How to Invest in Broadcom

How to buy Broadcom stock

Anyone can buy shares of Broadcom, which trades on the Nasdaq Stock Exchange under the stock ticker AVGO. However, you'll need to take a few steps before you buy the semiconductor stock. This easy-to-follow guide will show you how to invest in stocks and add the technology infrastructure company to your portfolio.

Should I invest in Broadcom?

Investing is personal. You want to build a portfolio that reflects your values, risk tolerance, and return objectives -- not every stock will be right for your situation.

Here are some reasons you might want to invest in Broadcom:

• You're excited about Broadcom's future, especially how AI could accelerate demand for semiconductors in data centers.
• Buying Broadcom stock would help diversify your portfolio.
• You think Broadcom's acquisition of VMWare will create significant shareholder value in the coming years.
• You believe Broadcom trades at a relatively attractive valuation, given its growth prospects.
• You want to invest in companies that pay a growing dividend.
• You believe Broadcom can continue delivering market-crushing total returns.

On the other hand, here are some reasons Broadcom might not be the best fit for your portfolio:

• You're unsure what Broadcom does or how it makes money.
• You already own several semiconductor and infrastructure software companies.
• Broadcom doesn't offer a dividend yield that is high enough for your needs.
• You're seeking a company much earlier in its growth cycle than Broadcom.
• You're concerned that the VMWare deal might not create value for shareholders.
• You're unsure whether AI will live up to its current hype.

Is Broadcom profitable?

Broadcom is an immensely profitable company. In its 2024 fiscal year, the semiconductor and infrastructure software solutions provider grew its revenue by 44% to a record $51.6 billion. The company benefited from a 20% increase in AI revenue ($12.2 billion of its $30.1 billion of semiconductor revenue) and its acquisition of VMWare.

While its net income declined from $14.1 billion to $5.9 billion, that was due largely to restructuring charges. Its non-GAAP net income increased by 29% to $23.7 billion, while its free cash flow grew 10% to $19.4 billion.

The strength of the company's AI-driven semiconductor sales has it on track to deliver another record year of revenue and profitability in 2025. As of October 2025, there has not been an earnings call for FY25.

Does Broadcom pay a dividend?

Broadcom pays a quarterly dividend. As of early 2025, the semiconductor company paid a quarterly dividend of 0.67%. With its share price in the $330s in late 2025, Broadcom's growth is on par with other stocks in the AI sector.

The company has an excellent track record of increasing its dividend. It raised its payout by 11% for its 2024 fiscal year, its 14th consecutive annual increase since it started paying dividends in its 2011 fiscal year. However, as of 2025, Broadcom has slashed its payouts by almost 90%.

ETFs with exposure to Broadcom

Not everyone wants to actively manage a portfolio of hand-selected stocks. People who prefer a more passive approach can invest in exchange-traded funds (ETFs). ETFs enable anyone to invest in a company passively through a thematic fund or a broad market index.

Broadcom is a widely held stock. As of late 2025, 596 ETFs held 770.2 million shares of the technology infrastructure company. The Vanguard Total Stock Market ETF (VTI -1.14%) was the biggest holder. This specific fund charges a 0.03% ETF expense ratio.

Other notable ETFs holding Broadcom shares were:

• Amplify Cybersecurity ETF (HACK -0.19%): This ETF, focused on cybersecurity stocks, had 26 holdings in late 2025. Broadcom was its largest holding, accounting for 9.85% of its net assets. The ETF had a 0.6% expense ratio.
• First Trust Nasdaq Semiconductor ETF (FTXL -2.12%): This ETF focuses on semiconductor stocks listed on the Nasdaq. In late 2025, it had 32 holdings, of which Broadcom was its thirds largest, at 7.68% of its net assets. The fund has a 0.6% expense ratio.
• iShares Semiconductor ETF (SOXX -2.61%): This fund provides exposure to the U.S. semiconductor sector. It had 31 holdings in late 2025, with Broadcom as its second largest holding at 7.71% of its net assets. The fund has a 0.57% expense ratio.

Will Broadcom stock split?

Broadcom didn't have an upcoming stock split as of early 2025. However, the technology infrastructure company completed a 10-for-1 stock split in June 2024. That was its only stock split since Avago Technologies acquired Broadcom (and took on its name) in 2015.

Avago Technologies hadn't split its stock before acquiring Broadcom. However, the original Broadcom had split its stock three times: a 2-for-1 split in 1999, a 2-for-1 split in 2000, and a 3-for-2 split in 2006.

Broadcom likely won't complete another stock split anytime soon. While its stock price was well over $300 a share in late 2025, it was more than $1,000 when the company last split its stock. However, if shares continue rallying and reach that level again, Broadcom could complete another stock split.

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