AVGONasdaqSemiconductors & Related DevicesUS GAAP · USD

Broadcom Inc.

Broadcom Inc. designs and supplies semiconductor solutions and infrastructure software used in networking, broadband, wireless, storage, and enterprise IT environments. The company combines a large semiconductor portfolio with software assets acquired over time, including VMware and Symantec Enterprise Security, to serve both hardware and software infrastructure needs. Its business model is built around high-volume semiconductor shipments through distributors, OEMs, and contract manufacturers, alongside subscription and license-based software sold to large enterprises and government customers. Broadcom operates globally, with engineering resources in the U.S., Asia, and Europe and manufacturing heavily dependent on outsourced foundry and contract manufacturing partners.

Revenue63.9bn USD
+23.9 %y/y
Operating profit (EBIT)25.5bn USD
+89.3 %y/y
EBIT margin39.9%
+13.8 ppy/y
Net income23.1bn USD
+292.3 %y/y
Free cash flow26.9bn USD
+38.6 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

020406080bn USD2020: 23.9 bn USD2020: EBIT 4.0 bn USD20202021: 27.5 bn USD2021: EBIT 8.5 bn USD20212022: 33.2 bn USD2022: EBIT 14.2 bn USD20222023: 35.8 bn USD2023: EBIT 16.2 bn USD20232024: 51.6 bn USD2024: EBIT 13.5 bn USD20242025: 63.9 bn USD2025: EBIT 25.5 bn USD202563.925.5
RevenueOperating profit (EBIT)

Business

Share of revenue
Semiconductor solutions58 %

Integrated circuits and related hardware used in networking, wireless, broadband, storage, and AI/data-center applications.

Infrastructure software42 %

Enterprise software platforms and security tools, including VMware-based private cloud offerings and endpoint/security software.

Products

Reported · share of revenue
70.2%29.8%FY2025100 %
  • Products70.2 %
  • Subscriptionsand Services29.8 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Broadcom sells semiconductors primarily through distributors, OEMs, and contract manufacturers, and a relatively small number of customers account for a large share of revenue. Its semiconductor customers include large electronics and system companies that design in North America or Europe and manufacture in Asia, which makes the company important in global supply chains. On the software side, customers are generally large enterprises with heterogeneous computing environments, including banks, insurers, government agencies, telecom providers, IT service providers, manufacturers, retailers, education institutions, and healthcare organizations. Broadcom also serves hyperscale cloud providers, value-added OEMs, and VMware cloud service provider partners for private cloud infrastructure software. Customer concentration is a defining feature of the business because the loss or delay of a few large accounts can materially affect quarterly results.

Distributors

Buy semiconductor inventory for resale and accounted for a substantial majority of semiconductor sales; Broadcom relies on them for reach and channel efficiency.

OEMs and contract manufacturers

Purchase chips for integration into networking, wireless, storage, and other electronic systems, often under long-running design relationships.

Large enterprise software customers

Buy VMware and infrastructure software subscriptions/licenses to run and manage hybrid and private cloud environments.

Government and regulated institutions

Use infrastructure software for secure, compliant IT environments and endpoint/security management.

Cloud providers and service partners

Purchase software to support private cloud deployments and license portability across on-premises and cloud endpoints.

Strategy

Broadcom’s strategy centers on sustained technology leadership and category-leading infrastructure products for business and government customers. The company emphasizes internal R&D plus acquisitions to expand its portfolio and preserve market leadership, which is consistent with its history of building scale through major deals such as VMware and Symantec Enterprise Security. A key priority is deepening penetration with existing core semiconductor, mainframe, VMware, and endpoint-security customers while expanding adoption of enterprise software offerings. Broadcom also aims to benefit from AI-related demand and cloud infrastructure shifts, while managing the timing risk created by customer order patterns and the transition from perpetual licenses to subscriptions. The strategy is designed to produce diversified and durable results across hardware and software infrastructure markets.

Expand enterprise software penetrationMedium term

Software subscriptions and services can deepen customer relationships and improve recurring revenue visibility.

