Broadcom Inc. (NASDAQ: AVGO) is heading into today’s shortened Black Friday session trading just under the $400 mark, hovering near its all‑time closing high after a powerful run driven by artificial‑intelligence chip demand, VMware software growth and heavy institutional buying.
The stock last closed on Wednesday, November 26, at $397.57, only about 0.6% below its 52‑week intraday high of $399.87 and far above its 52‑week low of $138.10. [1] Over the past 12 months Broadcom shares have surged roughly 145–150%, cementing the company’s place among the market’s AI leaders. [2]
According to recent trading data, AVGO has climbed about 12% over the last five sessions, making repeated new highs as investors crowd into a handful of AI‑exposed mega‑caps. [3] U.S. equity markets are open on a partial schedule today, closing at 1 p.m. Eastern due to the Thanksgiving holiday, which often concentrates trading in a small group of headline names like Broadcom. [4]
Below is a deep dive into what’s moving Broadcom stock today, how the fundamentals look after blockbuster Q3 results, and the key risks and catalysts investors are watching into Broadcom’s next earnings report on December 11.
Broadcom Stock Price and Valuation Snapshot (28 November 2025)
Price & performance
- Last close (Nov 26): $397.57
- 52‑week range: $138.10 – $399.87 [5]
- 12‑month performance: roughly +145–150% [6]
- Last 3 months: about +29%, as Broadcom has set dozens of fresh 52‑week highs. [7]
- Recent momentum: ~+12% in 5 trading days, per recent market commentary. [8]
Valuation & trading metrics
Recent data from major market platforms show: [9]
- Market cap: ≈ $1.9 trillion
- Trailing P/E ratio: ~100× earnings
- EV/EBITDA: just under 59×
- Price‑to‑book: ~26×
- Beta (5‑year): around 1.2, indicating above‑market volatility
- Average daily volume: about 28–29 million shares over the past month
These numbers underscore why many analysts describe Broadcom as a high‑growth, high‑expectation AI and infrastructure software play: the multiple is rich, but so are the company’s growth rates and margins.
AI Chips Are the Engine Behind Broadcom’s Rally
Broadcom’s fundamental story in 2025 is all about AI.
Blowout Q3 FY2025 results
For the fiscal third quarter ended August 3, 2025, Broadcom reported: [10]
- Revenue:$15.952 billion, up 22% year over year
- GAAP net income:$4.14 billion
- Non‑GAAP net income:$8.40 billion
- Adjusted EBITDA:$10.7 billion, or 67% of revenue
- Non‑GAAP diluted EPS:$1.69
- Free cash flow:$7.0 billion, up 47% vs. a year earlier
Crucially, AI‑related semiconductor revenue jumped 63% year over year to about $5.2 billion in Q3, and management guided that AI revenue should climb to roughly $6.2 billion in Q4, representing more than a third of total sales. [11]
Segment data from Broadcom’s SEC filings shows: [12]
- Semiconductor solutions revenue: ≈ $9.17 billion, up mid‑20s percent year over year
- Infrastructure software (including VMware): ≈ $6.8 billion, up high‑teens year over year
In other words, AI chips are now a huge share of Broadcom’s semiconductor business and a major driver of its double‑digit top‑line growth.
Custom accelerators for the hyperscalers
Broadcom has positioned itself as one of the few companies capable of designing custom AI accelerators and high‑performance networking silicon at hyperscale. Recent coverage highlights: [13]
- Broadcom’s custom AI accelerators (“XPUs”) are increasingly used by Google and OpenAI and reportedly account for the majority of the company’s AI‑related chip revenue.
- Google’s latest Gemini models are understood to run on Broadcom‑designed TPUs, deepening a multi‑year partnership around data‑center AI infrastructure.
- Broadcom has launched next‑generation Tomahawk Ultra and Jericho networking chips, aimed at building massive AI clusters that compete with and complement Nvidia‑centric architectures.
- On the Q3 call, management highlighted a $10 billion AI chip order from a new customer, believed by many analysts to be OpenAI, and suggested AI sales could accelerate further into fiscal 2026–2027.
Analysts and commentators estimate Broadcom now has an AI‑related order backlog in excess of $100 billion, with expectations that AI revenue could more than double in fiscal 2026 if current customer roadmaps hold. [14]
That AI momentum is the single biggest reason AVGO sits near record highs today despite a triple‑digit earnings multiple.
VMware and Infrastructure Software: Growth With Friction
The other pillar of Broadcom’s story is software — especially VMware, which Broadcom acquired in late 2023 for roughly $69 billion. [15]
By 2024, Broadcom’s revenue mix had shifted to about 58% semiconductor hardware and 42% infrastructure software, making VMware and related products a critical growth and margin driver. [16]
VMware now a multibillion‑dollar revenue stream
In Q3 FY2025, Broadcom’s infrastructure software segment – which includes VMware Cloud Foundation, Tanzu, and mainframe and security products – generated about $6.8 billion in revenue, growing in the high‑teens versus a year earlier. [17]
Industry analysis suggests that VMware is now contributing roughly $6.7–6.8 billion per quarter to Broadcom’s top line, with mid‑teens growth, driven by: [18]
- Broadcom’s push to bundle VMware into VMware Cloud Foundation (VCF) subscriptions.
