AVGO
TIER 1 · 7%RESEARCH PENDINGBroadcom • Semi Connectivity • NASDAQ
External Research
Key Metrics
Mkt Cap$1.52T
Fwd P/E24.3x
Gross Margin67.8%
D/E0.83
Rev Growth+25.2%
Customer RiskMedium
Supply Chain Position
Custom ASIC design (GOOGL TPU, META MTIA) + Tomahawk switching silicon + 3 generations of CPO shipped to Meta.
Why Included
Natural NVDA hedge — wins whether merchant GPU or custom ASIC dominates. $73B backlog, 68% gross margin, $29B FCF. Has shipped more CPO than anyone. Best risk/reward in the portfolio.
Customers: Apple ~20%, hyperscalers. Diversified but top-heavy.
Red Flags
- •D/E 0.83 is relatively high from VMware acquisition debt — needs deleveraging
- •Custom ASIC wins depend on continued hyperscaler commitment to in-house silicon
- •If NVDA merchant GPUs win decisively over custom ASICs, AVGO's strategic hedge value diminishes
Citrini Research Note
Not in Citrini basket (not photonics-specific). Added as mid-stream ASIC + networking bridge that Citrini assumes audience already owns.