Broadcom Inc. (AVGO)

Broadcom is a global technology company that designs, develops and supplies semiconductor and semiconductor-based solutions as well as infrastructure software solutions. Its history spans more than 60 years and traces to AT&T/Bell Labs, Lucent and Hewlett-Packard, and it has grown through acquisitions including LSI, Broadcom Corporation, Brocade, CA, Symantec Enterprise Security and VMware. Its strategy centers on sustained technology leadership, with extensive internal research and development and strategic acquisitions, to deliver infrastructure technology products to business and government customers.

The semiconductor business spans complex digital and mixed signal devices, network interface cards, switches, subsystems and, in some cases, racks, sold into five end markets. Networking Connectivity covers custom silicon (XPUs and other ASICs), Ethernet switching and routing, Ethernet NIC controllers, physical layer devices and fiber optic components. Wireless Device Connectivity covers RF front-end modules and filters based on FBAR technology, Wi-Fi/Bluetooth combination chips, custom touch controllers and inductive charging ASICs. Servers and Storage Systems covers PCIe switches, SAS and RAID products, Fibre Channel adapters, and HDD and SSD chips. Broadband covers set-top box and broadband access SoCs. Industrial covers optocouplers, fiber optics, sensors, motion encoders, LED devices and Ethernet ICs. The infrastructure software business has five portfolios: Private Cloud (VMware Cloud Foundation, vSphere Foundation, Telco Cloud Platform, Private AI, Live Recovery, application networking and security, and Tanzu), Mainframe Software, Cybersecurity (Symantec and Carbon Black endpoint, network, information, application and identity security), Enterprise Software, and Fibre Channel SAN Management.

Semiconductor customers include hyperscalers, companies with AI frontier models, OEMs, system integrators and service providers, with applications in AI and enterprise data centers, servers, storage, telecommunications, wireless devices, factory automation, energy, automotive and displays. Software customers are mainly large enterprises across most industries, including banks, insurers, government agencies, IT service providers, telecom providers, manufacturers, retailers, educational organizations and health care institutions. Products are sold through a direct sales force and a network of distributors and channel partners; distributors and OEMs or their contract manufacturers account for the substantial majority of semiconductor sales. Distributors made up 48% of net revenue in fiscal 2025 and 2024, and the top five end customers accounted for about 40% of net revenue in each year. Private cloud software is available directly, through resellers and distributors, hyperscale cloud providers, value-added OEMs and VMware cloud service provider partners.

Operationally, Broadcom keeps design, product and software engineering resources mainly in the U.S., Asia and Europe, often near top customers. It also invests in process development and fabrication capabilities for devices it manufactures internally. Many semiconductor customers design products in North America or Europe that are manufactured in Asia. The company supports them through sales offices in various countries, regional customer support call centers and a primary warehouse in Malaysia.