- Higher prices and tighter licensing enforcement.
- Cross‑selling VMware into Broadcom’s existing enterprise and carrier customers.
Pricing backlash and legal scrutiny
While VMware is clearly boosting Broadcom’s revenue and margins, the integration has been controversial:
- Sharp price increases: European VMware customers have reported price hikes of up to 1,500% on some licensing bundles after the Broadcom takeover, forcing some organisations to reconsider their entire virtualization strategy. [19]
- Partner program cuts: Broadcom slashed the number of authorized VMware Cloud Service Providers from more than 4,500 to a much smaller list, pushing many smaller MSPs and VARs out of the ecosystem and drawing criticism from channel analysts. [20]
- Regulatory pushback: The Cloud Infrastructure Service Providers in Europe (CISPE) has filed legal action seeking to annul the European Commission’s approval of the VMware deal, arguing that Broadcom’s licensing model could entrench a “gatekeeper” position in Europe’s cloud market. [21]
- Customer disputes: Courts and large enterprises, including Dutch public‑sector agencies and industrial giants such as Siemens, have clashed with Broadcom over support timelines and licensing terms, leading to court‑ordered extensions of VMware support in some cases. [22]
Resellers like Intelisys have published “action plans” advising customers on how to navigate VMware’s new licensing and subscription requirements under Broadcom, underscoring the complexity and tension around the transition. [23]
For investors, VMware is a classic double‑edged sword: it adds recurring, high‑margin software revenue, but also brings legal, regulatory and customer‑retention risks that could affect Broadcom’s long‑term growth story.
Big Money Is Buying: Institutional Flows Into AVGO
One of the notable themes in Broadcom news this week is the scale of institutional buying.
Recent 13F filings, summarised by MarketBeat, show multiple large investors increasing their AVGO stakes in the second quarter: [24]
- Norges Bank (Norway’s sovereign wealth fund) initiated a new position of about 67.4 million Broadcom shares, valued at roughly $18.6 billion. AVGO now represents around 2.3% of its portfolio and ranks as its 7th‑largest holding.
- Scotia Capital Inc. increased its stake by 9%, adding 40,545 shares to reach about 491,796 shares worth approximately $135.6 million at the end of Q2.
- F M Investments LLC boosted its holdings by 5.1% to more than 311,000 shares, making Broadcom roughly 3.1% of its investment portfolio and its 5th‑largest position.
- Level Four Advisory Services LLC lifted its stake by 2.4% to about 120,000 shares, now its 8th‑largest holding at about 1.2% of the portfolio.
Separate MarketBeat rundowns over the past few days highlight additional mid‑sized managers — including Stevens Capital Partners, Garner Asset Management and Copley Financial Group — either initiating or increasing positions in Broadcom. [25]
Taken together, these flows suggest that large, long‑term investors are still willing to accumulate the stock near record levels, betting that Broadcom’s AI and software franchises have further to run.
What Wall Street Thinks: Strong Buy, but Expectations Are Sky‑High
Consensus ratings and price targets
Across major analyst aggregators, Broadcom continues to wear a “Strong Buy” label:
- StockAnalysis reports that 28 analysts currently cover AVGO, with an average rating of “Strong Buy” and no sell recommendations. [26]
- MarketWatch data shows an average target price around $411 based on more than 50 ratings, implying modest upside from levels just below $400. [27]
- TipRanks lists an average 12‑month target of roughly $401.50, with a high estimate of $480 and a low of $300. The platform counts 29 Buy ratings and 2 Holds, again with no Sells. [28]
- MarketBeat’s target compilation, which may include older estimates, shows an average closer to $378, with a high of $460 and a low of $210, suggesting some analysts still see limited upside or even mild downside at current prices. [29]
In short, the Street is bullish, but consensus upside from sub‑$400 levels is now relatively modest unless AI growth significantly outpaces expectations.
Fresh upgrades into year‑end
Several high‑profile target increases have helped fuel AVGO’s latest leg higher:
- A Goldman Sachs note this week kept Broadcom at “Strong Buy” while raising the price target from $380 to $435, citing robust demand for custom AI chips and deepening partnerships with Google and OpenAI. [30]
- Mizuho maintained a “Buy” rating and nudged its target from $430 to $435.
- UBS and Citigroup have similarly raised their targets into the low‑$400s, reflecting confidence that Broadcom can convert its AI backlog and VMware cross‑sell into accelerating earnings growth in 2026. [31]
At the same time, several analyses warn that Broadcom’s valuation leaves little room for error, especially with the stock trading at more than 100× trailing earnings and nearly 59× EBITDA, far above many other large semiconductor names. [32]
Key Catalysts Ahead for AVGO
With the stock near record highs, investors are focused on a handful of near‑term catalysts that could determine whether Broadcom’s rally continues or pauses.
