+ Annual bonus + New hire equity grant + Annual equity awards
Broadcom is a global technology company that designs, develops, and sells semiconductor devices and infrastructure software. Its semiconductor products power networking, data centers, broadband, wireless communications, and storage, while its software offerings include tools for managing and optimizing large-scale IT environments. Broadcom’s DX Unified Infrastructure Management product provides observability across traditional, public cloud, and hybrid infrastructure to help ensure performance and reliability. The company differentiates itself through a broad, integrated portfolio that combines high-performance hardware with complementary software solutions, enabling customers to build and operate complex technology stacks. Its goal is to help customers deploy efficient, reliable, and scalable technology infrastructure that supports modern digital workloads across enterprises, data centers, and telecommunications networks.
Company Size
10,001+
Company Stage
IPO
Headquarters
Palo Alto, California
Founded
2005
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The US government's push for an "AI Force" and dedicated AI leadership is reshaping investment flows toward companies exposed to federal defense and AI infrastructure spending. The policy shift spotlights chip makers, cloud providers, and contractors capable of meeting federal demand. Nvidia stands as the clearest play on this theme. Its GPUs, networking equipment, and software already support federal and defense AI workloads. The company's data centre segment generates approximately $275.4 billion in revenue, though analysts warn that competition to its CUDA platform could threaten its market position. Broadcom offers another route into federal AI infrastructure. The firm supplies custom chips, networking hardware, and private cloud software to both commercial hyperscalers and government buyers. It generates roughly $59.4 billion from semiconductor solutions and $29.7 billion from infrastructure software, with a market capitalisation near $1.71 trillion.
Applied Materials and Broadcom, both artificial intelligence-focused companies, show contrasting revenue trajectories. Applied Materials develops specialised manufacturing equipment and software for integrated circuit producers, reporting a 34% operating margin for the quarter ended 26 July 2026. Broadcom designs semiconductor networking components and infrastructure software for technology enterprises and telecommunications providers, achieving a 54% operating margin for the quarter ended 2 August 2026. Broadcom demonstrated stronger sales growth, with revenue rising consistently from $14.1 billion in Q3 2024 to $29.6 billion in Q2 2026. Applied Materials showed more volatile performance, fluctuating between $6.8 billion and $9.1 billion across the same period. Broadcom faces challenges including workforce reductions and a legal request from European cloud providers regarding its VMware Cloud Service Provider programme termination.
Broadcom's CEO Hock Tan says enterprise AI adoption is driving growth in the company's VMware-anchored software business through private cloud deployments. Broadcom's infrastructure software revenue grew 29% year-over-year to $8.8 billion, though AI chip sales remain dominant at 56% of total revenue. Next quarter, software's share of total revenue is expected to fall to 25%, whilst AI chips would rise to 62%. Industry evidence from sources including IDC, Kyndryl, and Hewlett Packard Enterprise offers only partial support for Broadcom's claim of accelerating private cloud AI adoption. Tan stated that "enterprise consumption of AI is, in fact, opening a new opportunity for our infrastructure software business," as companies work to deploy more AI workloads in private clouds.
Broadcom is positioning itself as an alternative to Nvidia in the AI chip market by supplying custom XPUs to six hyperscalers at half the cost of GPUs. The company's AI semiconductor revenue jumped 221% to $16.7 billion last quarter. Chief executive Hock Tan stated that custom accelerators optimised for specific large language model workloads can outperform GPUs at half the cost. Broadcom is already shipping chips to Google, Meta, and OpenAI. The company reported Q3 fiscal 2026 revenue of $29.59 billion, up 85.5% year over year, with free cash flow of $13.67 billion. Management projects AI semiconductor revenue will reach roughly $230 billion in fiscal 2028. Broadcom has increased its dividend for 15 consecutive years, currently paying $0.65 per share quarterly. The company has a market capitalisation of $1.66 trillion.
Broadcom is paying a dividend of $0.65 per share on 30 September to shareholders on record as of 21 September. To generate $5,000 in yearly dividends at the current $2.60 annual payout, investors would need 1,923 shares, worth approximately $652,416. The semiconductor company yields just 0.8%, but has raised its dividend for 15 consecutive years. Over the past decade, Broadcom's quarterly dividend grew at a 29% compound annual growth rate. In its latest quarter, Broadcom generated record free cash flow of $13.7 billion whilst spending only $0.5 billion on capital expenditures. The company has guided for $115 billion in AI revenue for fiscal 2027 and $230 billion for fiscal 2028, driven by custom chip orders from key customers including Alphabet, Meta Platforms, OpenAI, and Anthropic. Trading at 29.1 times forward earnings, Broadcom faces increased dependence on a handful of AI customers.