at $24,016,214 over the last quarter. Company insiders own 1.90% of the company’s stock.

Analyst Ratings Changes A number of research analysts have weighed in on the stock. TD Cowen reaffirmed a “buy” rating and set a $500.00 price target on shares of Broadcom in a research report on Thursday, June 4th. Royal Bank Of Canada increased their price objective on shares of Broadcom from $360.00 to $400.00 and gave the stock a “sector perform” rating in a research report on Thursday, June 4th. Oppenheimer reissued an “outperform” rating and issued a $535.00 target price (up from $450.00) on shares of Broadcom in a research note on Thursday, June 4th. Rosenblatt Securities restated a “buy” rating and set a $500.00 target price on shares of Broadcom in a report on Thursday, June 4th. Finally, Evercore reaffirmed an “outperform” rating and set a $582.00 price target on shares of Broadcom in a research report on Tuesday, May 19th. One research analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $493.24.

Check Out Our Latest Report on AVGO

About Broadcom (Free Report)

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company’s semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom’s portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.

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Chasing yield is a rookie mistake. The dividend stocks that actually build wealth are the ones raising payouts fast enough to outrun inflation, fund reinvestment and turn a modest starting yield into a serious income stream a decade later. That is the lens for July 2026: Three sub-3% yielders whose dividend growth rates make the compounding case, regardless of the modest headline yields.

Each of the three names below has a concrete catalyst behind the raise: AI-driven earnings acceleration at Microsoft, a payments network compounding double-digit revenue growth at Visa, and Broadcom’s post-VMware cash flow explosion. For dividend-growth investors focused on total return, the compounding math is the entire thesis. (For readers building the income side of the portfolio, our Never Touch the Principal research goes deeper on the dividend-growth playbook.)

Microsoft (MSFT) Microsoft (NASDAQ:MSFT | MSFT Price Prediction) is the AI dividend grower hiding in plain sight. The company raised its quarterly payout from 83 cents to 91 cents starting Q4 2025, following a multi-year cadence of September raises: 62 cents to 68 cents in 2022, 68 cents to 75 cents in 2023, 75 cents to 83 cents in 2024 and now 91 cents. The forward annualized dividend stands at $3.64, with a current yield of just 0.93%. Small number, but the growth trajectory is the point.

The engine behind the raises is the AI and cloud franchise. Fiscal Q3 2026 delivered EPS of $4.27 versus $4.09 estimated, on revenue of $82.89 billion, up 18.3% year over year. Intelligent Cloud grew 30%, Azure grew 40%, and CEO Satya Nadella told investors, “Our AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year.” Commercial remaining performance obligations nearly doubled to $627 billion. That backlog gives management the visibility to keep the dividend ladder going.

Risk: The stock has been rerated hard, down 17.17% year to date and 23.44% over the past year, while CapEx hit $30.88 billion in the quarter, up 84%. Free cash flow is being consumed by AI buildout, and the payoff timeline is not guaranteed. At roughly 23 times trailing earnings, though, the valuation reset has done a lot of work.

Visa (V) Visa (NYSE:V) is the cleanest dividend-growth story of the three. The board hiked the quarterly payout from 59 cents to 67 cents in October 2025, a 14% increase. Zoom out and the compounding is striking: Visa paid 30 cents per quarter in 2020 and now pays $0.67, with a forward annualized rate of $2.68.

The fundamentals justify the pace. Fiscal Q1 2026 delivered EPS of $3.31 versus $3.10 expected, a 6.77% beat, on revenue of $10.90 billion, up 14.6% year over year. Payments volume rose 8% in constant dollars, cross-border volume excluding intra-Europe grew 11% and data processing revenue climbed 17%. CEO Ryan McInerney framed the strategy this way: “Our purposeful investments in our Visa as a Service stack continue to position us as a payments hyperscaler.” Buybacks are aggressive too, with $21.1 billion remaining on the repurchase authorization after Q1’s $3.8 billion in repurchases.

Analysts remain constructive, with eight Strong Buy ratings, 29 Buy ratings and three Hold ratings alongside a 12-month price target of $401.16 against the current price of $358.61.

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Risk: Visa took a $707 million interchange MDL litigation provision in Q1. The merchant-fee legal overhang is not going away, and any adverse ruling could compress the network’s most profitable revenue line.

Broadcom (AVGO) Broadcom (NASDAQ:AVGO) is the highest-octane pick of the three. On a split-adjusted basis, the quarterly dividend moved from 53 cents in Q3 2024 to 59 cents through 2025 to 65 cents in 2026. The shares are up 41% over the past year and a staggering 775.99% over five years, which explains the sub-1% yield. Investors are being paid in capital appreciation while the dividend compounds underneath.

Q2 fiscal 2026 was a blockbuster. Revenue reached $22.19 billion, up 47.9% year over year, and EPS came in at $2.44 versus $2.40 estimated, extending the streak to 8 consecutive beats. AI semiconductor revenue alone hit $10.8 billion, up 143% year over year. CEO Hock Tan set the bar higher: “The momentum continues and in Q3 we expect semiconductor revenue from AI to grow over 200% year-over-year to $16.0 billion.” Free cash flow of $10.26 billion, up 60%, is what funds the dividend runway.

The industry backdrop supports the trajectory. Global semiconductor revenue reached $298.5 billion in Q1 2026, a 79.2% year-over-year increase.

Risk: Broadcom trades at roughly 67 times trailing earnings, customer concentration among a handful of hyperscalers is real, and the VMware acquisition left a significant debt load. A hyperscaler CapEx pause would hit hardest here.

