How profitable is Broadcom Inc. (AVGO)?

In FY 2025 (10-K), AVGO converted $63.9B of revenue into a 67.8% gross margin, 39.9% operating margin, and $26.9B in free cash flow (42.1% FCF margin).

Stock Ratings / Technology / AVGO / financials

SPCX (59) TSM (66) SKHY (64) MU (64) ⌘ Pro Terminal →

Broadcom Inc. (AVGO) Revenue-to-Profit Sankey Flow & SEC XBRL Financials

$322.23 -1.18% NASDAQ • Live Quote vs Prior Daily Close (Synced Snapshot) EXT / AFTER-HRS: $320.93

Broadcom Inc. (AVGO) carries a Roarable Rating of C+ (Hold) with 68/100 RQD Confidence. The composite score sits in the neutral Hold band (59–69), meaning current holders don’t need to panic-sell while prospective buyers can wait for a move into the 70+ Buy zone.

ROARABLE C+ • HOLD / WATCH Cap $1.56T

📤 Share Live RQD Speedometer Card: 𝕏 Post Reddit StockTwits ⬇ Live SVG Card

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🤖 Mara Quenwick • AI Quant Lead (Click for Instant Brief) Is AVGO stock a Buy, Hold, or Sell right now according to Roarable's RQD model?

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As of 2026-11-03, Broadcom Inc. (NASDAQ: AVGO) is rated C+ (Hold / HOLD) by Roarable's 5-pillar RQD engine with a composite confidence score of 68/100 at a spot price of $322.23 (-1.18% 1D, market cap $1.56T). Pillar breakdown: Fundamental Cash Engine 19/20, Institutional 13F & Options Flow 14/20, SEC Balance-Sheet Forensics 12/20, FRED Macro Regime Fit 12/20, and Executive Insider Alignment 11/20. Across 715 tracked Technology issuers, AVGO ranks #98 in composite RQD confidence.

✓ Pre-computed one-to-many AI Quant brief

🤖 Ellis Vennor • AI Peer & Flow Quant (Click for Instant Brief) How does AVGO compare to SPCX and TSM in the Technology sector?

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Within the Technology sector (Semiconductors & Infrastructure Software), AVGO carries a Roarable C+ (68/100 RQD), trailing P/E of 41.0x, gross margin of 68.8%, and ROIC of 24.7%. By comparison, SPCX (Space Exploration Technologies Corp.) holds a C- grade (59/100 RQD, P/E 21.7x, ROIC 58.3%, cap $1.83T) and TSM (Taiwan Semiconductor Manufacturing Company Ltd.) posts a C+ grade (66/100 RQD, P/E 21.7x, ROIC 14.9%, cap $2.11T). Among the 5-stock peer group, SPCX leads on earnings multiple (21.7x) while SPCX leads on capital efficiency (58.3% ROIC).

✓ Pre-computed one-to-many AI Quant brief

🤖 Gideon Ashmere • AI SEC 10-K Forensics (Click for Instant Brief) What are the biggest fundamental strengths and SEC risk factors for AVGO?

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Per AVGO's SEC EDGAR XBRL 10-K filing (FY2025, filed 2025-12-18, CIK 0001730168), Broadcom Inc. generated $63.89B in revenue (+23.9% YoY), $23.13B in net income, and $26.91B in free cash flow against $171.09B in total assets and $67.12B in total debt. Key quantitative strengths: Strong cash generator (68.8% gross margin)—profits are backed by real money, not accounting tricks. Primary risk factors monitored: Priced at 41x earnings—high expectations leave less room for a lukewarm quarter. Latest SEC insider/13F disclosure shows Renaissance Technologies (Hedge Fund) executed a BUY of 940,000 shares ($333.8M) on 2026-10-18.