1. Q4 and full‑year FY2025 earnings – 11 December 2025
Broadcom has announced it will report fourth‑quarter and full‑year FY2025 results on Thursday, December 11, 2025, after the market close, followed by a conference call at 5 p.m. Eastern. [33]
Guidance from the Q3 release calls for: [34]
- Q4 revenue around $17.4 billion, up about 24% year over year.
- Adjusted EBITDA margin holding at roughly 67%.
- AI semiconductor revenue increasing to $6.2 billion.
On the call, investors will watch for:
- Updated AI revenue guidance for fiscal 2026.
- More detail on the large new AI customer and the size/timing of AI chip backlogs.
- Progress on VMware integration, churn and pricing sustainability.
With expectations already elevated, even solid numbers may not guarantee a positive stock reaction if guidance is perceived as conservative.
2. VMware licensing and regulatory developments
Ongoing European legal challenges and potential decisions around VMware licensing could shape the narrative around Broadcom’s software strategy in 2025–2026. [35]
Any signs of:
- Forced concessions on pricing or licensing,
- Adverse court rulings related to support obligations, or
- Accelerating customer migration off VMware,
could pressure sentiment around Broadcom’s high‑margin software business.
3. Capital allocation: buybacks and dividends
Broadcom continues to return substantial cash to shareholders:
- In Q3 FY2025 the company paid a $0.59 quarterly dividend per share, totaling about $2.8 billion in cash returns. [36]
- In April 2025, Broadcom’s board authorized a new $10 billion share repurchase program running through the end of 2025, underscoring management’s confidence in long‑term cash‑flow generation and AI positioning. [37]
Any update to the dividend policy or extensions to the buyback program at or after the December earnings call would be closely watched.
What Today’s Move Means for Investors
As of today, November 28, 2025, Broadcom stock sits at the crossroads of powerful tailwinds and equally significant risks.
Bullish factors supporting AVGO near $400
- Explosive AI growth: AI semiconductor revenue is growing more than 60% year over year, with management guiding to another step‑up in Q4 and analysts expecting continued acceleration into 2026. [38]
- Diversified infrastructure franchise: Broadcom now combines high‑end chips, networking gear and mission‑critical infrastructure software, giving it multiple ways to monetise AI and cloud demand. [39]
- Robust cash generation: Record free cash flow (~$7 billion last quarter) and industry‑leading EBITDA margins give Broadcom ample resources to invest in R&D, fund AI capacity and return capital via dividends and buybacks. [40]
- Institutional and sovereign wealth support: Large stakes from Norges Bank, Scotia Capital and multiple asset managers indicate that sophisticated long‑term investors are comfortable owning AVGO despite its premium valuation. [41]
- Positive analyst sentiment: The consensus “Strong Buy” rating and a cluster of price targets in the low‑$400s show Wall Street remains bullish on Broadcom’s AI and software trajectory. [42]
Key risks to keep in mind
- Valuation risk: With a triple‑digit P/E and EV/EBITDA near 60×, Broadcom is priced for sustained hyper‑growth. Any slowdown in AI orders or cautious guidance could trigger sharp volatility. [43]
- Customer concentration: A meaningful portion of AI revenue comes from a handful of hyperscalers such as Google, Meta and OpenAI; changes in their in‑house chip strategies or competitive dynamics with Nvidia and AMD could affect future growth. [44]
- VMware backlash and regulation: Ongoing legal challenges, customer pushback over price hikes and potential EU scrutiny introduce uncertainty into the software segment, even as it contributes strongly to revenue and profit. [45]
- Macro and holiday‑liquidity effects: Today’s Black Friday session features reduced trading hours and lighter volumes, historically a time when mega‑caps can move sharply on relatively small order flows, especially amid broader market events like this morning’s CME futures outage. [46]
Bottom Line
Broadcom enters this Black Friday session as one of the most important — and most expensive — AI infrastructure stocks in the market. Shares are trading just below record highs, supported by rapid AI revenue growth, an expanding software franchise via VMware, strong free cash flow and visible institutional demand.
At the same time, expectations are extremely high. With consensus targets only modestly above current levels and a December 11 earnings report looming, Broadcom now has to deliver on aggressive AI and software growth promises to justify its valuation.
For investors following AVGO today, the key questions heading into year‑end are:
- Can Broadcom sustain AI revenue growth above 50–60% for several more quarters?
- Will VMware’s revenue and margin gains outweigh customer churn and regulatory scrutiny?
- How will management balance heavy investment in AI capacity with continued buybacks and dividends?
How those questions are answered next month may matter more for Broadcom’s 2026 stock trajectory than the day‑to‑day moves in this shortened Black Friday session.
This article is for informational purposes only and does not constitute financial or investment advice. Always do your own research or consult a licensed financial adviser before making investment decisions.
References
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