The Bottom Line on Dividend Growth All three names yield under 1%, so the case rests entirely on the rate of raise and the earnings power behind it. Microsoft’s Azure engine, Visa’s payments network, and Broadcom’s AI silicon each fund a different flavor of dividend compounding. For long-duration portfolios, that is where the real income lives and what makes the compounding case compelling right now.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

Blackhawk Capital Partners LLC increased its holdings in shares of Broadcom Inc. (NASDAQ:AVGO – Free Report) by 37.8% during the first quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 11,404 shares of the semiconductor manufacturer’s stock after acquiring an additional 3,130 shares during the period. Broadcom makes up about 1.3% of Blackhawk Capital Partners LLC’s portfolio, making the stock its 17th largest holding. Blackhawk Capital Partners LLC’s holdings in Broadcom were worth $3,530,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Fullerton Advisors LLC grew its holdings in Broadcom by 1.3% in the first quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer’s stock valued at $616,000 after purchasing an additional 25 shares during the period. NORTHSTAR ASSET MANAGEMENT Co increased its position in shares of Broadcom by 0.5% in the first quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer’s stock valued at $1,656,000 after buying an additional 25 shares in the last quarter. RFG Holdings Inc. raised its stake in shares of Broadcom by 0.3% during the 1st quarter. RFG Holdings Inc. now owns 8,499 shares of the semiconductor manufacturer’s stock worth $2,631,000 after buying an additional 26 shares during the period. Yukon Wealth Management Inc. raised its stake in shares of Broadcom by 1.1% during the 1st quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer’s stock worth $774,000 after buying an additional 26 shares during the period. Finally, Capital Planning LLC lifted its position in shares of Broadcom by 0.7% during the 1st quarter. Capital Planning LLC now owns 4,044 shares of the semiconductor manufacturer’s stock valued at $1,252,000 after buying an additional 28 shares in the last quarter. Hedge funds and other institutional investors own 76.43% of the company’s stock.

Key Stories Impacting Broadcom Here are the key news stories impacting Broadcom this week:

Positive Sentiment: Standard Chartered chose Broadcom to support a long-term modernization of its global banking infrastructure, underscoring Broadcom’s role in secure private-cloud and enterprise networking solutions. Standard Chartered Selects Broadcom to Deliver Secure, Always-On Banking Services at Global Scale Positive Sentiment: Wall Street commentary continues to describe Broadcom as a core AI beneficiary, and some analysts have raised price targets even after the stock pullback. As Shares Fall, Analyst Are Boosting Their Broadcom Price Targets Neutral Sentiment: Broadcom remains a major talking point in AI-focused market coverage, with some investors viewing it as an indicator for the broader market and semiconductor cycle. Jim Cramer Says Broadcom Will Tell You When the Market Is About to Turn Negative Sentiment: Broadcom is facing renewed skepticism around valuation, with one report asking whether the AI story has made the stock too expensive. Has Broadcom Become Too Expensive for Its AI Story? Negative Sentiment: The stock is also being hit by a broader selloff in semiconductor names as investors rotate away from AI-capex winners and worry about a slowdown in chip spending. Marvell Drops 8% as AI Capex Slowdown Fears Weigh on Chips; Broadcom, AMD, and Intel Slide Negative Sentiment: Broadcom is also dealing with regulatory uncertainty after reports said it faces an EU antitrust review tied to VMware licensing changes. Broadcom (AVGO) Faces EU Antitrust Review Over VMware Licensing Changes Analysts Set New Price Targets A number of research firms recently issued reports on AVGO. Jefferies Financial Group set a $550.00 price target on shares of Broadcom and gave the company a “buy” rating in a research note on Thursday, June 4th. Dbs Bank upgraded shares of Broadcom to a “moderate buy” rating in a research report on Thursday, June 18th. Bank of America increased their price objective on shares of Broadcom from $450.00 to $530.00 and gave the company a “buy” rating in a report on Thursday, June 4th. Benchmark lifted their target price on shares of Broadcom from $485.00 to $545.00 and gave the company a “buy” rating in a research report on Thursday, June 4th. Finally, Morgan Stanley set a $502.00 target price on shares of Broadcom and gave the stock an “overweight” rating in a research note on Thursday, June 4th. One analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, Broadcom presently has an average rating of “Moderate Buy” and an average price target of $493.24.

Read Our Latest Stock Report on AVGO

Broadcom Stock Performance Shares of NASDAQ:AVGO opened at $370.83 on Friday. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. Broadcom Inc. has a 1 year low of $273.00 and a 1 year high of $495.00. The firm has a market capitalization of $1.76 trillion, a PE ratio of 61.81, a P/E/G ratio of 0.65 and a beta of 1.45. The business’s 50 day moving average price is $401.29 and its 200-day moving average price is $365.31.

Broadcom (NASDAQ:AVGO – Get Free Report) last posted its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, beating the consensus estimate of $2.40 by $0.04. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The firm had revenue of $22.19 billion during the quarter, compared to the consensus estimate of $22.13 billion. During the same period in the prior year, the company earned $1.58 EPS. The firm’s revenue was up 47.9% compared to the same quarter last year. As a group, equities research analysts expect that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Announces Dividend The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were given a dividend of $0.65 per share. The ex-dividend date was Monday, June 22nd. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. Broadcom’s payout ratio is presently 43.33%.

Insider Buying and Selling at Broadcom In other Broadcom news, Director Harry L. You bought 1,000 shares of the firm’s stock in a transaction on Thursday, June 11th. The shares were acquired at an average cost of $373.57 per share, with a total value of $373,570.00. Following the purchase, the director directly owned 38,466 shares of the company’s stock, valued at $14,369,743.62. This trade represents a 2.67% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Mark David Brazeal sold 25,000 shares of the firm’s stock in a transaction that occurred on Friday, July 10th. The stock was sold at an average price of $401.33, for a total transaction of $10,033,250.00. Following the completion of the transaction, the insider directly owned 194,989 shares in the company, valued at $78,254,935.37. This trade represents a 11.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 61,644 shares of company stock valued at $24,016,214. Insiders own 1.90% of the company’s stock.

Broadcom Profile (Free Report)

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company’s semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom’s portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.

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Few companies have ridden the artificial intelligence (AI) infrastructure boom as successfully as Broadcom NASDAQ: AVGO. The tech giant has been a go-to name for investors looking to play the buildout of AI data centers, and its shares are up around 40% over the past year as a result. Every fresh sign of accelerating demand for its custom chips has been met with enthusiasm, and for good reason.

