Broadcom Stock (AVGO): AI Chips, VMware and Valuation in Numbers

Michael Whitman · Trading since 2017, full-time since 2020 · YouTube creator, 137K subscribers · Published 2026-11-07 · Updated 2026-11-08

Broadcom stock trades on the Nasdaq under the ticker AVGO. The company is two businesses under one share price: chips, now mostly custom AI processors and networking parts sold to a few cloud giants, and the infrastructure software it bought, with VMware as the largest piece.

A quote page gives you the price, a P/E and an analyst target. It does not split the revenue, price the AI chips in dollars or show what VMware did to the debt. We built those from Broadcom’s filings, its results releases and the daily price record since 2009.

AVGO on November 6, 2026

Earnings, revenue and equity come from the 10-Q for the quarter ended August 2, 2026, filed September 10. Broadcom’s fiscal year ends on the Sunday nearest October 31, so that quarter is the third of fiscal 2026.

In 2026 to November 6, AVGO fell 15.1%, while the S&P 500 rose 7.8% and SMH, a fund of large chip makers, rose 28.8%. On November 5 alone it dropped 10.43%, to $291.53, its lowest close since August 21, 2025.

How it works: custom chips for a few buyers, software for the rest

Semiconductor solutions. This segment sells networking chips, custom AI accelerators (chips designed with one customer for that customer’s data centers), broadband, wireless and storage parts. It brought in $20.84 billion in the quarter to August 2, 2026, with an operating margin of 61.3%.

Infrastructure software. VMware’s cloud software plus older lines such as mainframe and security tools. It brought in $8.75 billion in the same quarter at an operating margin of 83.7%.

A large backlog. The 10-Q lists $179.2 billion of remaining performance obligations, meaning contracted revenue not yet recognized, as of August 2, 2026.

Few, large customers. One customer accounted for 32% of fiscal 2025 revenue, against 28% in 2024 and 21% in 2023, all of it chip revenue. The 10-K calls it a distributor, so the 32% is a sales channel, not one end buyer; the top five end customers took about 40% in each of fiscal 2024 and 2025. Our concentration risk page explains why that kind of dependence cuts both ways.

AI chips, quarter by quarter

Broadcom gives AI revenue only in its results releases, not as a 10-Q line; the table uses those exact figures beside the segment numbers from the filings.

The fiscal 2025 fourth-quarter release gave only AI growth (74% year on year), not dollars, so that row is left out. For the whole of fiscal 2024 Broadcom put AI revenue at $12.2 billion.

Subtract AI from chip revenue and what is left barely moved: $4.11 billion in the quarter to February 2, 2025 and $4.14 billion in the quarter to August 2, 2026. Almost all of the 127.4% jump in chip revenue over the last year came from AI. Total revenue rose 85.5% from a year earlier to $29.59 billion.

Broadcom after VMware: more software, more debt

The deal. Broadcom completed the VMware purchase on November 22, 2023. VMware holders received $30.79 billion in cash and 544 million Broadcom shares (split-adjusted) valued at $53.40 billion; the filing puts total consideration at $86.29 billion.

Software’s share. In the quarter to October 29, 2023, the last before the deal, software was $1.97 billion, or 21.2% of revenue. One quarter later it was $4.57 billion and 38.2%, and it peaked at 44.9% in the quarter to February 2, 2025. Since then AI chip growth has pushed the share down to 29.6%, even as software revenue kept rising, to $8.75 billion.

The debt. Debt on the balance sheet was $39.23 billion on October 29, 2023 and $75.90 billion on February 4, 2024, a rise of $36.67 billion in one quarter, of which $7.52 billion (at fair value) was VMware’s own debt taken over in the deal. It fell to $67.57 billion by November 3, 2024 and $59.42 billion by August 2, 2026, when cash stood at $23.98 billion. Debt equaled 1.46 times the $40.65 billion of operating cash flow over the last twelve months. Our debt-to-equity ratio page covers the other common way to size it.

The split. Broadcom completed a ten-for-one stock split on July 12, 2024, and AVGO traded on the new basis from July 15. Every price on this page is adjusted for it; see stock split for how that works.

The original data: 31 quarters of segment revenue and 69 results days

Revenue by segment. We read the XBRL data in every 10-Q and 10-K Broadcom Inc. filed from March 2019 to September 2026 and took revenue for each segment and quarter, as first reported. Fourth quarters are the fiscal year minus the first nine months. In fiscal 2019 a small IP licensing line, $12 million to $23 million a quarter, is counted with chips in the chart.

What the 31 quarters show:

• Size. Quarterly revenue grew 5.11 times, from $5.79 billion in the quarter to February 3, 2019 to $29.59 billion.
• Flat chips, then a surge. Chip revenue sat between $6.81 billion and $7.39 billion for seven quarters, from the quarter to January 29, 2023 to the quarter to August 4, 2024. It reached $9.17 billion a year later and $20.84 billion a year after that.
• Software margins rose after the deal. Software’s operating margin was 73.8% in fiscal 2023, fell to 65.1% in fiscal 2024 with VMware’s costs, and reached 76.8% in fiscal 2025.

What results day does to the price. We counted every 8-K with Item 2.02 from Avago Technologies, Broadcom Limited and Broadcom Inc., kept the 69 that released quarterly results, and took the close before the news and the close after it. We read each document, since Avago’s February 2011 report sits under the wrong item number in the EDGAR index. Sixty-seven came after the close. Two came before the open on days that also announced a takeover, the Broadcom deal on May 28, 2015 and the VMware deal on May 26, 2022.

