1. Company Overview and History
Broadcom Inc. is a global fabless semiconductor and IT infrastructure company founded in 1991 in San Jose, California, by Henry Samueli and Henry Nicholas. The company initially focused on designing networking and communication integrated circuits (ICs) and was listed on NASDAQ in 1995. Through aggressive mergers and acquisitions (M&A), Broadcom expanded into networking, wireless communications, storage, broadband, and data centers. In 2015, Singapore-based Avago Technologies acquired Broadcom for $37 billion and adopted the Broadcom name. Since then, Broadcom has acquired major IT companies such as CA Technologies, Symantec, and VMware, evolving into a global tech leader spanning semiconductors, software, cloud, and security.
2. What Was Avago?
Avago traces its roots to HP’s semiconductor division founded in 1961, which became part of Agilent Technologies in 1999. In 2005, it was spun out as Avago Technologies through a private equity buyout. Avago went public on NASDAQ in 2009 and expanded through acquisitions of LSI, PLX, Emulex, and more. Its core strengths were in III-V compound semiconductors, analog, optoelectronics, and mixed-signal chips, serving wireless/wired communications, industry, automotive, and computing. In 2016, after acquiring Broadcom, Avago changed its name to Broadcom, laying the foundation for today’s global IT infrastructure giant.
3. Main Business Areas and Revenue Structure
Broadcom’s business is divided into two pillars: Semiconductor Solutions and Infrastructure Software.
3-1. Semiconductor Solutions (Approx. 60% of Revenue)
- AI Semiconductors & Custom Chips (ASIC, XPU):
Supplies high-performance AI accelerator chips for data centers and cloud to big tech (Google, Meta, etc.), pioneering the industry’s first 2nm AI XPU. - Networking Semiconductors:
Network switch/router chips (Tomahawk, Jericho series) for data centers and telecom. Core to AI and cloud infrastructure. - Server Storage Connectivity Chips:
High-speed interface and controller chips connecting servers and storage. - Broadband & Wireless Chips:
Chips for internet/telecom equipment, Wi-Fi/Bluetooth for smartphones and IoT. - Industrial & Specialty Semiconductors:
Chips for factory automation, automotive, and industrial devices.
3-2. Infrastructure Software (Approx. 40% of Revenue)
- Cloud & Virtualization Software:
VMware’s server, network, and storage virtualization, multi-cloud infrastructure management. - Cybersecurity & Data Protection:
Enterprise security, storage network security, distributed environment security. - Mainframe & Distributed Systems Software:
Management and optimization for large enterprise mainframes and distributed computing. - Storage Networking Software:
Software for data center storage connectivity and management.
4. Recent Performance and Growth Drivers
- Q1 2025 Revenue: $14.9 billion (+25% YoY)
- AI Semiconductor Revenue: $4.1 billion (+77% YoY), Q2 expected at $4.4 billion
- Software Revenue: $6.6 billion (+25% YoY, VMware impact)
- Overall Revenue Growth: 21%+ expected for 2025
- Operating Margin: Over 50%, industry-leading net margin
- AI Semiconductor Share: 22% in 2024, projected to exceed 40% by 2027
5-Year Stock Price Trend (10:1 Split Adjusted, Year-End Close)
| Year | Open | High | Low | Close | Annual Change |
|---|---|---|---|---|---|
| 2020 | 27.90 | 39.63 | 14.53 | 39.63 | +44.9% |
| 2021 | 38.49 | 62.84 | 38.13 | 62.01 | +56.5% |
| 2022 | 61.82 | 62.53 | 40.74 | 53.78 | -13.3% |
| 2023 | 53.24 | 112.32 | 53.24 | 109.81 | +104.2% |
| 2024 | 106.77 | 248.58 | 103.20 | 231.14 | +110.5% |
- June 2025 Market Cap: $1.18 trillion (approx. KRW 1,612 trillion)
5. Recent Issues & Market Trends
- Q2 2025 Earnings: Record quarterly revenue ($15 billion), driven by AI and software.
