{"id":27423,"date":"2024-12-02T23:56:00","date_gmt":"2024-12-02T15:56:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=27423"},"modified":"2025-07-09T09:41:45","modified_gmt":"2025-07-09T01:41:45","slug":"broadcom-share-price","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/","title":{"rendered":"The reasons behind Broadcom share price consistantly outperformance"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#Company_profile\" >Company profile<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#Capital_operation\" >Capital operation<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#Stock_split\" >Stock split<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#Repurchase\" >Repurchase<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#Cash_dividend\" >Cash dividend<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#Acquisitions\" >Acquisitions<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#The_field_Broadcom_has_1_market_share\" >The field Broadcom has #1 market share<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#Customized_chip_aka_ASIC\" >Customized chip (aka ASIC)<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#Potential_market_size\" >Potential market size<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#Customers\" >Customers<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#High_speed_transmission\" >High speed transmission<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#Ethernet_switching\" >Ethernet switching<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#Radio_frequency\" >Radio frequency<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#Hidden_competitiveness\" >Hidden competitiveness<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#CEO\" >CEO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#Infrustructure_software\" >Infrustructure software<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#The_representative_of_sustainability\" >The representative of sustainability<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#Artificial_intelligence\" >Artificial intelligence<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#AI_revenue_grew_280_YY_in_Q1_2024\" >AI revenue grew 280% Y\/Y in Q1 2024<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#What_technologies_are_used_in_artificial_intelligence\" >What technologies are used in artificial intelligence?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#high_speed_transmission\" >high speed transmission<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#Ethernet_switching-2\" >Ethernet switching<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#Customized_chipASIC\" >Customized chip(ASIC)<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#Capital_market_performance\" >Capital market performance<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#The_seventh_largest_by_market_capitalization\" >The seventh largest by market capitalization<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#share_price_performance\" >share price performance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#Valuation\" >Valuation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#Cash_dividend-2\" >Cash dividend<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#Repurchase-2\" >Repurchase<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#Outlook\" >Outlook<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#Investment_Risks\" >Investment Risks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#Apple_accounted_for_a_fifth_of_revenue\" >Apple accounted for a fifth of revenue<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#Debt_ratio_is_too_high\" >Debt ratio is too high<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#Acquisitions_impact_profit_margins\" >Acquisitions impact profit margins<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-36\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/#Related_articles\" >Related articles<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Company_profile\"><\/span>Company profile<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before we start to talk about Broadcom share price, if you are not familiar with Broadcom, I strongly recommend that investors read my other previous post of &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/07\/23\/significant-changes-in-broadcoms-business-approach\/\" target=\"_blank\" rel=\"noreferrer noopener\">Significant changes in Broadcom\u2019s business approach<\/a>&#8221; before continuing to read this article.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Capital_operation\"><\/span>Capital operation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Broadcom should be a model for capital operations among U.S. listed technology companies. The main man behind this is Broadcom CEO Hock E. Tan.<\/p>\n\n\n\n<p><strong>Note: What is capital operation?<\/strong><\/p>\n\n\n\n<p>In Sections 6-7 of my book &#8220;<a href=\"https:\/\/www.books.com.tw\/products\/0010935641\" target=\"_blank\" rel=\"noreferrer noopener\">The Rules of 10 Baggers<\/a>&#8220;, &#8220;Five Capital Operations  Have a Strong Impact on Stock Prices&#8221;, the entire section is dedicated to introducing the capital operations of enterprises.<\/p>\n\n\n\n<p>The content will not be repeated here. Interested investors can refer to the contents of my book. And I also specifically emphasize that capital operations are very important for all listed companies.