• Size. The median move was 4.81% either way, 4.0 times the 1.21% median on the other 4,251 sessions since the first report. 31 of the 69 moved 5% or more and 7 moved 10% or more.
• Direction. 49 were up, 71.0%, against 52.9% of other sessions. A gap that wide would turn up by chance about 2 or 3 times in 1,000 (two-sided binomial test, p = 0.0025). It is a record of the past 17 years, not a rule for the next report.
• Extremes. The biggest rise was 24.43% on December 13, 2024, the day after Broadcom put fiscal 2024 AI revenue at $12.2 billion. The deepest fall was 12.59% on June 4, 2026.
• Lately. Over the last eight reports the median move was 9.02% and four were down.

The deepest falls. A fall runs from a record close to the lowest close before the next record. Since the 2009 listing there have been five of 30% or more.

The record close is $481.57 on June 2, 2026. Price gains were 99.6% in 2023, 107.7% in 2024 and 49.3% in 2025, before this year’s fall. Our drawdown page explains the measure.

Download the data: Broadcom revenue by segment and Broadcom earnings-day moves. Both files are free to reuse with credit and a link back to this page, under our site license.

A worked example: how the P/E fell from 90.7 to 37.5

All inputs come from Broadcom’s XBRL filings except the share price.

1. Trailing earnings. Diluted EPS was $6.09 for the nine months to August 2, 2026, $4.77 for fiscal 2025 and $3.02 for the nine months to August 3, 2025. Last twelve months = $6.09 + $4.77 − $3.02 = $7.84.
2. P/E. $293.69 ÷ $7.84 = 37.5.
3. Market value. $293.69 × 4,773,629,865 shares = $1.402 trillion.
4. Price-to-sales. Revenue was $71.09 billion for the nine months, $63.89 billion for fiscal 2025 and $45.87 billion for the nine months a year earlier, so trailing revenue was $89.10 billion. $1.402 trillion ÷ $89.10 billion = 15.73.
5. Yield and payout. $0.65 × 4 = $2.60 a year. $2.60 ÷ $293.69 = 0.89%, and $2.60 is 33.2% of trailing EPS.

The same sums a year earlier. On November 6, 2025 AVGO closed at $355.59. The 10-Q then gave trailing diluted EPS of $3.02 + $1.23 − $0.33 = $3.92, a P/E of 90.7. Trailing EPS has since doubled while the price fell 17.4%, so the multiple dropped by more than half. Our P/E ratio and earnings per share pages explain the inputs.

When it fails: a few cloud buyers and one product cycle

A customer can change plans. With the top five end customers at about 40% of revenue and AI at 56.4% of the latest quarter, a pause by a single large cloud buyer would reach a large part of Broadcom’s sales at once. Custom accelerators are designed for one customer, so they cannot simply be resold to another.

Good numbers do not guarantee a good day. The September 2026 report showed AI revenue up 221% from a year earlier, and the stock still fell 2.74% the next day, from $367.24 to $357.16. By November 6 it was 20.0% below the close on the day of that report.

The rest of the chip business is not growing. Outside AI, chip revenue stayed between $3.97 billion and $4.21 billion in each of the six quarters since the start of fiscal 2025 for which Broadcom gave an AI figure. If AI demand slows, there is little else in the segment to make up the gap.

Debt is lower but still large. $59.42 billion of debt sits against $40.65 billion of yearly operating cash flow, and much of it came from one deal that rests on VMware’s software revenue staying steady.

These numbers age fast. Fiscal 2026 ended on November 1, 2026, and last year’s fourth-quarter report came on December 11, 2025.

Questions people ask

What is the AVGO ticker?

AVGO, on the Nasdaq. It is the common stock of Broadcom Inc. The ticker comes from Avago Technologies, which listed in August 2009, bought the old Broadcom Corporation in 2016 and took the Broadcom name. Its first close as a listed company was $16.18 a share, or $1.62 after the 2024 split.

What is Broadcom’s market cap?

About $1.40 trillion at the November 6, 2026 close of $293.69, using the 4,773,629,865 shares on the cover of its September 2026 10-Q. Our market cap page explains the measure.

Does Broadcom pay a dividend?

Yes, every quarter since December 2010, 64 payments in all. The latest is $0.65 a share, raised from $0.59 in December 2025, which is a 0.89% yield at $293.69. In the first nine months of fiscal 2026 Broadcom paid $9.28 billion in dividends and spent $8.45 billion buying back stock. See dividend yield and dividend growth.

When did Broadcom split its stock?

Ten-for-one, completed July 12, 2024, with split-adjusted trading from July 15. The last close on the old basis was $1,700.67 a share, or $170.07 after adjusting.

Why did Broadcom stock fall in 2026?

The filings give no reasons for price moves, but the numbers show the stock fell 39.5% from its June 2 record to November 5 while revenue and earnings kept rising, so the P/E came down from 90.7 a year earlier to 37.5. Broadcom was not alone on the worst day: on November 5, when AVGO fell 10.43%, Nvidia fell 9.26%, as our Nvidia stock page records.

Related

The other large AI chip stock is on Nvidia stock, and a memory maker on the same cycle on Micron stock. If you hold Broadcom through a chip or technology fund, sector funds explains what that concentration means. The valuation side is on price-to-book, beta and free cash flow.

This page is educational, not financial advice. Test every idea on your own charts before risking money.