Broadcom Today

$359.88 -14.57 (-3.89%)

As of 09:48 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$273.00▼

$495.00Dividend Yield0.72%

P/E Ratio59.74

Price Target$493.24

Lately, though, that enthusiasm has started to cool in a way that's worth paying attention to. Despite briefly hitting an all-time high after its earnings report last month, the stock has since fallen more than 20% from that peak.

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More tellingly, it's now trading at roughly the same level it was back in November, meaning it has effectively gone nowhere in eight months, even as the company has continued to post exceptionally strong results.

For a stock that's supposed to be one of the AI trade's biggest winners, that's not a great look, and it's forcing investors to confront an uncomfortable question.

The Downgrade That Put Valuation Front and CenterThe clearest sign of the growing unease came last week, when Erste Group downgraded Broadcom to Hold from Buy, citing valuation concerns. The move stands out against a broader Wall Street backdrop that remains bullish overall, with Broadcom carrying a Moderate Buy consensus rating.

The reasoning was blunt: while the firm acknowledged that the company’s margins are expected to remain high, the stock's already lofty valuation reflects much of that positive outlook, leaving limited room for further price appreciation.

That's a critical point, and it goes straight to the heart of the bear case. Broadcom's fundamentals aren't in question. The concern is entirely about how much investors are being asked to pay for them. Right now, the stock is costing around 65 times earnings, considerably higher than, say, the 32 times earnings investors are being asked to pay for NVIDIA NASDAQ: NVDA.

When a stock is priced for perfection, even excellent results can fail to move the needle, because the good news is already baked in. The fact that Broadcom has essentially flatlined since November despite continued strong performance is arguably the market's way of signaling exactly that.

The Bull Case Is Still ThereOverall MarketRank™100th Percentile

Analyst RatingModerate Buy

Upside/Downside36.4% Upside

Short Interest LevelHealthy

Dividend StrengthStrong

News Sentiment1.10 Insider TradingSelling Shares

Proj. Earnings Growth72.17%

See Full Analysis

The thing is, though, for all the valuation hand-wringing, plenty of voices on Wall Street remain firmly in Broadcom's corner. Morgan Stanley, for example, described the company as a "core AI winner,” pointing to the strength of its AI growth trajectory despite recent concerns about valuation and competition.

The team there put much of the weakness down to two things. First, investors have been gravitating toward what they call "growthier" bottleneck stories elsewhere in the AI semiconductor space, leaving Broadcom looking comparatively unloved. Second, and more specifically, there's been growing concern about competition from Taiwan's MediaTek, which could soon start eating into Broadcom's key market share.

However, Morgan Stanley's view is that this fear is overdone. While it acknowledges that MediaTek's growth is real, it expects Broadcom to remain the majority supplier for the likes of Alphabet Inc NASDAQ: GOOGL and describes more bearish scenarios of market share loss as premature.

Still One of AI's Best-Positioned NamesUnderpinning that confidence is a business that remains exceptionally strong. Broadcom has cemented itself at the heart of the custom AI silicon buildout through a series of major partnerships with some of the biggest names in technology, including its deal with Apple NASDAQ: AAPL. These are the kinds of relationships that lock in reliable cash flow and place it at the center of large AI operators' efforts to build bespoke infrastructure for their own workloads.

Its AI revenue is also growing faster than its overall revenue, indicating exactly where the momentum lies. While the margin picture is a little more nuanced than that of a pure chip designer, the direction of travel remains undoubtedly positive.

Where That Leaves InvestorsSo has Broadcom become too expensive for its own AI story? The honest answer is that it depends entirely on what investors think of its growth's durability. The bears, led by Erste Group's downgrade, make a fair point that the valuation already prices in a lot of good news, and the stock's failure to hold onto any of its progress since November lends real weight to that argument.

But the bulls have an equally compelling response. If Broadcom really is the core, structurally advantaged winner in custom AI silicon that it appears to be, with solid market share and many marquee customers, then a period of consolidation after such a strong run may simply be the stock catching its breath before the next leg higher.

For investors weighing it up, the coming quarters and the evidence they bring on whether growth can keep outrunning that demanding valuation will settle the debate.

Should You Invest $1,000 in Broadcom Right Now?Before you consider Broadcom, you'll want to hear this.

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Broadcom (AVGO +1.28%) has performed well over the past 12 months. The company's strong position in the market for custom artificial intelligence (AI) chips is proving to be a massive growth driver. What's more, Broadcom recently announced a deal with Apple (AAPL +4.01%) that arguably strengthens the bull thesis for the stock. Here's what investors need to know.

A long-term deal removes major uncertainty Broadcom has designed and produced chips for Apple's devices for years. But recently, the two companies announced an expanded partnership. Apple committed over $30 billion to Broadcom through 2031, which is expected to lead to the production of 15 billion chips. Tim Cook, Apple's CEO, praised Broadcom's chips, calling them "essential to delivering the incredible performance and connectivity our customers expect."

Image source: The Motley Fool.

This is great news for Broadcom, and not necessarily because of the dollar amount. After all, extended over five years, the $30 billion deal comes out to an average of $6 billion annually. Meanwhile, in the second quarter of its fiscal year 2026, ending on May 3, Broadcom's revenue was $22.2 billion. So, the money Broadcom will get from this deal, while not insignificant, isn't exactly a game changer.

However, there are other dynamics at play that investors should pay attention to. For instance, one of the strongest arguments against Broadcom's bull thesis is customer concentration. According to some estimates, Apple alone accounts for roughly 20% of the company's revenue. What would happen if Apple suddenly stopped buying chips from Broadcom? The company's shares would almost certainly fall off a cliff. But investors no longer have to worry about that, at least for the foreseeable future.

The expanded partnership provides a degree of security that Broadcom lacked before, by reducing the risk of sudden revenue loss from one of the company's biggest customers. And that's great news for the company and its shareholders.

