Broadcom Inc.
Broadcom Inc. designs, develops, and supplies various semiconductor devices and infrastructure software solutions internationally. The company operates in two segments: Semiconductor Solutions and Infrastructure Software. The company offers networking connectivity, such as custom silicon solutions, ethernet switching & routing, ethernet NIC controllers, physical layer devices, and fiber optic components; wireless device connectivity, including RF semiconductor devices, connectivity solutions, custom touch controllers, and inductive charging ASICS; servers and storage system solutions, such as PCIE switches, SAS & raid products, fibre channel products, and HDD & SSD solutions; broadband solutions, includes set-top box, and broadband access; and industrial. The company also offers a private cloud software portfolio, including the VMware Cloud Foundation, Edge, vSphere foundation, telco cloud platform, private AI, live recovery, application networking and security, application development and data services; mainframe software, such as AIOPS & automation, database & data management, DEVX & DEVOPS, cybersecurity & compliance management, beyond code programs, foundational & open mainframe solutions; cybersecurity, such as endpoint, network, information, application security, and identity & access management; enterprise software; and fc san management. Its products are used in various applications in enterprise and data center networking, including artificial intelligence networking and connectivity, home connectivity, set-top boxes, broadband access, telecommunication equipment, wireless device and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Broadcom Inc. was founded in 1961 and is headquartered in Palo Alto, California.
What does it do?
Broadcom makes the chips and software that power the internet's backbone — the hardware inside data centers, routers, and smartphones that moves data around the world. When you stream Netflix, send a WhatsApp message, or use an AI chatbot, there's a good chance Broadcom's chips helped make it happen. They also make the Wi-Fi and Bluetooth chips inside most iPhones. In 2023, they bought VMware, a company that helps businesses run their computer systems more efficiently, turning Broadcom into a software powerhouse too.
Broadcom sits at the center of two of the biggest spending trends in tech right now: artificial intelligence infrastructure and cloud computing. Hyperscalers — the giant tech companies like Google, Meta, and Amazon that build massive data centers — are spending hundreds of billions of dollars on AI hardware, and Broadcom's custom AI chips (called XPUs) are a direct beneficiary. With a market cap of $1.8 trillion, investors are betting this isn't a cyclical chip story but a long-term structural shift.
How does it make money?
Broadcom makes money through two main buckets. The Semiconductor Solutions segment sells chips for networking, wireless, storage, and broadband — this includes the Wi-Fi chips Apple puts in every iPhone, which alone drives billions in revenue annually. The Infrastructure Software segment, built largely on the VMware acquisition, sells subscriptions to businesses that need to manage complex IT environments, and this segment has rapidly grown to represent a large and recurring portion of total revenue. Overall revenue grew from $51.6B to $63.9B in the latest year — a 24% jump — and net income hit $23.1B, showing the business is highly profitable.
Why do investors care?
The core growth story is AI. Broadcom is one of only a handful of companies that can design custom AI accelerator chips for the world's biggest tech companies, and Google, Meta, and ByteTok are already paying customers. Management has guided for its AI revenue to reach $60–90B over the next three years, which would be transformative. For this to play out, AI infrastructure spending needs to stay elevated, Broadcom needs to keep winning custom chip deals, and the VMware integration needs to keep converting customers from one-time licenses to higher-margin subscriptions.
Deep Dive
MemberA full investor briefing on Broadcom Inc. — history, leadership, risks, and outlook.