Company Intro
Broadcom Inc is a global technology company operating in semiconductors and infrastructure software.
Its business is focused on high-value chips, networking solutions, data center hardware, and enterprise software. Broadcom’s products are widely used by cloud service providers, telecom companies, data centers, smartphone makers, and large enterprises.
A major strength of the company is that a large part of its earnings comes from long-term contracts and recurring software revenue, which provides strong business visibility.
Recent Price Movement and Market Sentiment
Recently, Broadcom’s share price has seen short-term pressure.
Over the last one month, the stock declined by around 9.38% and was trading near $349.
This fall is largely linked to broader market volatility and profit booking, rather than any major weakness in the company’s fundamentals. Pre-market trading also showed limited movement, indicating that investors are currently waiting for new triggers.
Financial Performance and Earnings
Broadcom’s financial performance has remained consistently strong over the years.
- Revenue growth:
Between 2021 and 2025, annual revenue increased from around $27 billion to nearly $60 billion, showing steady expansion. - Net income growth:
Net income improved from about $7–8 billion in 2021 to nearly $20 billion by 2025.
This growth has been supported by AI adoption, rising data center demand, and software integration.
The stock trades at a P/E ratio of around 73, which indicates a premium valuation, but strong earnings growth helps support this level.
Dividend and Balance Sheet Strength
Broadcom is a dividend-paying company with a dividend yield of around 0.74%.
The quarterly dividend is close to $0.65, offering steady income to long-term investors.
Despite large acquisitions in the past, the company maintains a strong balance sheet. Its healthy free cash flow gives Broadcom flexibility for future investments, debt management, and shareholder returns.
Share Price Performance Over Time
Broadcom’s stock has delivered strong returns across timeframes:
- Last 6 months: ~+26.92%
- Last 1 year: ~+50.90%
- Last 5 years: ~+698.93%
These numbers place Broadcom among the top-performing global technology stocks. Even though short-term corrections occur, the long-term trend has remained upward.
Our View
In our view, Broadcom’s business model is aligned with long-term structural growth themes such as AI, cloud infrastructure, and enterprise software demand.
Short-term volatility may continue, especially due to valuation concerns. However, strong earnings visibility and stable cash flows provide confidence for long-term investors. High valuation remains a risk, but consistent execution could balance it over time.
5-Year Share Price Target Outlook
| Year | Expected Price Range (USD) |
|---|---|
| 2026 | $380 – $420 |
| 2027 | $430 – $480 |
| 2028 | $490 – $550 |
| 2029 | $560 – $630 |
| 2030 | $650 – $720 |
These targets depend on sustained growth in AI-led demand and stable global technology spending.
Brokerage View
ICICI Securities believes that global semiconductor leaders like Broadcom could benefit from the AI-driven demand cycle over the medium to long term.
According to the brokerage, valuations may remain volatile in the short term, but diversified revenue streams and strong earnings visibility can help limit downside risks. Investors are advised to follow a staggered investment approach with a long-term horizon.
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Disclaimer
This article is for informational purposes only and should not be considered investment advice. Stock market investments are subject to risk. Please consult your financial advisor before making any investment decision.

Sumit Ghatala is a stock market researcher and financial content writer with over 8 years of experience tracking Indian equity markets, corporate earnings, and sectoral trends. He focuses on analysing company fundamentals, quarterly results, and broader market movements to provide readers with clear and structured insights.
Sumit’s work is aimed at simplifying complex market data and helping retail investors understand risks, opportunities, and long-term perspectives through balanced and reader-friendly analysis.