✓ Pre-computed one-to-many AI Quant brief

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INTERACTIVE SCENARIO DECK:

🛡️ Portfolio Crash X-Ray

EXT / AFTER-HRS: $320.94 (-0.40%)🧬 Dilution Drag (+1.57% YoY Shares)⚙️ Cash Engine: 19/20 (A+) • 42.1% FCF Margin

Verify 90D Bucket Audit →

📊 Historical Track Record: Scores of 68/100 (C+) historically posted market-perform odds over rolling 90-day windows (+1.8% avg 90D alpha vs SPY • 56.9% hit rate — wait for RQD ≥ 70 breakout).

Audit Bucket Track Record →

RQD QUANT TACHOMETERHOLD / WATCH • C+

JEV AI Jury Split (Battleground)

Cash

SEC

Whale

Impersonal quantitative research (0–100 RQD rubric) — not individualized investment advice. Past performance does not guarantee future results. Full Disclaimer

5-PILLAR SNOWFLAKE RADARRw B · Rk C-

Each axis scored 0–20

12M PRICE TARGET CONE+19% Base Target

WHALE OPTIONS POSITIONING:59% Calls ($13.2M)

41% PutsMax Pain: $350.00

Deterministic 5-Pillar Attribution (68/100 Composite)

🔍 WHY AVGO SCORES 68/100 (C+) — TOP 3 DRIVERS2 Bullish Pillars + #1 Risk Drag

▲ #1 Bullish Driver: Cash Engine Quality+19/20 pts (28% of score)

SEC XBRL FY 2025 (10-K): 42.1% FCF Margin ($26.91B FCF) & 67.8% Gross Margin

▲ #2 Bullish Driver: Whale & Options Positioning+14/20 pts (21% of score)

CBOE Tape: 59% Call / 41% Put flow • Max Pain $350.00

▼ #1 Drag / Risk Factor: Insider Conviction & Share Dilution11/20 pts (-9 pt drag)

Dilution Drag (+1.57% YoY Shares) & executive Form 4 sales trim 9 pts from alignment

📈 PAST 4 QUARTERS RQD vs SUBSEQUENT RETURNQ1 → Q2 → Q3 → Current

Q1 (-3Q)

Grade B+$389.28-8.1% Next Q

Q2 (-2Q)

Grade B$357.90+1% Next Q

Q3 (-1Q)

Grade B$361.54-10.9% Next Q

Current

Grade C+$322.23+1.8% Hist 90D α

Trajectory: B+ (76) → C+ (68)Full Audit →

⚔️ ADVERSARIAL OPPOSING CASE & FORENSIC KILL-SWITCH (WHY THE BULL/BEAR THESIS COULD FAIL)GIDEON ASHMERE // FORENSIC SHORT & KILL-SWITCH DOSSIER

⚔️ Adversarial Opposing Case: Why the AVGO Bull Thesis Could Fail

Gideon Ashmere Forensic Desk →

Broadcom's FY2025 10-K (accession 0001730168-25-000121) reflects an escalating risk profile marked by an aggressive strategic pivot toward AI hardware integration, custom XPUs, and system rack deployments. Management materially expanded cautionary language regarding external SEC disclosures, removed references to target margin exclusivity, and broadened operational dependency to hyperscalers deploying large-scale frontier AI clusters. This architectural shift from pure-play high-margin merchant silicon to complex rack-level hardware solutions introduces execution vulnerabilities and margin compression exposure.

⚠️ Forensic Kill-Switch #1

Priced at 41x earnings—high expectations leave less room for a lukewarm quarter.

⚠️ Forensic Kill-Switch #2

Recent SEC filings added new risk-factor disclosures that warrant keeping an eye on margins.

⚠️ Forensic Kill-Switch #3

Technical & Forensic Kill-Switch: A daily close below the 50D SMA ($362.83) or 200D SMA ($214.25) invalidates the momentum regime and cuts Target Base ($383.56) toward Bear Floor ($337.10).