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Why Broadcom stock is a buy Broadcom has signed other deals that provide it with significant revenue visibility over the next few years, including with Meta Platforms (META +3.06%). The chipmaker's revenue and earnings are also growing at a good clip, primarily thanks to its work in custom AI chips. Broadcom's second-quarter revenue of $22.2 billion jumped by 48% year over year, with revenue from its AI semiconductor segment soaring 143%.

The company expects sales growth to accelerate within this unit. Broadcom projected that its AI chip revenue would soar by over 200% year over year during its upcoming quarter. It could be just the beginning. As companies increasingly seek cost-effective alternatives to GPUs (Graphics Processing Units), demand for Broadcom's products should remain strong in the medium term. Broadcom's shares jumped after it announced its expanded deal with Apple, and the stock is up 40% over the past 12 months. But it isn't too late to invest.

A Broadcom logo and a computer motherboard appear in this illustration created on August 25, 2025. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab

CompaniesBRUSSELS, July 14 (Reuters) - The Cloud Infrastructure Services Providers in Europe (CISPE) has joined forces with four other trade groups to ​urge EU antitrust regulators to suspend some business practices of ‌U.S. chipmaker Broadcom (AVGO.O), opens new tab, according to a joint letter seen by Reuters.

CISPE , which has nearly 50 members across Europe and counts Microsoft (MSFT.O), opens new tab and Amazon (AMZN.O), opens new tab as associate ​members, in March asked for an interim measure on its own ​after Broadcom last year revamped its VMware cloud service provider ⁠ecosystem, which it acquired in 2023.

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CISPE's complaint prompted the European ​Commission, which acts as the EU competition enforcer, to question the VMware licensing ​changes.

Belgium's association of digital business users Beltug, and its counterparts France's Cigref, Germany's VOICE and CIO Platform Nederland, have now joined in, accusing Broadcom of imposing ​steep price increases on VMware's virtualisation platform users and excluding ​thousands of providers from deploying and purchasing it.

"We therefore urge you, in the strongest ‌possible ⁠terms, to act swiftly and impose interim measures now," CISPE said in their joint letter dated July 10.

They asked EU antitrust chief Teresa Ribera and EU tech chief Henna Virkkunen to ensure a ​transition period of ​at least three ⁠years while regulators continue their investigation into Broadcom.

Broadcom said it disagreed with CISPE's allegations, calling it an ​organisation funded by large cloud service providers, or ​hyperscalers, which ⁠misrepresent the realities of the market.

"We continue to be committed to investing significantly in our European VMware Cloud Service Provider partners (VCSPs) helping them ⁠offer ​alternatives to the hyperscalers and meet the ​evolving needs of European businesses and organisations," a Broadcom spokesperson said.

The European Commission confirmed ​receipt of the letter.

Reporting by Foo Yun Chee, editing by Andrei Khalip

Our Standards: The Thomson Reuters Trust Principles., opens new tab

An agenda-setting and market-moving journalist, Foo Yun Chee is a 21-year veteran at Reuters. Her stories on high profile mergers have pushed up the European telecoms index, lifted companies' shares and helped investors decide on their next move. Her knowledge and experience of European antitrust laws and developments helped her break stories on Microsoft, Google, Amazon, Meta and Apple, numerous market-moving mergers and antitrust investigations. She has previously reported on Greek politics and companies, when Greece's entry into the eurozone meant it punched above its weight on the international stage, as well as on Dutch corporate giants and the quirks of Dutch society and culture that never fail to charm readers.

Semiconductor giant Broadcom NASDAQ: AVGO has made a name for itself as one of the leading players in AI chips. The industry behemoth, NVIDIA NASDAQ: NVDA, is still far and away the world's largest AI chip company. However, Broadcom’s AI sales tower over other top names like Advanced Micro Devices NASDAQ: AMD and Intel NASDAQ: INTC.

Broadcom Today

$401.62 +0.51 (+0.13%)

As of 09:50 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$269.58▼

$495.00Dividend Yield0.65%

P/E Ratio66.87

Price Target$493.24

Broadcom is far more than just an AI chip company. Its latest deal with tech giant Apple NASDAQ: AAPL, which has an expected value of over $30 billion, clearly demonstrates this.

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With this long-term engagement, Broadcom is locking up sales from its most critical non-AI chip customer for years to come. Apple is also the world’s leading consumer device company, once again demonstrating Broadcom's prowess in attracting the world’s technology leaders.

The deal serves as a reminder that investors should not view Broadcom solely through the AI lens. Although heavily tied to the AI trade, investors would be remiss not to recognize its standing outside of AI when evaluating the company and its stock.

Apple: Broadcom’s Non-AI Chip EngineTo understand the significance of this deal, it is important to understand the breakdown of Broadcom’s revenue streams. Broadcom reports three key revenue lines: AI semiconductors, Infrastructure Software, and Non-AI Semiconductors. Its relationship with Apple falls squarely within the non-AI semiconductor segment, with the firm as an anchor customer. Apple has been a long-standing Broadcom customer, first using Broadcom chips back in 2009 for the iPhone 3GS.

While Non-AI Semiconductors is Broadcom’s smallest segment, it is still a key revenue stream for the company. At $4.2 billion last quarter, it represented approximately 19% of its total $22.19 billion in sales.

Past statements made by Broadcom seem to indicate the firm’s Q4 2024 revenue from Apple was near $2.2 billion. Considering this, it is plausible that Apple now represents around half of Broadcom’s non-AI chip revenue and around 10% of its total revenue.

In this context, the new agreement is significant. By extending the agreement through 2031, Broadcom secures its vital non-AI customer and a large, long-term revenue stream.

Notably, this marks the second time in recent years that the companies have extended their partnership, showing Broadcom’s ability to retain key customers. In 2023, the companies announced a deal in which Broadcom would produce 5G radio-frequency components for Apple.

Now, Broadcom and Apple are renewing their radio-frequency chip partnership. Apple notes, “Broadcom will produce advanced radio-frequency components—including FBAR filters—and advanced wireless connectivity technologies at the Fort Collins facility.”

