A few big names dominate tech stock headlines. This is rightfully so, but there are other tech companies worthy of investors' time and money.
Broadcom (AVGO 1.12%) is absolutely one. What was once a standard networking and software company is now a cutting-edge artificial intelligence (AI) custom chip builder partnering with the world's top hyperscalers.
NASDAQ: AVGO
Key Data Points
What separates Broadcom from the pack is its strong financial profile. The company's solid free cash flow, currently standing at $7.4 billion, has enabled it to pay dividends consistently while continuing to invest in growth. Recent earnings reinforce the narrative that Broadcom is a powerhouse.
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In its fourth-quarter 2025 report, Broadcom's revenues grew 28% year over year, and free cash flow was up 36%. Even if growth slows slightly in the coming quarters, Broadcom's robust balance sheet has given it a true economic moat. The company also announced a 10% increase in its dividend in its latest earnings.
Broadcom's stock is somewhat volatile, but historically patient Broadcom investors have been rewarded. As of Feb. 11, the stock has risen 45% over the past 12 months and an astounding 615% over the past five years. Broadcom's market cap has exploded to more than $1 trillion in this time as well, making it one of the largest companies in the world.
What's most impressive about Broadcom is its ability to execute and deliver. Broadcom's $162 billion backlog should ensure it has room to run for the next decade.