- Short-Term Stock Correction: 5% drop post-earnings, but up 96% YoY.
- AI Growth & Valuation Debate: Explosive AI chip sales, increasing reliance on hyperscalers, valuation and growth slowdown concerns.
- VMware Synergy: Launch of new cloud/virtualization products, expanding software revenue.
- 2024 10:1 Stock Split: Improved investor access and liquidity, further splits anticipated.
- Next-Gen Networking Launches: Custom AI data center chips, 2nm AI XPU innovation.
6. Competitor Comparison
| Broadcom (AVGO) | NVIDIA (NVDA) | AMD | Intel (INTC) | Qualcomm (QCOM) | |
|---|---|---|---|---|---|
| Segments | Semis (networking, AI, wireless, storage), infra SW | GPU, AI, data center, auto | CPU, GPU, data center, AI | CPU, foundry, data center | Mobile AP, comms, IoT |
| AI Focus | Custom AI chips (ASIC), networking, SW | General-purpose GPU AI | CPU/GPU AI | CPU AI, foundry | AI comms, mobile AI |
| Software | VMware infra/security/virtualization | CUDA, AI platform | ROCm, embedded SW | XPU, data center SW | Comms solutions |
| Customers | Big tech (Google, Meta), telecom, B2B | Big tech, cloud, gaming | Server, PC, cloud | Server, PC, cloud | Smartphone, IoT, auto |
| Growth | 34% (2025) | 265% (2025) | 10% (2025) | 9.7% (2025) | 5% (2025) |
| Op Margin | 50%+ | 50%+ | ~20% | ~15% | ~25% |
| Market Cap | $1.18T | $3.3T | $110B | $93B | $180B |
Broadcom stands out with a wide B2B portfolio in networking, AI infrastructure, custom chips, and VMware-based software, plus high profitability. NVIDIA dominates AI/GPU, AMD and Intel are growing in server/AI/foundry but have less influence in AI infra, and Qualcomm leads in mobile/IoT/edge AI.
7. Who Is CEO Hock E. Tan?
Hock E. Tan, born in Penang, Malaysia, holds bachelor’s and master’s degrees in mechanical engineering from MIT and an MBA from Harvard. He served as CEO of ICS and Avago before becoming Broadcom’s CEO in 2006. He led the Avago-Broadcom merger and subsequent acquisitions of Brocade, CA Technologies, Symantec, and VMware.
- Management Style: Aggressive M&A, cost efficiency, high profitability, pragmatism, balances innovation and ROI.
- Achievements: Stock up 1,100% since 2016, highest-paid U.S. CEO in 2023 ($161.8 million).
- Social Impact: Active in autism research/education philanthropy, major donations to MIT/Harvard, Meta board member (since 2024).
8. ESG Management & Future Strategy
- Environment: Energy-efficient chip design, eco-friendly packaging, carbon reduction.
- Social: Diversity/inclusion, STEM education, autism research philanthropy.
- Governance: Independent board, transparent management, shareholder returns (dividends, buybacks).
- Future Strategy: Expand AI/cloud infra investment, lead next-gen tech (2nm, quantum-safe encryption, 3.5D packaging), pursue more software/security M&A, diversify global supply chain.
9. Risks & Investment Points
- Risks: Global economic slowdown, IT investment cutbacks, intensifying competition, M&A integration risk, geopolitical issues (e.g., U.S.-China), supply chain instability.
- Investment Points: Focus on AI/cloud/networking growth, M&A-driven market/tech expansion, long-term contracts with major clients, high profitability/dividends, Hock Tan’s leadership.
10. Conclusion
Broadcom is a core infrastructure leader for the AI/cloud era, combining semiconductors and software with a unique business model, customized client strategies, and strong leadership under Hock Tan. While NVIDIA sets the standard for AI compute, Broadcom serves as the “hub” of data center and infrastructure, driving innovation in its own way. With the world’s 8th largest market cap in 2025, surging AI and software revenue, and strong long-term investment appeal, Broadcom is firmly positioned as a top global growth stock.