Apple expects the agreement to exceed $30 billion, with Broadcom producing over 15 billion U.S.-made chips. To support the partnership, Broadcom will invest $1.5 billion to expand and upgrade its Fort Collins facility. While this is a cost to Broadcom, it is well worth the payoff, which is orders of magnitude larger.

Beyond AI Chips: Non-AI Semiconductors and Software Are Huge Revenue DriversWhile highlighting Broadcom’s relationship with Apple, it is also worth noting the importance of its other large segment outside of AI chips: Infrastructure Software. The company’s infrastructure software business is primarily attributed to VMware. VMware provides hypervisor software, which allows companies to use computing resources more efficiently.

In its latest quarter, Broadcom’s Infrastructure Software business generated $7.2 billion in revenue, or 32% of its total sales. This helps solidify the point that investors should not only view Broadcom as an AI chip company. Together, the firm’s Non-AI Semiconductor sales and Infrastructure Software sales came in at $11.4 billion. Thus, just over half of its total sales came from sources other than AI chips. This helps provide a real level of diversification from AI revenue sources.

Additionally, Broadcom expects both its non-AI chip revenue and infrastructure software growth to accelerate significantly next quarter. It forecasts non-AI chip growth of 12% year over year (YOY), compared to 6% YOY last quarter. Non-AI chip bookings also came in at $6 billion last quarter. Broadcom notes that the figure being significantly higher than sales is a “clear indication we're on a path towards a full cyclical recovery." Meanwhile, it sees infrastructure software sales rising 31% YOY, compared to 9% YOY last quarter.

Still, with AI Semiconductor growth expected to rise by over 200% YOY, up from 143% YOY last quarter, the AI Semiconductor segment is certainly Broadcom's main growth driver.

As AI contributes the vast majority of growth, it will continue to have an outsized impact on Broadcom’s share price.

Broadcom Keeps Chugging Away Amid Share WeaknessOverall, Broadcom’s Apple deal solidifies one of its largest relationships with a single customer. Meanwhile, the company expects all three parts of its business to experience accelerating growth next quarter.

Broadcom Inc. (AVGO) Price Chart for Friday, July, 10, 2026

With this, the world’s second-largest semiconductor company continues to fire on all cylinders, despite shares being down about 20% from their highs.

Should You Invest $1,000 in Broadcom Right Now?Before you consider Broadcom, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Broadcom wasn't on the list.

While Broadcom currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

The space race is growing fast, and you don’t have to have gotten in early on SpaceX to profit. This report shows seven space stocks you can buy today that may grow as rockets, satellites, defense, space internet, and new space technology become more important.

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While temperatures have been scorching across much of the U.S., AI chip stocks have cooled off, with the sector facing increased selling pressure this summer. The dip appears largely centered on concerns that AI infrastructure spending could slow. However, hyperscalers have largely indicated that their capital expenditures will only increase next year, and Bank of America recently projected that worldwide, cloud and AI data center capex will jump by 40% to 50% year over year to around $1.5 trillion in 2027.

With data center infrastructure spending still booming, this pullback could be a great chance to scoop up these three AI semiconductor stocks. 

1. Nvidia: Still leading the way

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Nvidia (NVDA +3.74%) remains the king of AI infrastructure, and following the pullback, it trades at just 15 times analysts' estimated earnings for its fiscal 2028 (which ends in January 2028). That's a bargain for a company that is still delivering rapid revenue growth, including 85% growth last quarter.

What I really like about Nvidia, though, is how the company has quietly transformed itself into a complete AI infrastructure package. The company's graphics processing units (GPUs) remain its biggest revenue driver, and its ubiquitous CUDA software platform provides a wide moat for its chips in AI model training.

However, the company also has a top-notch networking portfolio; its "acquisition" of Groq gave it a chip designed specifically for inference; and it's diving headfirst into the data center central processing unit (CPU) market, which is set to boom as the use of agentic AI takes off. This lets it offer complete end-to-end systems for specific AI tasks and should help drive continued strong growth.

At its current valuation, Nvidia is a stock to own.

2. AMD: Riding inference and agentic AI trends

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Advanced Micro Devices (AMD +0.37%) stock has been hot this year, but it, too, has pulled back from its highs. The exciting thing about AMD is that it is riding two of the most powerful trends in AI right now.

The first is inference, where its GPUs compete well against Nvidia's offerings, given their chiplet design, which allows them to be packaged with more memory. AMD has formed partnerships with OpenAI and Meta Platforms, and big orders for its newest GPUs should begin shipping soon. It's also been reported that it may have a deal with Anthropic.

On top of that, AMD is a leader in data center CPUs. 

Because CPUs are the right hardware for managing AI agents, the number of CPUs used in AI data centers is expected to skyrocket. Where previously, the ratio of GPUs to CPUs in AI data center servers built for training stood at 8:1, experts foresee that ratio evolving to 1:1 with infrastructure designed to support agentic AI. AMD sees the total addressable market for data center CPUs growing at a 35% annualized rate to $120 billion by 2030.

Between its GPU and CPU opportunities, AMD looks poised for strong growth.

Image source: Getty Images.

3. Broadcom: The custom chip leader

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Broadcom (AVGO +5.00%) is another company on the verge of explosive revenue growth that has been caught in the AI infrastructure sell-off. The pullback in the stock has taken its valuation down to just 19 times analysts' earnings estimates for its fiscal 2027 (which ends in November 2027).

However, the company should see its custom chip revenue surge to well over $100 billion next year. That's more than the nearly $64 billion in total revenue it generated last year and five times the AI revenue it produced. The company's custom chip business is taking off with the success of Alphabet's Tensor Processing Units (TPUs), which it helped the search leader develop. That has led to other hyperscale customers turning toward its ASIC (application-specific integrated circuit) services to help them develop custom AI chips.

Broadcom has also been a leader in data center networking. This is a fast-growing business that can also tie directly into its custom chip business. Given the company's growth prospects, the stock is just too cheap at these levels.