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stock_split\"><\/span>Stock split<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Excluding Broadcom&#8217;s three stock splits before it was acquired by Avago. In June 2024, Broadcom announced that it would conduct its first stock split since its listing on July 13, 2024, splitting one stock into ten shares, causing Broadcom&#8217;s stock price to surge by 12.27% the next day.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Repurchase\"><\/span>Repurchase<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In fiscal 2022, the company conducted a $7 billion stock repurchase program. In fiscal 2023, the company spent $3.42 billion on stock repurchases.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cash_dividend\"><\/span>Cash dividend<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The yield rate is 1.17%. For a long time, Broadcom has been a stock with relatively high cash dividends among high-tech stocks. In fiscal year 2022, the company paid out $7.032 billion in cash dividends.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Acquisitions\"><\/span>Acquisitions<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Under the leadership of Broadcom CEO Hock E. Tan, the company continues to carry out large-scale mergers and acquisitions, and the target companies have the following characteristics:<\/p>\n\n\n\n<p>They are all well-known leading companies in the industry.<\/p>\n\n\n\n<p>Not limited to semiconductor companies, it has also acquired numerous large software companies.<\/p>\n\n\n\n<p>Although unsuccessful, Broadcom also wanted to acquire Qualcomm and SAS, two companies with high visibility and market leadership in semiconductors and enterprise data analysis software respectively.<\/p>\n\n\n\n<p>For information on which important companies Broadcom has acquired, please see my previous post of &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/07\/23\/significant-changes-in-broadcoms-business-approach\/\" target=\"_blank\" rel=\"noreferrer noopener\">Significant changes in Broadcom\u2019s business approach<\/a>&#8220;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_field_Broadcom_has_1_market_share\"><\/span>The field Broadcom has #1 market share<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Customized_chip_aka_ASIC\"><\/span>Customized chip (aka ASIC)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Potential_market_size\"><\/span>Potential market size<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>In the ASIC customized chip market, Broadcom ranks first with a market share of 35%. SemiAnalysis said that Broadcom&#8217;s ASIC business scale can reach 10 billion US dollars.<\/p>\n\n\n\n<p>Broadcom&#8217;s management mentioned in the first half of 2024:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In the next 5 years, artificial intelligence semiconductor opportunities will be a market opportunity of US$150 billion<\/li>\n\n\n\n<li>This means that annual revenue growth for artificial intelligence will be between 30-40% during this period<\/li>\n<\/ul>\n\n\n\n<p>J.P. Morgan said: \u201cWe believe that Broadcom\u2019s ASIC customized chip team is still expected to drive AI (ASIC + network) revenue to more than approximately US$12 billion in 2024, and will reach more than US$16 billion in 2025. &#8220;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Customers\"><\/span>Customers<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Broadcom&#8217;s diversity in software and hardware business, coupled with a combination of reliable product lines, will help expand its customer base. Large customers disclosed by the outside world as of 2024 include Alphabet, META, Apple, ByteDance (the parent company of TikTok) and OpenAI; and there is another large customer that is about to finalize the contract. Alphabet alone accounts for 35% of Broadcom AI revenue!<\/p>\n\n\n\n<p>In addition, Broadcom also has some strong partner customer bases such as Microsoft, AT&amp;T, etc.<\/p>\n\n\n\n<p>Broadcom CEO Hock Tan said at the 2024 earnings conference on March 6, 2025: &#8220;Broadcom&#8217;s ASIC business unit is developing custom AI chips with three customers, is in deep contact with two others, and is working with four other potential customers; but we are only interested in super large customers, not startup-level companies.&#8221;<\/p>\n\n\n\n<p>For the dedicated discussion on ASIC, please see my post of &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/07\/02\/asic-getting-bigger\/\" target=\"_blank\" rel=\"noreferrer noopener\">ASIC market is getting bigger, and related listed companies in the US and Taiwan<\/a>&#8220;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"High_speed_transmission\"><\/span>High speed transmission<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Broadcom has a lot of PCI Express, which is the technology for high-speed transmission and exchange of computer data, and has long been a leading manufacturer in this field.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ethernet_switching\"><\/span>Ethernet switching<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Before Broadcom was acquired by Avago, it owned many key technologies for Ethernet wired network switching. In fact, Broadcom has been a leading manufacturer in the field of Ethernet wired network switching for decades.<\/p>\n\n\n\n<p>Broadcom dominates AI data center network equipment, with a 71% market share in Ethernet switch chips, far exceeding Nvidia&#8217;s Infiniband&#8217;s approximately 20%. Its 800G optical module technology further matches the demand for computing power expansion, with shipments in 2024 growing 50% compared to the same period last year.