Broadcom Inc.

Broadcom Inc. (NASDAQ: AVGO) is recognized as a global leader in technology, specializing in the design, development, and supply of a wide range of semiconductor, enterprise software, and security solutions. Its industry-leading portfolio supports essential markets such as cloud, data centers, networking, broadband, wireless, storage, industrial applications, and enterprise software.

Key Business Updates (for Q3FY25)

• Record Revenue Growth: Broadcom Inc. reported consolidated revenue of USD 15.95 billion for the third quarter of fiscal year 2025, representing a 22% year-over-year increase compared to USD 13.07 billion in the same period last year. This strong growth was primarily driven by demand for custom AI accelerators, networking, and VMware, with AI-related revenue accelerating 63% year-over-year to USD 5.2 billion.
• Segment Performance: Revenue from semiconductor solutions rose 26% year-over-year to USD 9.17 billion, contributing 57% of total revenue. Infrastructure software contributed USD 6.79 billion, up 17% from the prior year, and accounted for 43% of total revenue. The balanced contribution from both segments highlighted Broadcom’s diversified revenue base and sustained growth momentum across its core businesses.
• Profitability Expansion: On a GAAP basis, net income reached USD 4.14 billion, a sharp improvement from a loss of USD 1.88 billion in the prior-year quarter. Non-GAAP net income stood at USD 8.40 billion, up USD 2.28 billion from the previous year. Diluted earnings per share improved significantly to USD 0.85 on a GAAP basis, compared to a loss of USD 0.40 in Q3 FY24, while non-GAAP diluted EPS rose to USD 1.69 from USD 1.24.
• Strong Operating Leverage: Adjusted EBITDA increased 30% year-over-year to USD 10.70 billion, accounting for 67% of revenue. This reflected Broadcom’s strong operating efficiency and scalability as it capitalized on growing demand in AI and software solutions. The improvement underscored the company’s ability to convert top-line growth into robust profitability.
• Robust Cash Flow Generation: Cash flow from operations rose to USD 7.17 billion in the third quarter, compared to USD 4.96 billion a year earlier. After accounting for capital expenditures of USD 142 million, free cash flow reached USD 7.02 billion, representing 44% of revenue and marking a 47% year-over-year increase. Cash and cash equivalents at the end of the quarter stood at USD 10.72 billion, compared to USD 9.47 billion at the end of the previous quarter.
• Shareholder Returns: In line with its capital return strategy, Broadcom distributed USD 2.8 billion to shareholders during the quarter through a quarterly cash dividend of USD 0.59 per share, paid on June 30, 2025. The company reiterated its commitment to returning excess cash to shareholders while sustaining strong free cash flow generation.
• Outlook for Fourth Quarter Fiscal 2025: For the fourth quarter, Broadcom provided revenue guidance of approximately USD 17.4 billion, representing an expected 24% year-over-year increase. Adjusted EBITDA is projected to remain at 67% of revenue, consistent with the prior quarter. Management anticipates AI semiconductor revenue growth to continue, forecasting an increase to USD 6.2 billion in Q4, which would mark eleven consecutive quarters of AI revenue growth.

Technical Observation (on the daily chart):

Broadcom’s stock has broken out sharply, closing at USD 334.89 (+9.41%) with heavy volume, confirming strong bullish momentum. The price is well-supported by the 21-day (USD 303.22) and 50-day (USD 291.44) moving averages, which remain in an uptrend. With the RSI at 72, the stock is in overbought territory, suggesting potential short-term consolidation, but the overall trend remains bullish.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Watch’ rating has been given to Broadcom Inc. (NASDAQ: AVGO) at the closing market price of USD 334.89 as of September 05,2025. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is September 05,2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.