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Apple said it's expanding its partnership with chipmaker Broadcom in a multi-year deal expected to exceed $30 billion, marking the iPhone maker's largest U.S. manufacturing commitment to date.

The agreement, announced by Apple on Wednesday, will lead to the production of more than 15 billion U.S.-made chips and includes a $1.5 billion expansion of Broadcom's facility in Fort Collins, Colorado. Apple didn't provide a timeline for when the new capacity will come online.

Broadcom has long supplied Apple with connectivity components, but the new agreement deepens that relationship around U.S.-made custom silicon. Apple said Broadcom will make wireless components used to help devices connect to cellular, Wi-Fi and Bluetooth networks.

Broadcom disclosed in a filing with the Securities and Exchange Commission on Monday that it had entered into new long-term agreements with Apple to develop and supply "custom ASIC silicon products" for multiple generations of Apple products through 2031. ASICs are application-specific integrated circuits and are increasingly being used for artificial intelligence workloads.

Read more CNBC tech newsChinese lidar maker with Nvidia ties accused of being cyber risk for U.S.China's Alibaba bans Anthropic AI for employees after 'distillation attack' accusationSpaceX President Gwynne Shotwell to donate stock to Trump AccountsMicrosoft cuts 4,800 jobs, as Xbox unit downsizes and plans to spin off four gaming studiosFor Tim Cook, Apple's outgoing CEO, the agreement marks his latest push to invest in American manufacturing, a major point of emphasis for the Trump administration. It's the biggest piece of his company's $600 billion, four-year U.S. investment plan, announced in 2025, and marks the largest commitment to date under its American Manufacturing Program, or AMP, launched to expand domestic production across its supply chain.

"Apple has been working with the Administration and businesses across the U.S. to help create an end-to-end silicon supply chain in America, and today's announcement advances those efforts," Apple said in the release.

Cook said the components built in Fort Collins are "essential" to the performance and connectivity Apple customers expect, and he thanked President Donald Trump and his administration for supporting the project.

Broadcom CEO Hock Tan said Apple's commitment will help the chipmaker expand its manufacturing footprint in Fort Collins.

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Broadcom logo is seen in this illustration taken June 11, 2026. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab

July 6 (Reuters) - Broadcom (AVGO.O), opens new tab said on Monday it has agreed to expand its partnership with Apple (AAPL.O), opens new tab through 2031 to develop and ​supply custom chips, easing concerns over the iPhone maker's reliance ‌on the chipmaker.

The chipmaker, whose shares jumped nearly 4% in premarket trading, has been supplying key components to Apple for a very long time, including radio frequency chips ​used in iPhones for connecting to cellular networks, Wi-Fi and Bluetooth ​connectivity chips and other networking semiconductors.

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Apple accounts for about 20% ⁠of Broadcom's annual revenue, according to analysts, making it one of ​the chipmaker's largest customers. Despite developing its own chips, including the C1 modem, ​Apple relies on Broadcom for wireless and radio-frequency components.

The extended partnership reinforces Apple's strategy of locking in long-term supply agreements with key chipmakers to bolster the resilience of its supply chain.

The ​companies had in 2023 announced a multibillion-dollar agreement for Broadcom to develop ​and manufacture 5G radio frequency components.

The boom in inference - the process by which models respond ‌to ⁠user queries - has made custom chips crucial, increasing the orders for advanced processors and intensifying competition.

Apple relies on Taiwan's TSMC (2330.TW), opens new tab, the world's largest contract chipmaker, for its in-house processors, including the M-series chips that power its Mac ​computers and the ​A-series chips in ⁠iPhones.

TSMC has been stretched thin by surging demand from AI chipmakers such as Nvidia, which Apple CEO Tim ​Cook said in April had held back iPhone sales.

Apple is also in ​discussions ⁠with Intel (INTC.O), opens new tab to manufacture some chips in the U.S., though analysts have said volume production is unlikely before late 2027.

The company was forced to raise prices of its ⁠MacBooks ​and iPads in June as memory chip costs ​surged as much as 98% in early 2026, driven by AI datacenter demand.

Reporting by Akash ​Sriram and Anhata Rooprai in Bengaluru; Editing by Shinjini Ganguli and Arun Koyyur

Our Standards: The Thomson Reuters Trust Principles., opens new tab

It has been about a month since the last earnings report for Broadcom Inc. (AVGO - Free Report) . Shares have lost about 14% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Broadcom Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.

Broadcom Q2 Earnings Beat Estimates, Revenues Up Y/YBroadcom reported second-quarter fiscal 2026 non-GAAP earnings of $2.44 per share, which beat the Zacks Consensus Estimate by 1.67% and rose 54% year over year.

Revenues rose 48% year over year to $22.19 billion and beat the Zacks Consensus Estimate by 0.68%. The quarter benefited from accelerating AI semiconductor revenues, which reached $10.8 billion, up 143% year over year and exceeding the company’s outlook.

AVGO’s Q2 DetailsSemiconductor solutions revenues (68% of net revenues) totaled $15.01 billion, up 79% year over year. Management said the upside was powered by AI semiconductors, with networking representing almost 40% of AI revenues in the quarter.

Infrastructure software revenues (32% of net revenues) climbed 9% year over year to $7.18 billion. Management noted that software bookings stayed strong and the company sustained ARR growth of 17% year over year.

Profitability remained a standout despite mix headwinds. Non-GAAP gross margin was 77.1%, down 230 basis points year over year as semiconductors became a larger proportion of the mix.

Research and development expenses, as a percentage of net revenues, decreased 290 bps year over year to 7.2%. SG&A expenses, as a percentage of net revenues, decreased 130 bps to 2.6%.

Adjusted EBITDA rose 52% year over year to $15.24 billion. The adjusted EBITDA margin was 68.7%, up 210 bps year over year.

Operating margin rose 52.4% year over year to a record $14.9 billion, reflecting strong operating leverage as non-GAAP operating margin expanded 200 bps year over year to 67.3%.

