Broadcom Inc. is a global technology leader that designs, develops, and supplies a broad range of semiconductor, enterprise software, and security solutions.
Overview:
- Broadcom serves critical markets including cloud, data center, networking, broadband, wireless, storage, industrial, and enterprise software.
- Their product portfolio encompasses both semiconductor and infrastructure software offerings
Company History:
- The company’s origins trace back to HP Associates, a semiconductor products division of Hewlett-Packard, established in 1961.
- It separated from Hewlett-Packard during the Agilent Technologies spinoff in 1999.
- In 2005, Avago Technologies acquired the Semiconductor Products Group of Agilent Technologies and formed Avago Technologies.
- Avago Technologies later acquired Broadcom Corporation in 2016, adopting the name Broadcom Limited.
The merged entity eventually became Broadcom Inc.
Product Focus:
- Broadcom’s offerings span a wide spectrum:
- Semiconductor Products: These include chips for data centers, networking, broadband, wireless, and storage.
- Infrastructure Software: Solutions for enterprise software and security.
Financial Snapshot (2022):
- Revenue: $33.20 billion
- Operating Income: $14.23 billion
- Net Income: $11.50 billion
- Total Assets: $73.25 billion
- Total Equity: $22.71 billion
- Number of Employees: Approximately 20,000
Leadership:
- Mr. Hock E. Tan (President, CEO, & Executive Director)
- Ms. Kirsten M. Spears (CFO & Chief Accounting Officer)
- Mr. Mark D. Brazeal (Chief Legal & Corporate Affairs Officer)
- Dr. Charlie B. Kawwas Ph.D. (President of Semiconductor Solutions)
Business Focus:
- Broadcom specializes in complex digital and mixed-signal complementary metal oxide semiconductor (CMOS) based devices and analog III-V based products.
- Set-top box system-on-chips (SoCs)
- Central office/consumer premise equipment SoCs for cable, digital subscriber line, and passive optical networking
- Wireless local area network access point SoCs
- Ethernet switching and routing custom silicon solutions
- Embedded processors and controllers
- Optical and copper physical layer devices
- Fiber optic components and RF semiconductor devices
- RF front-end modules and filters
- Wi-Fi, Bluetooth, and global positioning system/global navigation satellite system SoCs
- Custom touch controllers
- Inductive charging solutions
History:
- Origin in Hewlett-Packard:
- The company that would later become Broadcom Inc. had its roots in HP Associates, a semiconductor products division of Hewlett-Packard.
- In 1961, HP Associates was established as part of Hewlett-Packard.
- The division eventually separated from Hewlett-Packard during the Agilent Technologies spinoff in 1999.
- Founding and Growth:
- Broadcom Corporation was founded by the professor-student duo of Henry Samueli and Henry Nicholas from UCLA in 1991.
- Initially headquartered in Westwood, Los Angeles, the company later moved to Irvine, California in 1995.
- Broadcom focused on developing and supplying a wide range of semiconductor solutions.
- Formation of Avago Technologies:
- In 2015, Avago Technologies acquired Broadcom Corp., leading to the formation of Broadcom Limited.
- This strategic move brought together two major players in the semiconductor industry.
- The combined entity continued its legacy of innovation and technological leadership.
- Broadcom Inc. Today:
- Broadcom Inc. is now a global technology leader that designs, develops, and supplies semiconductor, enterprise software, and security solutions.
- Their impact extends across data centers, networking, software, broadband, wireless, storage, and industrial sectors.
- With a commitment to cutting-edge technology, Broadcom remains at the forefront of innovation.
Stock performance:
- Current Stock Price: AVGO closed at $1,029.24 on the last trading day.
- 52-Week Range: The stock has fluctuated between $540.92 and $1,079.39 over the past year.
- Year-to-Date Return: So far this year, AVGO has gained approximately 69.34%.
- Total Return (12 Months): Over the past 12 months, AVGO’s total return has been 73.35%, outperforming the S&P 50
- 0’s return of 13.71% during the same period.
Analyst Consensus and Price Target:
- Wall Street analysts have a Strong Buy consensus rating on Broadcom.
- The average price target for AVGO is $1,044.58, suggesting a further upside of approximately 15.6% from the current price.