<\/p>\n\n\n\n<p>Broadcom said: &#8220;99% of the world&#8217;s Internet traffic is carried by some type of Broadcom technology.&#8221;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Radio_frequency\"><\/span>Radio frequency<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Anwar, the predecessor of Broadcom, was well-known in the technology world for its radio frequency technology. Radio frequency is a key technical component of mobile phones, and almost all major mobile phone manufacturers in the world are Broadcom&#8217;s customers, including Apple.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Hidden_competitiveness\"><\/span>Hidden competitiveness<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"CEO\"><\/span>CEO<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Broadcom CEO Hock E. Tan is one of the most critical reasons behind the company&#8217;s success. Hock E. Tan is a Malaysian-born Chinese. He holds a PhD in mechanical engineering from MIT and a master&#8217;s degree in business administration from Harvard University. Therefore, in addition to having a background in science and engineering, Chen Fuyang is also familiar with financial management and business operations.<\/p>\n\n\n\n<p>In the past few years, Hock E. Tan has topped the salary rankings of CEOs of listed companies in the United States, and has often been ranked among the best CEOs of many listed companies in the United States. Both illustrate his outstanding leadership abilities.<\/p>\n\n\n\n<p>Excellent CEOs of listed companies are hard to come by, especially those with outstanding financial and technological backgrounds who can consistently deliver impressive results.<\/p>\n\n\n\n<p>The reason behind the long-term continued outperformance of Broadcom&#8217;s stock price is that I vote for Broadcom CEO Hock E. Tan.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Infrustructure_software\"><\/span>Infrustructure software<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>From scratch, Broadcom&#8217;s software division&#8217;s revenue alone can now rank seventh in the world, second only to Alphabet, Microsoft, Meta, Oracle, Seifushi, and SAP; and even surpasses Adobe. Well-known large software company.<\/p>\n\n\n\n<p>Broadcom is the &#8220;only&#8221; listed semiconductor company that has many large-scale software product lines. These softwares are all very well-known large-scale software, considered strong products in their respective fields, and have long-term reliable large-scale enterprise customers. Customer information basic software was mainly acquired through mergers and acquisitions in recent years.<\/p>\n\n\n\n<p>In the second quarter of fiscal year 2024, Broadcom&#8217;s software department&#8217;s total revenue accounted for 42.35% of the entire company&#8217;s total revenue, which shows the importance of Broadcom&#8217;s software department.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_representative_of_sustainability\"><\/span>The representative of sustainability<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In my book &#8220;The 10x Stock Rule,&#8221; I tirelessly state over and over again that &#8220;sustainability&#8221; is very important to stock investing. Broadcom can be said to be the best representative of sustainability, which is one of the few large listed companies that can perform well in the long term.<\/p>\n\n\n\n<p>Regarding the topic of &#8220;sustainability&#8221;, readers can also refer to the analysis of my other post &#8220;Sustainability is important in stock market investment&#8221;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Artificial_intelligence\"><\/span>Artificial intelligence<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"AI_revenue_grew_280_YY_in_Q1_2024\"><\/span>AI revenue grew 280% Y\/Y in Q1 2024<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In the second quarter of fiscal 2024, sales of Broadcom&#8217;s artificial intelligence-related divisions increased by 280% annually, and the company currently expects sales of Broadcom&#8217;s artificial intelligence-related divisions to exceed $11 billion in fiscal 2024. Please note that this is just Broadcom&#8217;s artificial intelligence-related department, not the entire company&#8217;s revenue.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_technologies_are_used_in_artificial_intelligence\"><\/span>What technologies are used in artificial intelligence?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"high_speed_transmission\"><\/span>high speed transmission<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>In the second quarter of fiscal 2024, Broadcom doubled shipments of PCI Express switches and NICs in its AI backend fabric.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ethernet_switching-2\"><\/span>Ethernet switching<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>In the second quarter of fiscal 2024, Broadcom doubled shipments of PCI Express switches and Ethernet switch NICs in its AI backend fabric.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Customized_chipASIC\"><\/span>Customized chip(ASIC)<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Broadcom has already captured 15% of the market share in the AI \u200b\u200bchip (mainly designing customized chips for several very large customers) market in 2023, and is expected to reach 25% of the market share in 2024, with total revenue exceeding US$10 billion. .