Stock price movement is a key factor for investors. Over time, stock performance can impact your portfolio and help you compare results across industries.
The fear of missing out (FOMO) also influences investing decisions, especially for tech giants and consumer-facing companies.
What if you had invested in Broadcom Inc. (AVGO) ten years ago? It may have been challenging to hold onto AVGO throughout the years, but if you did, how much would your investment be worth today?
Broadcom Inc.: A look at the business
Broadcom is a leading designer, developer, and global supplier of semiconductor and infrastructure software solutions. The company focuses on complex digital and mixed-signal complementary metal-oxide semiconductor (CMOS) devices and analog III-V-based products.
Headquartered in San Jose, CA, Broadcom’s semiconductor solutions are found in products like data center networking, home connectivity, set-top boxes, broadband access, telecommunications, smartphones, base stations, and power generation systems.
Broadcom’s infrastructure software solutions help customers manage applications across mainframe, distributed, mobile, and cloud platforms. The company’s cybersecurity division, acquired from Symantec, provides endpoint, network, information, and identity security solutions.
Additionally, Broadcom offers mission-critical fiber channel storage area networking (FC SAN) products, including modules, switches, and subsystems.
Broadcom’s growth and strategic acquisitions
Broadcom has aggressively pursued acquisitions to expand beyond semiconductors and strengthen its infrastructure software presence.
One of its most significant moves was acquiring VMware in 2023 for $61 billion, further solidifying its position in enterprise software and cloud computing.
In the fiscal year 2024, Broadcom reported a revenue of approximately $39 billion, reflecting strong growth across its semiconductor and software businesses.
The company operates in two segments:
- Semiconductor Solutions (which accounted for about 75% of total revenue in 2024)
- Infrastructure Software (which contributed around 25% of total revenue)
Broadcom’s semiconductor business includes networking, broadband, storage, and wireless solutions, while its software division encompasses mainframe, security, and automation tools.
Competition in the market
Broadcom faces stiff competition in both the semiconductor and software markets.
In semiconductors, its rivals include Intel, Qualcomm, Nvidia, Texas Instruments, Marvell, MediaTek, and Skyworks.
In infrastructure software, it competes with Microsoft, Oracle, Cisco, IBM, VMware (which it now owns), and CrowdStrike.
Investment performance over the past decade
Investing in Broadcom ten years ago would have paid off significantly.
According to updated calculations, a $1,000 investment made in February 2015 would be worth approximately $21,500 as of February 2025, representing a 2,050% gain. This excludes dividends but includes stock price appreciation.
For comparison:
- The S&P 500 increased around 270% over the same period.
- The price of gold rose 32% in that timeframe.
Future outlook for AVGO
Analysts remain optimistic about Broadcom’s future.
The company benefits from strong demand for networking and broadband solutions. Growth in AI, cloud computing, and 5G infrastructure also contributes to its success. The integration of VMware is expected to drive software revenue and profitability.
Despite its strong performance, Broadcom faces challenges, including rising competition and high debt levels from recent acquisitions. However, analysts still see upside potential for AVGO stock.
Should you invest?
Broadcom’s stock has climbed 8.5% over the past month. Additionally, no analysts have lowered their earnings estimates for fiscal 2025, while multiple have raised their projections.
For investors looking for long-term growth, Broadcom continues to be a strong player in the semiconductor and software industries.
The best stocks for 2025
Looking for high-potential stocks? Experts recently compiled a list of seven elite stocks with the best chance for early price pops.
Since 1988, these picks have outperformed the market by more than 2X, averaging 25.4% gains per year.
Broadcom may be one to watch, but make sure to explore other top-rated stocks as well!