🎲 LIVE PREDICTION MARKET ODDS TIED TO $AVGO• $4.8M Crowd Pool • Kalshi / Polymarket Composite

Contract: “AVGO Beats Next Quarterly Revenue & EPS Consensus + Hyperscaler AI CapEx Holds Record Pace”

YES 68%NO 32%Trade / Inspect Odds →

VISUAL REVENUE-TO-PROFIT SANKEY WATERFALL • FY 2025 (10-K)

How AVGO Turns Every Dollar of Sales Into Real Bottom-Line Profit

Free Cash Flow:$26.91B (42.1% FCF Margin)

Multi-Year SEC EDGAR XBRL Revenue, Net Profit & Free Cash Flow Trajectory

■ Revenue■ Net Profit■ Free Cash Flow

FY21

Rev $27.45B

FY22

Rev $33.20B

FY23

Rev $35.82B

FY24

Rev $51.57B

FY25

Rev $63.89B

Fiscal Year	Revenue	Gross Margin	Op Margin	Net Profit	Free Cash Flow	ROIC %
FY 2025	$63.89B	67.8%	39.9%	$23.13B	$26.91B	15.2%
FY 2024	$51.57B	63%	26.1%	$5.89B	$19.41B	8.3%
FY 2023	$35.82B	68.9%	45.3%	$14.08B	$17.63B	26.1%
FY 2022	$33.20B	66.5%	42.8%	$11.49B	$16.31B	22.6%
FY 2021	$27.45B	61.4%	31%	$6.44B	$13.32B	12.8%
FY 2020	$23.89B	56.6%	16.8%	$2.66B	$11.60B	5.5%

SEC 10-K YEAR-OVER-YEAR FINE-PRINT DIFF SCANNERRisk Trajectory: ESCALATING

EXTERNAL SEC DISCLOSURE SCOPE & CAUTIONARY LANGUAGE (MEDIUM)

Broadcom's legal team expanded its forward-looking safe harbor shield beyond the 10-K to incorporate external and periodic SEC filings. This defensive modification flags increasing volatility in operating performance and hedges against impending intra-year disclosures, earnings revisions, and regulatory friction across its integrated software and semiconductor portfolio.

MARGIN PROFILE DILUTION & PRODUCT SCOPE EXPANSION (CRITICAL)

Broadcom scrubbed explicit language anchoring product development to markets where it can 'earn attractive margins.' The replacement with qualitative integration language reflects structural dilution from lower-margin rack integration, custom ASIC packaging, and pass-through optical/memory subsystem costs tied to hyperscaler AI hardware contracts.

HYPERSCALER AI CLUSTER EXPOSURE & HARDWARE SYSTEM INTEGRATION (CRITICAL)

Management transitioned disclosures from legacy enterprise SAN switching to system-level AI compute racks and custom XPUs. Building complete server racks and systems exposes Broadcom to severe customer concentration risk among hyperscalers (Alphabet, Meta), complex supply chain liabilities at foundry partners (TSMC), and higher working capital commitments compared to traditional fabless chip sales.

ON-DEMAND RQD QUANT WORKSHOP • SPONSORED / PARTNER SPOTLIGHTHosted by Perry Belcher & Roarable Forensic Quant Desk

Red-Light Warning Desk: Spotting SEC Cash-Flow & Dilution Risks Before Downgrades (Featuring AVGO)

✓Walkthrough of AVGO's RQD Radar, SEC cash-conversion gap & downside invalidation levels
✓3 asymmetric Bear/Hedge frameworks when 10-year Treasury yields stay elevated
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AVGO // CANDLESTICK & AUTO-TRENDLINE WORKSTATION6M: -25.06%🛡️ HOLDING TREND SUPPORT

2026-11-03O $345.0H $345.0L $322.2C $322.2VOL 36.51M

RES: $348.4SUP: $313.8SMA50: $362.8SMA200: $214.3

PRIMARY-SOURCE FORENSICS, SECOND-ORDER LINKS & AI ANALYST DESK

AVGO Dilution Monitor, Expectations Hurdle, Butterfly Connections & Policy Exposure

🦋 AVGO Butterfly Map → + Track AVGO →

Share Count & Dilution Monitor

+ 1.57% YoY Shares

SEC XBRL FY2024 → FY2025: Active share-count expansion (monitor SBC & convertibles).

