AVGO

Broadcom Inc. operates as a global technology leader designing, developing, and supplying semiconductor and infrastructure software solutions serving data center, networking, broadband, wireless, and industrial markets worldwide. Headquartered in Palo Alto, California, Broadcom ranks among the world's largest semiconductor companies with market capitalization exceeding $600 billion, generating annual revenues surpassing $35 billion through diversified product portfolios including networking chips powering cloud data centers, broadband processors enabling cable modems and set-top boxes, wireless connectivity chips for smartphones and IoT devices, and storage controllers managing enterprise data systems. The company's semiconductor business designs custom and semi-custom chips for hyperscale data center operators including Google, Amazon, Meta, and Microsoft requiring specialized processors optimizing AI workloads, network switching, and storage applications. Broadcom's infrastructure software segment includes enterprise software assets acquired through VMware acquisition completed in November 2023 adding virtualization platforms, cloud management tools, and cybersecurity solutions expanding addressable markets beyond semiconductors. The company operates as fabless semiconductor designer partnering with foundries including Taiwan Semiconductor Manufacturing Company for chip production, enabling capital-efficient operations without massive fabrication facility investments. Broadcom reported exceptionally strong financial performance with gross margins exceeding 70%, operating margins above 50%, and free cash flow generation approaching $20 billion annually supporting substantial shareholder returns through dividends yielding 2% and aggressive share buyback programs. Recent strategic developments include AI chip design wins supplying custom accelerators for major technology companies deploying large language models and machine learning applications, VMware integration extracting synergies and cross-selling opportunities bundling software with semiconductor solutions, and wireless connectivity chip cycles supporting 5G smartphone adoption and Wi-Fi 7 infrastructure deployments. The company faces competition from NVIDIA dominating AI chip markets, Marvell Technology targeting similar data center networking opportunities, and Qualcomm leading mobile connectivity markets, while managing customer concentration risks with top clients representing substantial revenue portions creating cyclical exposure to technology spending patterns.