Broadcom (AVGO -0.85%) has grown into one of the world's largest technology companies. It develops and sells semiconductors and infrastructure software solutions, and its products are crucial to the digital economy.
NASDAQ: AVGO
Key Data Points
Both businesses are benefiting from strong growth tailwinds. Its semiconductor segment is capitalizing on robust demand from the increasing adoption of artificial intelligence (AI). Broadcom could have a lot more growth ahead, and this upside potential has many investors interested in buying its stock. Here's everything you need to know about Broadcom and how to add the semiconductor stock to your portfolio.
Semiconductor
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.
Stock
- Open your brokerage account: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
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%.
The bottom line on Broadcom
Broadcom is a leading global technology company. Its semiconductor business is benefitting from AI-powered demand, while its infrastructure software solutions segment is getting an acquisition-driven boost from VMWare.
These catalysts should enable the company to grow its earnings and dividends at above-average rates, which could enable Broadcom to continue producing strong total returns. These factors make it a potentially appealing investment opportunity.
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