We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's How Much You'd Have If You Invested $1000 in Broadcom Inc. a Decade Ago
Read MoreHide Full Article
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Broadcom Inc. (AVGO - Free Report) ten years ago? It may not have been easy to hold on to AVGO for all that time, but if you did, how much would your investment be worth today?
Broadcom Inc.'s Business In-Depth
With that in mind, let's take a look at Broadcom Inc.'s main business drivers.
Broadcom is a premier designer, developer and global supplier of a broad range of semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor (CMOS) based devices and analog III-V based products.
Headquartered in San Jose, CA, Broadcom’s semiconductor solutions are used in end products such as enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays.
Broadcom’s infrastructure software solutions enable customers to plan, develop, automate, manage, and secure applications across mainframe, distributed, mobile, and cloud platforms. The company’s Symantec cyber security solutions portfolio, include endpoint, network, information and identity security solutions.
Broadcom also offer mission critical fibre channel storage area networking (“FC SAN”) products and related software in the form of modules, switches and subsystems incorporating multiple semiconductor products.
Broadcom has been aggressively pursuing strategic acquisitions to diversify end markets beyond semiconductors and has been looking to strengthen presence in the infrastructure software vertical particularly.
Broadcom reported revenues of $27.45 billion in fiscal 2021. The company has two reporting segments: Semiconductor solutions and Infrastructure software.
Semiconductor solutions accounted for 74.3% of fiscal 2021 revenues. Apart from Broadcom’s semiconductor solution product lines this segment includes IP licensing business.
Infrastructure software solutions accounted for 25.7% of fiscal 2021 revenues. The segment includes mainframe, BizOps, cyber security software solutions, and FC SAN businesses.
Broadcom faces stiff competition from Analog Devices, Cisco, Cree, Finisar, GlobalFoundries, Intel, Lumentum, MACOM, Marvell, Mediatek, NXP Semiconductors, Qorvo, Qualcomm, ON Semiconductor, Skyworks, Toshiba and Texas Instruments in the semiconductor solutions market.
In the infrastructure software market, it faces competition from Cisco, Atlassian, CrowdStrike, CyberArk, IBM, Microsoft, salesforce, Oracle, Splunk, VMware.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Broadcom Inc. if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in March 2012 would be worth $16,105.80, or a 1,510.58% gain, as of March 21, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 217.85% and gold's return of 11.92% over the same time frame.
Going forward, analysts are expecting more upside for AVGO.
Broadcom is riding on continued strength across both Semiconductor solutions and Infrastructure software verticals. In fourth-quarter fiscal 2021, Semiconductor revenues benefited from higher demand for wireless solutions and continued momentum in networking and broadband solutions. Networking was driven by routing from service providers in the expansion of 5G networks for backhaul, metro, and call, as well as major share gains in ethernet network interface controllers within data centers. Synergies from acquisitions of CA and Symantec’s enterprise security business aided results. Further, an upbeat first quarter guidance on strong uptick in broadband, networking and wireless revenues is encouraging. Shares have outperformed the industry in the past year. However, increasing competition along with high debt levels are persistent overhangs.
The stock is up 5.24% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 11 higher, for fiscal 2022. The consensus estimate has moved up as well.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's How Much You'd Have If You Invested $1000 in Broadcom Inc. a Decade Ago
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Broadcom Inc. (AVGO - Free Report) ten years ago? It may not have been easy to hold on to AVGO for all that time, but if you did, how much would your investment be worth today?
Broadcom Inc.'s Business In-Depth
With that in mind, let's take a look at Broadcom Inc.'s main business drivers.
Broadcom is a premier designer, developer and global supplier of a broad range of semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor (CMOS) based devices and analog III-V based products.
Headquartered in San Jose, CA, Broadcom’s semiconductor solutions are used in end products such as enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays.
Broadcom’s infrastructure software solutions enable customers to plan, develop, automate, manage, and secure applications across mainframe, distributed, mobile, and cloud platforms. The company’s Symantec cyber security solutions portfolio, include endpoint, network, information and identity security solutions.
Broadcom also offer mission critical fibre channel storage area networking (“FC SAN”) products and related software in the form of modules, switches and subsystems incorporating multiple semiconductor products.
Broadcom has been aggressively pursuing strategic acquisitions to diversify end markets beyond semiconductors and has been looking to strengthen presence in the infrastructure software vertical particularly.
Broadcom reported revenues of $27.45 billion in fiscal 2021. The company has two reporting segments: Semiconductor solutions and Infrastructure software.
Semiconductor solutions accounted for 74.3% of fiscal 2021 revenues. Apart from Broadcom’s semiconductor solution product lines this segment includes IP licensing business.
Infrastructure software solutions accounted for 25.7% of fiscal 2021 revenues. The segment includes mainframe, BizOps, cyber security software solutions, and FC SAN businesses.
Broadcom faces stiff competition from Analog Devices, Cisco, Cree, Finisar, GlobalFoundries, Intel, Lumentum, MACOM, Marvell, Mediatek, NXP Semiconductors, Qorvo, Qualcomm, ON Semiconductor, Skyworks, Toshiba and Texas Instruments in the semiconductor solutions market.
In the infrastructure software market, it faces competition from Cisco, Atlassian, CrowdStrike, CyberArk, IBM, Microsoft, salesforce, Oracle, Splunk, VMware.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Broadcom Inc. if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in March 2012 would be worth $16,105.80, or a 1,510.58% gain, as of March 21, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 217.85% and gold's return of 11.92% over the same time frame.
Going forward, analysts are expecting more upside for AVGO.
Broadcom is riding on continued strength across both Semiconductor solutions and Infrastructure software verticals. In fourth-quarter fiscal 2021, Semiconductor revenues benefited from higher demand for wireless solutions and continued momentum in networking and broadband solutions. Networking was driven by routing from service providers in the expansion of 5G networks for backhaul, metro, and call, as well as major share gains in ethernet network interface controllers within data centers. Synergies from acquisitions of CA and Symantec’s enterprise security business aided results. Further, an upbeat first quarter guidance on strong uptick in broadband, networking and wireless revenues is encouraging. Shares have outperformed the industry in the past year. However, increasing competition along with high debt levels are persistent overhangs.
The stock is up 5.24% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 11 higher, for fiscal 2022. The consensus estimate has moved up as well.