<\/p>\n\n\n\n<p>Alphabet is one of the major customers of Broadcom\u2019s customized silicon (ASIC). These chips are designed to support artificial intelligence and machine learning and make these tasks more efficient. Meta Platforms, AT&amp;T, Microsoft  have also emerged as a significant customer, as it is using Broadcom&#8217;s ASICs to develop the Metaverse&#8217;s hardware.<\/p>\n\n\n\n<p>For the dedicated discussion on ASIC, please see my post of &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/07\/02\/asic-getting-bigger\/\" target=\"_blank\" rel=\"noreferrer noopener\">ASIC market is getting bigger, and related listed companies in the US and Taiwan<\/a>&#8220;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Capital_market_performance\"><\/span>Capital market performance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_seventh_largest_by_market_capitalization\"><\/span>The seventh largest by market capitalization<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As of June 18, 2024, Broadcom&#8217;s market value was US$839.05 billion, making it the seventh-largest company in the U.S. stock market.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"share_price_performance\"><\/span>share price performance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As of June 18, 2024, it has increased by 557.88% in the past five years and 107.66% in the past year. Among the top ten companies in the world by market capitalization, except for Nvidia, his performance should be considered the best.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Valuation\"><\/span>Valuation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Broadcom&#8217;s price-to-earnings ratio of free cash flow in the past 12 months seems reasonable, about 44 times; the price-to-earnings ratio is about 71, and its market value is about $772 billion.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cash_dividend-2\"><\/span>Cash dividend<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As of 2023, Broadcom has increased cash dividends for 12 consecutive years. In the ten years from 2013 to 2022, the 10-year compound annual growth rate of cash dividends is 142%, and the yield rate of cash dividends is 46%.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Repurchase-2\"><\/span>Repurchase<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Broadcom is one of the very large public companies that continues to aggressively repurchase stock. For example, in December 2021, Broadcom announced a $10 billion stock repurchase authorization. In May 2022, a new $10 billion repurchase program was authorized.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Outlook\"><\/span>Outlook <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Broadcom expects fiscal 2024 revenue of $50 billion (up from previous guidance of $50 million) and adjusted EBITDA margin of 61% (up from 60% previously). The growth reflects Broadcom&#8217;s growing dominance in the artificial intelligence infrastructure market.<\/p>\n\n\n\n<p>Broadcom expects revenue of $51.24 billion in 2024, with a price-to-sales ratio (P\/S) of about 16, according to Wall Street estimates. Wall Street expects revenue growth of 43% in 2024 and 16% in 2025.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Investment_Risks\"><\/span>Investment Risks<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Apple_accounted_for_a_fifth_of_revenue\"><\/span>Apple accounted for a fifth of revenue<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Over the long term, it expects to generate about half of its revenue from software, thus reducing its dependence on the cyclical semiconductor sector and its top customer, Apple, which accounted for a fifth of its sales over the past two fiscal years. For any company, it&#8217;s a big risk to rely on a specific customer.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Debt_ratio_is_too_high\"><\/span>Debt ratio is too high<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Broadcom&#8217;s current debt ratio is 1.5, Nvidia&#8217;s is only 0.5, and its total debt is US$74 billion; but Broadcom&#8217;s management stated that it plans to continue to repay debt at a rate of approximately US$2 billion per quarter.<\/p>\n\n\n\n<p>This was mainly caused by Broadcom&#8217;s high borrowings in the past in order to acquire large software companies. In particular, the software companies acquired by Broadcom were all very large companies (VMware, Symantec, and CA were all large software listed companies), the cost is affordable.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Acquisitions_impact_profit_margins\"><\/span>Acquisitions impact profit margins<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Broadcom&#8217;s free cash flow profit margin in 2023 will be 49%, while it will drop sharply to 36% in the first quarter of 2024!<\/p>\n\n\n\n<p>Broadcom currently has an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 61%. Due to mergers and acquisitions in 2025, integration costs are basically completed, and VMware will be able to help Broadcom&#8217;s free cash flow profit margin be close to 50% as in 2023.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>&#8220;99% of all internet traffic crosses through some type of Broadcom technology&#8221;, Broadcom said.