Reverse-DCF Expectations Hurdle

31.1%/yr Implied 5Y Growth

vs. +23.9% actual YoY revenue growth (assuming 9.25% cost of equity & 16.5x terminal multiple).

Ellis Vennor Setup Ledger

INVALIDATED · Custom ASIC Base Flag Continuation

Trigger: $354.66 • Invalidation: $326.37

🦋 Documented & Second-Order Butterfly Connections Open Graph →

TSM → AVGO Confirmed Filing

Broadcom explicitly discloses in its Form 10-K that TSMC manufactures substantially all of its leading-edge Tomahawk/Jericho Ethernet switches and custom hyperscale AI XPU wafers.

AVGO → GOOGL Confirmed Filing

Broadcom co-engineers custom AI XPU/TPU silicon IP, SerDes high-speed interconnects, and CoWoS packaging logistics enabling Alphabet to scale internal Gemini training and Search AI inference.

AI Analyst Theses, Washington Policy & Company Video 💡 The Second-Order AI Bottleneck: Hyperscaler CapEx Is Shifting Pricing Power to Custom Networking, Switchgear & Baseload IPPs (Mara Quenwick) 💡 What Changed Our Mind: High-Speed 800G AI Ethernet Caught Up Faster Than Our Initial Model Assumed (Mara Quenwick) 🎬 Curated Video: Nvidia earnings are set up to 'not disappoint': How to play options (Yahoo Finance) →

DETERMINISTIC MULTI-FACTOR EQUITY AUDIT • SEC EDGAR XBRL × RQD PEER BENCHMARK

📊 Quantitative Sector Peer Comparison, SEC Filing Delta & Investment FAQ (AVGO)

Technology Rank #98 of 715 ⚔️ SPCX vs AVGO Full Matrix →

1. Head-to-Head Technology Peer Comparison (AVGO vs. SPCX, TSM, SKHY, MU)

Industry: Semiconductors & Infrastructure Software (1 Tracked Issuers)

Across 715 tracked Technology securities in the Roarable RQD universe, Broadcom Inc. (AVGO) ranks #98 by composite RQD confidence (68/100, grade C+) and #6 by equity capitalization ($1.56T). Within this direct 5-issuer industry benchmark cohort, SPCX leads on earnings valuation at 21.7x trailing P/E, while SPCX leads on capital efficiency and profitability with 58.3% ROIC and — gross margin. AVGO currently leads its immediate peer cohort in composite quantitative strength at 68/100 (C+).

Ticker / Company	Roarable Grade	RQD Score	Trailing P/E	Gross Margin	ROIC	1D Change	Market Cap	Head-to-Head
AVGO ACTIVE Broadcom Inc.	C+	68/100	41.0x	68.8%	24.7%	-1.18%	$1.56T	Benchmark Subject
SPCX Space Exploration Technologies Corp.	C-	59/100	21.7x	—	58.3%	+1.23%	$1.83T	/spcx-vs-avgo →
TSM Taiwan Semiconductor Manufacturing Company Ltd.	C+	66/100	21.7x	—	14.9%	-1.85%	$2.11T	/tsm-vs-avgo →
SKHY SK hynix Inc.	C	64/100	21.7x	—	14.9%	-1.00%	$1.09T	/skhy-vs-avgo →
MU Micron Technology Inc.	C	64/100	123.8x	39.8%	9.1%	-5.78%	$1.00T	/mu-vs-avgo →

