For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Why investing for the long run, especially if you buy certain popular stocks, could reap huge rewards.
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Broadcom $AVGO Inc. (AVGO) 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?
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 $63.89 billion in fiscal 2025. The company has two reporting segments: Semiconductor solutions and Infrastructure software.
Semiconductor solutions accounted for 58% of fiscal 2025 revenues. Apart from Broadcom’s semiconductor solution product lines this segment includes IP licensing business.
Infrastructure software solutions accounted for 42% of fiscal 2025 revenues. The segment includes mainframe, BizOps, cyber security software solutions, and FC SAN businesses.
Broadcom faces stiff competition from Analog Devices $ADI, Cisco $CSCO, Finisar, GlobalFoundries, Intel $INTC, Lumentum, MACOM, Marvell, Mediatek, NXP Semiconductors, Qorvo, Qualcomm $QCOM, ON Semiconductor, Skyworks, Toshiba and Texas Instruments $TXN in the semiconductor solutions market.
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Broadcom Inc. a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in May 2016 would be worth $29,729.15, or a gain of 2,872.92%, as of May 13, 2026, and this return excludes dividends but includes price increases.
In comparison, the S&P 500's gained 258.55% and the price of gold went up 255.71% over the same time frame.
Analysts are anticipating more upside for AVGO.
Broadcomis experiencing strong momentum fueled by growth in AI semiconductors and continued success with its VMware integration. Strong demand for its networking products and custom AI accelerators (XPUs) has been noteworthy. Its AI segment benefits from custom accelerators and advanced networking technology that support large-scale AI deployments with improved performance and efficiency. Broadcom expects second-quarter fiscal 2026 AI revenues to surge 140% year over year to $10.7 billion. AVGO's networking portfolio is gaining from the strong demand for Tomahawk 6 products. The acquisition of VMware has benefited Infrastructure software solutions. A rich partner base is a key catalyst. However, gross margin in the fiscal second quarter is expected to be flat sequentially. High debt level is a headwind.
The stock is up 10.12% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2026. The consensus estimate has moved up as well.
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