<\/p>\n\n\n\n<p>In short, Broadcom has the following rare characteristics of large listed companies: <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It has diversified and market-leading software and hardware products and revenue growth drivers. <\/li>\n\n\n\n<li>An excellent management team that can continue to deliver outstanding results. <\/li>\n\n\n\n<li>A unique capital operation that has proven successful. <\/li>\n\n\n\n<li>A cash dividend yield policy that has been higher than the market for many years, as well as a tracking record of dividend growth rate. <\/li>\n<\/ul>\n\n\n\n<p>For a super-listed company like Broadcom, which has the seventh largest market capitalization, having these advantages at the same time is a very difficult achievement to achieve, which proves that the premium that investors give to Broadcom&#8217;s stock price is reasonable.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"178\" height=\"100\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2024\/06\/bs-Custom.jpg\" alt=\"Broadcom share price\" class=\"wp-image-27431\"\/><figcaption class=\"wp-element-caption\">credit: Ideogram<\/figcaption><\/figure>\n\n\n\n<p><strong><em>I am the author of the original text, the essence of this story was originally featured on Smart Magazine<\/em><\/strong>, <strong><em>Issue of November 2024<\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Related_articles\"><\/span>Related articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/07\/08\/astera-labs-make-money\/\">How Astera Labs, AI high-speed transmission expert, make money? <\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/02\/08\/deepseek-rout\/\">DeepSeek routed the global AI and stock<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/02\/12\/chinese-ai-companies\/\">Chinese AI progress and top companies<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/02\/broadcom-share-price\/\">The reasons behind Broadcom share price consistantly outperformance<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/07\/02\/asic-getting-bigger\/\" target=\"_blank\" rel=\"noreferrer noopener\">ASIC market is getting bigger, and related listed companies in the US and Taiwan<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/22\/comparison-gpu-and-asic\/\">Comparison of AI chips GPU and ASIC<\/a>&#8221; <\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/07\/23\/significant-changes-in-broadcoms-business-approach\/\" target=\"_blank\" rel=\"noreferrer noopener\">Significant changes in Broadcom\u2019s business approach<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/06\/30\/sustainability\/\">Sustainability matters in stock market investing<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/11\/30\/tsmc-negative-corp-culture\/\" target=\"_blank\" rel=\"noreferrer noopener\">TSMC negative corp culture and management style are detrimental to its future and growth<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/04\/10\/four-chip-companies\/#google_vignette\" target=\"_blank\" rel=\"noreferrer noopener\">Four chip companies account for one-third of S&amp;P 500 gains so far this year<\/a><\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/04\/06\/artificial-intelligence-listed-companies\/\" target=\"_blank\" rel=\"noreferrer noopener\">Top five lucrative artificial lucrative intelligence listed companies<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/01\/09\/tsmc-valuation\/\">Why is TSMC valuation much lower than US peers?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/04\/01\/tsmc-dcf-value\/\">What&#8217;s TSMC DCF intrinsic value?How to calculate it quickly with a free tool?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/10\/01\/how-many-fab-does-tsmc-have\/\" target=\"_blank\" rel=\"noreferrer noopener\">How many fabs and houses does TSMC have currently and in the future?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/05\/13\/yield-rate-comparison\/\" target=\"_blank\" rel=\"noreferrer noopener\">Yield rate comparison of SMIC, Rapidus, TSMC, Samsung, Intel&#8217;s advanced process<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/04\/29\/cost-of-chip-foundry\/\">The TSMC cost, sell price, and R&amp;D cost of chip foundry<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/01\/15\/asml-who-really-caught-tsmcs-neck\/\" target=\"_blank\" rel=\"noreferrer noopener\">ASML, who dominate TSMC\u2019s fate<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/12\/28\/tsmc-process-roadmap\/\" target=\"_blank\" rel=\"noreferrer noopener\">Comparison of SMIC, Rapidus, TSMC, Intel, and Samsung\u2019s new process roadmaps for future chips<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/07\/30\/two-long-term-threats-to-tsmc\/\" target=\"_blank\" rel=\"noreferrer noopener\">Two long-term threats to TSMC: US and SMIC<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/06\/30\/tsmcs-profit-margin\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why is TSMC\u2019s profit margin much greater than competitors?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/13\/how-does-tsmc-make-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does TSMC make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/02\/zyvex\/\" target=\"_blank\" rel=\"noreferrer noopener\">Zyvex and sub-nanometer semiconductor processes, will Zyvex threat TSMC?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/01\/28\/tsmc-serious-crises\/\">TSMC gets emerging&nbsp;and serious challenges<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/06\/24\/nvidia-changes-gaming-rules\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does nVidia make money, Nvidia is changing the gaming rules<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/11\/nvidias-monopoly\/\" target=\"_blank\" rel=\"noreferrer noopener\">The reasons for Nvidia\u2019s monopoly and the challenges it faces<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/01\/29\/arm-acquired-by-nvidia\/\">Why nVidia failed to acquire ARM?