2. Multi-Year SEC XBRL Revenue, Cash Flow & Balance-Sheet Trajectory (FY2021–FY2025)

SEC EDGAR 10-K • FILED 2025-12-18 • CIK 0001730168 ↗

In its most recent audited fiscal period (FY2025, filed 2025-12-18), Broadcom Inc. (AVGO) reported GAAP revenue of $63.89B (+23.9% vs. FY2024 revenue of $51.57B , and +132.7% cumulative change since FY2021) , GAAP net income of $23.13B, operating cash flow of $27.54B, and free cash flow of $26.91B (+38.6% YoY). On the balance sheet, AVGO closed FY2025 with $171.09B in total assets against $67.12B in total debt (Altman Z-Score: 12.23, Piotroski F-Score: 8/9).

Fiscal Period	Filing Date	Revenue	Net Income	Operating Cash Flow	Free Cash Flow	Total Assets	Total Debt
FY2025 (FY)	2025-12-18	$63.89B	$23.13B	$27.54B	$26.91B	$171.09B	$67.12B
FY2024 (FY)	2024-12-18	$51.57B	$5.89B	$19.96B	$19.41B	$165.65B	$69.85B
FY2023 (FY)	2023-12-18	$35.82B	$14.08B	$18.09B	$17.63B	$72.86B	$39.18B
FY2022 (FY)	2022-12-20	$33.20B	$11.49B	$16.74B	$16.31B	$73.25B	$39.48B
FY2021 (FY)	2021-12-14	$27.45B	$6.44B	$13.76B	$13.32B	$75.57B	$39.70B

3. AVGO Data-Verified Investor FAQ (RQD Rating, Sector Peers, SEC Forensics & Technicals)

✓ SCHEMA.ORG FAQPAGE JSON-LD ENABLED

Is AVGO stock a Buy, Hold, or Sell right now according to Roarable's RQD model?

How does AVGO compare to SPCX and TSM in the Technology sector?

What are the biggest fundamental strengths and SEC risk factors for AVGO?

Where is AVGO trading relative to its 50-day, 200-day, and 52-week technical levels?

AVGO last traded at $322.23 (-1.18% on volume of 20,327,281 shares), positioning the stock -11.19% below its 50-day simple moving average ($362.83) and +50.40% above its 200-day simple moving average ($214.25). Across its 52-week range of $289.96 to $495.00, AVGO sits at the 15.7% percentile with a 14-day RSI of 41.3 (NEUTRAL RANGE) and an implied next-earnings move of ±9.4% ($291.94 to $352.52).

Direct Sub-Reports: AVGO RQD Cockpit AVGO 12M Forecast AVGO Earnings & Move AVGO Dividends & DRIP AVGO Insiders & 13F AVGO Whale Options AVGO Profit Sankey AVGO News & Why

ROARABLE RATING BRIEF • RQD 68/100 (C+) ✓ SEC XBRL & RQD VERIFIED

AVGO — Broadcom Inc.: What the Facts Mean to a Prospective Investor

Methodology: RQD v6.2 Deterministic 5-Pillar & SEC XBRL Audit

Updated: 2025-12-18

1. Roarable Rating Brief: What This Means to a Prospective Investor

Broadcom Inc. (AVGO) earns a live Roarable RQD composite score of 68/100, corresponding to a C+ letter grade (Roarable Hold) at a spot price of $322.23 (-1.18% 1D, market capitalization $1.56T).

Fundamental Cash Engine (19/20): Anchored by return on invested capital (ROIC) of 24.7%, gross margin of 68.8%, operating margin of 48.0%, and free cash flow yield of 2.51%.
Whale 13F & Options Flow (14/20) + Insider Conviction (11/20): Tracks institutional 13F accumulation, CBOE options call/put positioning, and SEC Form 4 / Congressional PTR filings.
Macro Regime Fit (12/20) + Forensic Balance Sheet (12/20): Incorporates a 1.82x equity beta, Altman Z-Score of 12.23, Piotroski F-Score of 8/9, and Debt/Equity of 0.61x.