AVGO’s Balance Sheet & Cash FlowAs of May 3, 2026, cash and cash equivalents were $19.63 billion, up from $14.17 billion as of Feb.1, 2026.

Total debt (including the current portion of $3.15 billion) was $66.06 billion as of Feb. 1, 2026 compared with $65.14 billion as of Nov. 2, 2025.

Broadcom generated $10.49 billion in cash flow from operations in the quarter compared with $8.26 billion in the previous quarter. The free cash flow was $10.26 billion compared with $8.01 billion in the prior quarter.

During the quarter, Broadcom paid stockholders $3.09 billion of cash dividends based on a quarterly common stock dividend of $0.65 per share. The company also repurchased $600 million of common stock under its repurchase program.

AVGO Offers Q3 GuidanceFor the third quarter of fiscal 2026, Broadcom expects revenues of approximately $29.4 billion, indicating 84% year-over-year growth. The company expects non-GAAP operating income and adjusted EBITDA to be approximately 67% and 68% of projected revenues, respectively.

Management also guided for semiconductor revenues of roughly $20.5 billion and infrastructure software revenues of about $8.9 billion for the third quarter of fiscal 2026. Within semiconductors, management expects AI semiconductor revenues to accelerate to $16 billion in the third quarter of fiscal 2026, soaring more than 200% year over year, as demand for custom AI accelerators and AI networking remains strong.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.

VGM ScoresCurrently, Broadcom Inc. has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Broadcom Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerBroadcom Inc. is part of the Zacks Electronics - Semiconductors industry. Over the past month, Credo Technology Group Holding Ltd. (CRDO - Free Report) , a stock from the same industry, has gained 11.2%. The company reported its results for the quarter ended April 2026 more than a month ago.

Credo Technology Group reported revenues of $437 million in the last reported quarter, representing a year-over-year change of +157%. EPS of $1.16 for the same period compares with $0.35 a year ago.

For the current quarter, Credo Technology Group is expected to post earnings of $1.16 per share, indicating a change of +123.1% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Credo Technology Group. Also, the stock has a VGM Score of C.

Shares of custom chipmaker Broadcom (AVGO +1.12%) have been under pressure of late. They're up about 8% for the year, but it wasn't all that long ago that the stock was flying much higher, at nearly $500. As of Monday's close, however, it was at just $372 -- down 25% from its recent high.

The company, however, did announce a new custom chip that could lead to some exciting growth opportunities ahead for the business, focused on inference. Could this be the catalyst that could lift the tech stock to new heights?

Image source: Getty Images.

Broadcom partners with OpenAI on new LLM-optimized processor Last week, Broadcom unveiled a chip that could spice up its growth, called Jalapeño. It's a chip that centers around OpenAI's vision for artificial intelligence (AI), and that's designed for large language models (LLMs). The processor is modeled to meet the needs of agentic AI workloads, which have been growing in importance as tech companies have developed cutting-edge models that are now able to take on multi-step processes, focusing more on inference rather than development.

Broadcom says that while it is still in testing, Jalapeño's per-watt performance is "substantially better than current state-of-the-art." This is key for not only OpenAI, which owns the popular ChatGPT chatbot, but also other companies that are investing heavily in AI and that need greater efficiency. This can unlock significant revenue from OpenAI, and it could help Broadcom develop similar chips for companies involved with other chatbots.

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Should you buy Broadcom stock right now? Broadcom's most recent quarterly results weren't enough to give the stock a boost, even though its revenue rose by 48% to $22.2 billion. The challenge for Broadcom is that with a high valuation -- the stock trades at more than 60 times earnings -- the bar is set fairly high. The launch of Jalapeño may be the catalyst the business needs for the stock to get to new highs.

At a reduced price and with plenty of growth opportunities still out there for the business, now could be an enticing time to buy Broadcom's stock. There's still some risk due to its high valuation and the expectations that will inevitably come with it, but with Broadcom being a trusted partner among key hyperscalers and being well-positioned to meet the needs of AI models, now could be a good time to buy the stock and hang on for the long haul.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Broadcom. The Motley Fool has a disclosure policy.

Broadcom stock NASDAQ:AVGO has fallen sharply from its record high, but the selloff may say more about investor expectations than about weakness in AI demand.

Shares have retreated from around $495 to much lower levels, leaving the stock more than 24% below its peak.

That looks brutal, but Broadcom’s latest quarter was not a demand collapse. The company reported record revenue, strong earnings and a huge jump in AI semiconductor sales.

Broadcom’s fiscal second-quarter numbers were strong on the surface.

Revenue rose 48% from a year earlier to a record $22.2 billion, while adjusted earnings came in at $2.44 a share. AI semiconductor revenue jumped 143% year on year to $10.8 billion.

The real trigger was guidance. Broadcom said it expects AI chip revenue of about $16 billion in the fiscal third quarter.

That would still be more than triple the year-earlier level, but it came in below the roughly $17 billion-plus investors had hoped for.

The bigger disappointment was that CEO Hock Tan did not raise Broadcom’s longer-term AI target. He reiterated that the company is still aiming for more than $100 billion in AI chip sales in fiscal 2027.

In this market, “on track” was not enough.

Trading volume surged as the stock fell, showing this was a panic-style reset rather than a slow reassessment.

Broadcom’s management still sounds confident about demand.

Tan said demand for XPUs and networking is “simply insatiable,” adding that AI semiconductor bookings in the quarter were over $30 billion against the $10.8 billion the company shipped.

That means customers are still ordering far more than Broadcom can currently deliver.

The company has also pointed to gigawatt-scale commitments from major AI customers, including Anthropic, OpenAI and Meta.

Broadcom now expects to ship more than 10 gigawatts of AI chips in 2027, slightly above its earlier view.

Wall Street has not abandoned the stock either. JPMorgan reiterated its Overweight rating and $580 price target, telling clients it would be “aggressive buyers” at current levels.

