Broadcom designs chips and sells infrastructure software for the companies that run large data centers, telecom networks and corporate IT. Its custom AI processors, built with cloud companies, and its Ethernet switch chips move and process data inside the computer clusters that train AI models. The chip business also makes parts for broadband, wireless, storage and industrial equipment, sold to device makers and cloud operators, while VMware software lets businesses run private clouds and is sold by subscription. Broadcom took its current form in 2016, when Avago Technologies, formed in 2005 from Agilent's chip unit, bought Broadcom Corporation, and it is based in Palo Alto, California.
Company Size
10,001+
Company Stage
IPO
Headquarters
Palo Alto, California
Founded
2005
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Broadcom introduced VMware HyperArmor on October 13, 2026, a software tool that protects the VMware ESX hypervisor in VMware Cloud Foundation from cyber attacks. It requires no downtime, software upgrades, or agents inside guest virtual machines. HyperArmor targets stolen root credentials and unpatched vulnerabilities, the two causes of most hypervisor attacks. It supports ESX 8.x and later. The tool offers three protections: virtual patching that blocks malicious actions before flaws can be exploited, a baseline that blocks unauthorised executables and scripts, and multi-factor authentication on SSH logins. "Reactive detection and patching are no longer enough," said Paul Turner, Broadcom's chief product officer for the VMware Cloud Foundation Division. HyperArmor allows only what is "known good" to run on the host.
An analyst at The Motley Fool names four chip stocks to hold for the next decade: Nvidia, Broadcom, Taiwan Semiconductor Manufacturing Company (TSMC), and ASML. The case rests on AI demand for advanced chips. Nvidia's latest quarterly revenue rose 106% to $96 billion, and net income grew 126% to almost $60 billion. Broadcom's revenue climbed 86% to $29.6 billion, with net income up 216% to $13.1 billion. TSMC, which holds a 72.5% share of the advanced chip market according to TrendForce, posted second-quarter revenue of $40 billion, up 36%. ASML, which dominates the machines that make those chips, reported net sales of €9.3 billion, up 21%. Risks include an AI bust and, for TSMC, exposure to Taiwan.
Broadcom chief executive officer Hock Tan said many AI investors resemble casino gamblers because they "have no clue what they are investing in." He spoke Monday at an event in Singapore, according to Bloomberg. Tan was most sceptical of backers of frontier large language models. He also compared enterprise AI spending to a child burning through arcade tokens with nothing learned. He called OpenAI's $50 billion annualised revenue in September encouraging, but said the company still loses money because of training costs. He warned that a shortage of capital could be the industry's next constraint. Last week, Nvidia-backed Firmus Grid Ltd. pulled its planned $5.5 billion IPO amid doubts over AI infrastructure valuations.
Broadcom looks a better buy than Intel in 2026, according to a comparison of the two chipmakers, thanks to its faster growth and lower forward price-to-earnings ratio (32.2x against 73.1x). In fiscal 2025, Broadcom's revenue rose about 24% to nearly $64 billion, with net income of roughly $23 billion. Intel's revenue fell about 0.5% to nearly $53 billion, with a net loss of roughly $267 million. Analysts expect Broadcom's revenue to jump 66% to $106 billion this year, driven by custom AI chips for hyperscalers. They see Intel's sales rising 19% to $62.3 billion, with an $11 billion net loss as it expands its US foundries. Intel's foundry push includes the Terafab AI chip plant project and a deal with Nvidia.
Advanced Micro Devices and Palantir Technologies could surpass Broadcom's $1.7 trillion valuation within five years, according to investment analysis. AMD recently crossed $1 trillion in market value and would need roughly 70% growth over five years to match Broadcom. The company secured a deal with OpenAI covering 6 gigawatts of GPU capacity, expected to generate tens of billions of dollars in revenue. The first gigawatt of AMD's MI450 chips will roll out in the second half of 2026. Palantir, currently valued at $455 billion, represents a bolder bet requiring a fourfold increase. The company reported 93% revenue growth year-over-year last quarter, with US commercial revenue up 149%. It closed $2.1 billion in new US commercial contract value in one quarter, up 271% from the previous year.