2. Business Model, Unit Margins & SEC Financial Trajectory

., Tomahawk/Jericho high-radix Ethernet switching silicon, optical interconnects, and RF wireless filters.. Per the Butterfly graph, its named customers include Alphabet (custom TPU silicon), Apple (RF front-end filters and Wi-Fi/Bluetooth combo chips), and Meta (MTIA custom AI silicon and Tomahawk 5 switching).

In its latest audited SEC EDGAR 10-K filing for FY2025 (filed 2025-12-18), Broadcom Inc. (AVGO) reported $63.89B in annual revenue (up from $51.57B in FY2024, +23.9% YoY) and $23.13B in GAAP net income. Over the multi-year SEC filing window from FY2021 ($27.45B revenue, $6.44B net income) through FY2025, AVGO scaled operating cash flow to $27.54B and free cash flow to $26.91B, backed by $171.09B in total assets against $67.12B in total debt.

3. Institutional Bull vs. Bear Thesis & Valuation Tradeoff

🐂 Primary Bull Case (C+ • RQD 68/100): Strong cash generator (68.8% gross margin)—profits are backed by real money, not accounting tricks. Hyperscale Custom Silicon Acceleration and Margin Expansion With Fundamental Cash Engine at 19/20 and Institutional Whale Flow at 14/20, sustained execution supports upside toward the upper end of the $289.96 – $495.00 52-week range.
🐻 Primary Bear Case & Valuation Risk: Priced at 41x earnings—high expectations leave less room for a lukewarm quarter. Investors must weigh 41.0x trailing P/E and 34.6x EV/EBITDA against 48.0% operating margins and a 1.82x macro beta.

4. 2nd-Order Butterfly Ripples & Key Questions to Watch

Per the Butterfly graph, the largest upstream dependency is TSMC, classified as CRITICAL and cited as fabricating approximately 90% of Broadcom's wafers. The graph states that any TSMC wafer pricing surcharge or CoWoS substrate bottleneck directly governs AI silicon delivery schedules. Per the graph, Synopsys/Cadence EDA and SerDes IP is a HIGH-criticality supplier relationship.

On the downstream side, the graph lists Alphabet (CRITICAL, 18% revenue exposure), Apple (CRITICAL, 17%), and Meta (HIGH, 11%). The graph notes that Alphabet's XPU exposure carries lower gross margin than infrastructure software, creating mix dilution even as operating profit dollars rise. Per the graph, Alphabet diversifying future TPU generations to other ASIC partners would cap Broadcom's XPU concentration.

Competitive ripples per the graph include NVIDIA (CRITICAL, 48%), Marvell (HIGH, 45%), and enterprise virtualization alternatives such as Red Hat, Nutanix, and public cloud native stacks (HIGH, 38%). The graph's competing explanation is that VMware software cash flow partially buffers consolidated free cash flow against physical foundry disruption, cited as roughly 40%+ of consolidated revenue.

Key Question #1: Can AVGO sustain or expand its 48.0% operating margin and 24.7% ROIC against Semiconductors & Infrastructure Software peers over the next 4 quarters?
Key Question #2: Following FY2025 revenue of $63.89B and free cash flow of $26.91B, how will capital allocation balance growth reinvestment against $67.12B in total debt?
Key Question #3: How sensitive is AVGO's 17.0x forward P/E multiple to Technology capital spending cycles and macro interest-rate shifts (Beta 1.82x)?

AVGO Live News Feed, Press Releases & Catalyst Wire

Real-time company headlines, analyst actions, and sector developments for Broadcom Inc. (AVGO) • Click "Debate This Headline" to argue it in the Roar Pit below

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🟡 MARKET WIRE Yahoo Finance • 21h ago

Jim Cramer Sees a Telling Change in Broadcom’s (AVGO) Stock