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/07\/02\/revisiting-nvidia\/\">Revisiting Nvidia: The Absolute Leader in Artificial Intelligence, Data Center, and Graphics<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/10\/30\/how-does-intel-make-money-and-the-benefits-to-invest-in-it\/\">How does Intel make money? and the benefits to invest in it<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/05\/intels-current-difficult-dilemma\/\">Intel&#8217;s current difficult dilemma<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/25\/how-does-micron-make-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does Micron make money? What investors should know?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does Texas Instruments make money? Amazing long term capital reward and company net profit margin!<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/04\/22\/amd-make-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">How AMD makes money? A rare case of turning defeat into victory<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/02\/05\/amd-jaw-dropping\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why is AMD\u2019s performance so jaw-dropping?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/05\/01\/qualcomm-diversifies\/\" target=\"_blank\" rel=\"noreferrer noopener\">Qualcomm diversifies success, no nonger highly dependend on phone<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/01\/29\/how-arm-make-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does the ubiquitous Arm make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/03\/04\/data-center-a-rapidly-growing-semiconductor-field\/\">Data center, a rapidly growing semiconductor field<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/04\/18\/applied-materials\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does Applied Materials, lord of semiconductor equipment, make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/12\/lam-research-chip-equipment\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does Lam Research, top chip equipment player, make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/09\/25\/the-lucrative-semiconductor-industry\/\" target=\"_blank\" rel=\"noreferrer noopener\">The lucrative semiconductor supply chain<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/01\/25\/global-semiconductor-chip-market-in-detail\/\" target=\"_blank\" rel=\"noreferrer noopener\">Global semiconductor chip market in detail, big dominators and markets<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/05\/07\/semiconductor-investment\/\" target=\"_blank\" rel=\"noreferrer noopener\">6 common wrong semiconductor investment myths<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/23\/3rd-gen-semiconductor\/\" target=\"_blank\" rel=\"noreferrer noopener\">Gen 3 semiconductor<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/06\/14\/eda-synopsys-cadence-mentor\/\">Three EDA oligopoly vendors: Synopsys, Cadence, and Siemens&#8217;s Mentor Graphics<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/01\/22\/how-cadence-make-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does, the EDA oligopoly, Cadence make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/22\/how-synopsis-make-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does Synopsis, the EDA oligopoly, make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/06\/04\/how-dell-make-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does the resurrected Dell make money?<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<p><em>Disclaimer<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;99% of all internet traffic crosses through some type of Broadcom technology&#8221;, Broadcom said. The reason behind the long-term continued outperformance of Broadcom share price is that I vote for Broadcom CEO Hock E. Tan.<\/p>\n","protected":false},"author":1,"featured_media":27431,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[110,104,222,454,1305,163,678,35,88,164,122,165],"tags":[328,371,379,97,95,721,3,169,339,209,333],"class_list":["post-27423","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-semiconductor","category-artificial-intelligence","category-ceo","category-communication","category-diversified-conglomerate-group","category-dividend","category-ip-moats-and-competitive-advantages","category-long-term-investing","category-acquisition","category-repurchase","category-software","category-stock-split","tag-adbe","tag-avgo","tag-crm","tag-goog","tag-googl","tag-meta","tag-msft","tag-nvda","tag-orcl","tag-qcom","tag-sap"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/27423","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=27423"}],"version-history":[{"count":55,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/27423\/revisions"}],"predecessor-version":[{"id":39595,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/27423\/revisions\/39595"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/27431"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=27423"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=27423"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=27423"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}