Broadcom (Nasdaq: AVGO) is a semiconductor company competing in a wide variety of sectors. They make a plethora of process-specific chips for use in industrial, wireless, storage, networking, infrastructure, cyber-security, artificial intelligence and cloud-related sub-divisions. What makes Broadcom different from its competitors is that it out-sources its manufacturing and can continuously create and maintain products and services. It has a gross margin of around 75% and a return on equity of 22%. Its businesses print money, in the last twelve months it recorded revenue of $42.6bn and net income of $10.2bn. it boast of “26 Category-Leading Semiconductor and Infrastructure Software Divisions” and more than 23000 patents. Broadcom has a long history of acquiring and expanding its offerings and has shown time and time again that their management and capital-resourcefulness are top-notch.
Net revenue:
FY23: $35.819bn
FY22: $33.203bn
FY21: $27.450bn
FY20: $23.888bn
FY19: $22.597bn
Guidance FY24: $50b
Free Cash Flow (NON-GAAP):
FY23: $17.633bn
FY22: $16.312bn
FY21: $13.321bn
FY20: $11.598bn
FY19: $9.265bn
Dividend:
-1.43% forward yield
-35% CAGR from FY16 to FY24
Research & Development:
FY23: $5.3bn
Balance sheet:
Total Debt (TTM): $40.46bn
Total Cash (TTM): $11.11bn
Artificial intelligence Significance: “Their products are integral for building the powerful computing systems that fuel AI algorithms. The company’s recent earnings report highlights the significance of AI to its bottom line. Revenue from its AI products alone reached a record $3.1 billion during the second quarter.”
*I own and recommend shares of AVGO*
Devlin Demontigny 