Maintain semiconductor leadership in AI and networkingShort term

AI infrastructure and high-speed networking are important demand drivers for the semiconductor portfolio.

Use acquisitions to extend the platformMedium term

Acquisitions have been a core mechanism for adding capabilities and scale across hardware and software.

Geography

Q2/2026

Broadcom is operationally global, with design, product, and software engineering resources primarily in the U.S., Asia, and Europe. Manufacturing is heavily outsourced, and the company notes that title and control for many products transfer in Penang, Malaysia, making Malaysia a key logistics and manufacturing hub. The company disclosed that 17% of fiscal 2025 net revenue came from shipments or deliveries to China, including Hong Kong, down from 20% in fiscal 2024, highlighting meaningful exposure to Greater China demand and trade conditions. Because many semiconductor customers design in North America or Europe but manufacture in Asia, Broadcom’s revenue and supply chain are tied to cross-border production flows. The company also depends on regional distributors, global OEMs, and cloud/software delivery channels, so geography affects both demand concentration and fulfillment risk.

Asia Pacific66 %
Americas23 %
Europe, Middle East and Africa11 %

Share of the revenue the company reports by geography.

Risks

Broadcom faces significant customer concentration risk because a small number of distributors and end customers account for a large portion of revenue, making results sensitive to order timing or demand changes. The company also depends on outsourced manufacturing and critical suppliers, so any disruption at foundries or contract manufacturers can delay shipments, reduce yields, or raise costs. Its semiconductor business is exposed to cyclical demand in networking, wireless, and AI-related applications, while the software business is exposed to subscription transition timing and customer termination rights. Cybersecurity, privacy, and IP compliance are material risks because Broadcom sells infrastructure software that is expected to secure and manage customer environments, and any failure could damage reputation and trigger regulatory or contractual consequences. Geopolitical and trade exposure, especially to China including Hong Kong, adds another layer of uncertainty to demand and shipment patterns.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Customer concentration1Outsourced manufacturing and supply chain dependence2Cybersecurity and data protection compliance3Revenue timing volatility from order patterns and subscriptions4
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Customer concentrationImpact: HighLikelihood: Medium

    Top customers and distributors represent a large share of revenue, so the loss or delay of one account can materially affect results.

    Exposure: Top five end customers and distributors

  2. Outsourced manufacturing and supply chain dependenceImpact: HighLikelihood: Medium

    Broadcom relies on contract manufacturers and foundries for most semiconductor production, making it vulnerable to capacity, yield, and qualification issues.

    Exposure: Semiconductor solutions

  3. Cybersecurity and data protection complianceImpact: HighLikelihood: Medium

    Infrastructure software customers expect secure products, and regulatory or contractual failures can create expense and liability.

    Exposure: Infrastructure software

  4. Revenue timing volatility from order patterns and subscriptionsImpact: MediumLikelihood: Medium

    Large customer orders, delayed orders, and subscription/license transitions can shift revenue between quarters.

    Exposure: Quarterly revenue comparability

  5. China and Greater China demand exposureImpact: Medium

    A meaningful share of revenue is tied to shipments or deliveries to China including Hong Kong, which is sensitive to trade and macro conditions.

    Exposure: China including Hong Kong

Accounting

Judgemental items
Revenue recognition

Broadcom recognizes semiconductor revenue when control transfers and software revenue based on subscription/service performance obligations, which affects timing and comparability.

Impact: Quarterly revenue and margin volatility

Acquisition-related intangible amortization

Large acquisitions create substantial intangible assets that are amortized through cost of revenue and operating expenses.

Impact: Reported operating income and margin

Goodwill and long-lived asset impairment

The company has a large acquisition footprint, so impairment assumptions are important if market conditions or expected synergies change.

Impact: Potential non-cash charges

Business combinations

Acquisition accounting affects asset valuation, deferred revenue, and future amortization patterns.

Impact: Balance sheet and future earnings

Income taxes

Tax estimates and jurisdictional mix can materially affect net income in a global business.

Impact: Effective tax rate and earnings

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026