The broader analyst picture remains heavily bullish. Recent consensus screens show dozens of Buy ratings, only a handful of Holds and no Sells, with average price targets still above $500.

There are real risks as CFO Kirsten Spears has previously flagged margin pressure as AI becomes a bigger part of Broadcom’s mix, because some AI system sales may carry lower margins than its software business.

Tan has also acknowledged that Google may diversify TPU suppliers over time, even though Broadcom remains central to Google’s custom chip roadmap.

Broadcom’s drop did not happen in isolation.

The selloff spilled into the broader semiconductor space, with Nvidia, AMD, Marvell, Intel, Micron and other chip names also coming under pressure in the days after the report.

Texas Instruments and Analog Devices were hit in a wider chip-sector pullback as investors questioned whether AI-related valuations had run too far.

The market was looking for any sign that the AI trade had become too crowded.

Broadcom’s decision not to raise its long-term target gave investors an excuse to take profits across the group.

Built from the ground up for current and future LLMs across the industry

Developed from design to production in nine months, accelerated by OpenAI’s models

Will deliver performance per watt better than current state-of-the-art, based on early testing

Expands OpenAI’s full-stack platform, from products to models and now to chips

To be deployed at gigawatt scale with data center partners, over multiple generations

SAN FRANCISCO and PALO ALTO, Calif., June 24, 2026 (GLOBE NEWSWIRE) -- OpenAI and Broadcom (NASDAQ: AVGO) today unveiled Jalapeño, OpenAI’s first Intelligence Processor: an accelerator architected around OpenAI’s vision for the future of LLM inference, and the first AI accelerator in a multi-generation compute platform the companies are building together to make advanced AI faster, more reliable, and more accessible to more people.

Jalapeño was delivered to OpenAI CEO Sam Altman and President Greg Brockman by Broadcom President and CEO Hock Tan and Semiconductor Solutions President Charlie Kawwas, marking an important step in OpenAI’s strategy to build the full stack behind its models and products.

OpenAI designed the chip from scratch around its deep understanding of LLM fundamentals, informed by its roadmap of models, kernels, serving systems, and product needs, with partners Broadcom and Celestica, helping industrialize the platform through chip implementation, board, rack system integration, high-performance networking, and scalable production systems. Jalapeño is designed with flexibility to work with all LLMs guided by OpenAI's insights into the inference needs of current and future AI models across the industry. Engineering samples of the Jalapeño chip are running ML workloads in the lab at production target frequency and power, including GPT-5.3-Codex-Spark.

While OpenAI is still measuring final performance, early testing shows that Jalapeño will deliver performance per watt substantially better than current state-of-the-art. A detailed technical report on performance will be presented in the coming months. The architecture reduces data movement and balances compute, memory, and networking resources to achieve realized utilization much closer to theoretical peak performance. Broadcom’s silicon implementation and networking technologies, including Tomahawk networking silicon, help bring the platform to large-scale production.

“The world is moving to a compute-powered economy,” said Greg Brockman, President and Co-Founder, OpenAI. “Jalapeño is part of our long-term full-stack infrastructure strategy to make compute more abundant, resulting in AI which is faster, more reliable, more affordable for people and businesses, and can be used to solve more important problems. By designing more of the stack ourselves, we can serve more intelligence with greater efficiency and keep pushing advanced AI toward broader access.”

“Jalapeño was designed from the ground up for LLM inference using detailed insights from our close collaboration with OpenAI researchers,” said Richard Ho, who leads OpenAI’s hardware program. “We optimized the architecture around the kernels, memory movement, networking, and serving patterns that matter most for frontier AI models. Based on early testing, Jalapeño will efficiently execute our most important workloads close to the hardware’s theoretical limits.”

“Our collaboration with OpenAI represents a fundamental commitment to scaling the physical infrastructure required for the next decade of AI,” said Hock Tan, President and CEO, Broadcom. “This is just the beginning of a multi-generation roadmap. By co-developing our industry-leading silicon directly with OpenAI, we are enabling the deployment of gigawatt scale data centers with Microsoft and other partners beginning in 2026.”

Designed to be the best inference platform for LLMs

Jalapeño is a blank-slate design for modern LLM inference, not a general-purpose accelerator adapted from earlier AI workloads. It is informed by the systems OpenAI runs every day across ChatGPT, Codex, the API, and future agentic products, while also being designed for current and future LLMs across the industry. The goal is to combine the power and throughput of today’s leading AI accelerators with latency closer to the fastest specialized inference systems, making Jalapeño well suited for interactive LLM products at scale.

Nine-month tape-out, accelerated by OpenAI models

Jalapeño was co-developed from initial design to manufacturing tape-out in just nine months, and the custom AI accelerator program represents what may be the fastest ASIC development cycle ever achieved in high-performance advanced semiconductors. That speed reflects deep software-hardware co-development with OpenAI’s engineering teams, Broadcom’s silicon implementation expertise, and the use of OpenAI models to accelerate parts of the design and optimization process.

The same models served to users are helping improve the infrastructure used to run future models. If AI can help engineers design better chips faster, it can lower the cost of compute across the industry and help democratize access to advanced AI.

Building a multi-generation platform with partners

Jalapeño is the first step in a multi-generation compute platform designed for initial deployment by the end of 2026, and expanding in the years ahead, combining OpenAI-designed accelerators with Broadcom silicon implementation, networking, and connectivity technologies; and Celestica’s board, rack and system expertise.

Additional Resource

Read the OpenAI blog post

About OpenAI

OpenAI is an AI research and deployment company. Our mission is to ensure that artificial general intelligence benefits all of humanity.

About Broadcom

Broadcom Inc. (NASDAQ: AVGO) is a technology leader that designs, develops, and supplies semiconductors and infrastructure software for global organizations' complex, mission-critical needs. Broadcom combines long-term R&D investment with superb execution to deliver the best technology, at scale. Broadcom is a Delaware corporation headquartered in Palo Alto, CA. For more information, visit www.broadcom.com.

Press Contacts

OpenAI: [email protected]

Broadcom: [email protected]

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