Ticker Teardown Dossier
Broadcom ($AVGO), taken apart the way the desk does.
Broadcom (AVGO) Teardown Dossier · As of 2026-11-02, refreshed after FQ3 2026 results
The AVGO dossier is the desk's Broadcom teardown written out as a document, plus what a five-minute video cannot carry: the last eight quarters of Broadcom's own SEC filings in one table (fiscal years for a foreign filer whose quarterly reports carry no structured data), a peer comparison with numbers, the level map rebuilt from the latest close, and a link to every filing used. Rebuilt after each quarterly print.
Look inside before you buy
1,933 words · about 8 min to read · 10 sections · data as of 2 November 2026 · last refreshed after FQ3 2026 results
Table of contents
- What is in this dossier
- What this is not
- 1. The teardown
- The setup
- The business: two companies, one ticker
- The financials: the number that matters
- Valuation: mind the multiple
- The bear case
- The chart: read off the 4h
- Where it sits
- The verdict
- 2. What changed since it was written
- 3. The filings: the last eight quarters
- 4. Valuation against the peers
- 5. Level map
- 6. Sources
- 7. What this dossier cannot do
- More dossiers in this theme
Excerpt
1. The teardown
Written 2026-09-09, with prices as of 2026-09-11. Figures in this part are as the desk read them that day; parts 2 to 5 carry the numbers as of 2026-11-02.
The setup
Broadcom. A $1.8 trillion company. And over the last three months, it has fallen 23%. At the same time, 46 analysts cover this stock, the consensus rating is strong buy, and the average target sits about 40% above where it trades right now. Which is it. A broken leader, or a leader on sale. Let me show you the two businesses, then the risk, then the levels.
The business: two companies, one ticker
Broadcom is really two companies wearing one ticker. The first designs custom AI chips for the biggest spenders on Earth. Google, and its TPU Meta, and its custom silicon. And a third hyperscaler the company will only call undisclosed. Treat that third customer as a rumor, not a fact. The second company is software. Broadcom bought VMware for $69 billion. It now runs near $20 billion in recurring revenue, at software margins close to 90%. One company sells the picks. The other sells the subscription.
The financials: the number that matters
Here is the number that matters. The AI chip business did $12 billion last fiscal year. Management guided it above 25 billion this year. That is a guide, not a result, and I am saying it as a guide. Longer out, the company puts its addressable market at 60 to $90 billion by fiscal 2027. On the networking side, its Tomahawk switches push ethernet into territory that used to belong to InfiniBand. That is the whole bull case in one line. Custom silicon, plus the fabric that connects it.
One table from the document
3. The filings: the last eight quarters
| USD millions, period ended | 2024-11-03 | 2025-02-02 | 2025-05-04 | 2025-08-03 | 2025-11-02 | 2026-02-01 | 2026-05-03 | 2026-08-02 |
|---|---|---|---|---|---|---|---|---|
| Fiscal period | FQ4 2024 | FQ1 2025 | FQ2 2025 | FQ3 2025 | FQ4 2025 | FQ1 2026 | FQ2 2026 | FQ3 2026 |
| Source filing | 10-K 2024-12-20 | 10-Q 2025-03-12 | 10-Q 2025-06-11 | 10-Q 2025-09-10 | 10-K 2025-12-18 | 10-Q 2026-03-11 | 10-Q 2026-06-09 | 10-Q 2026-09-10 |
| Revenue | 14,054 | 14,916 | 15,004 | 15,952 | 18,015 | 19,311 | 22,187 | 29,591 |
| Gross margin | 64.1% | 68.0% | 68.0% | 67.1% | 68.0% | 68.1% | 69.5% | 69.1% |
| Operating income | 4,627 | 6,260 | 5,829 | 5,887 | 7,508 | 8,563 | 10,788 | 15,955 |
| Net income | 4,324 | 5,503 | 4,965 | 4,140 | 8,518 | 7,349 | 9,310 | 13,088 |
| Operating cash flow | 5,604 | 6,113 | 6,555 | 7,166 | 7,703 | 8,260 | 10,493 | 14,197 |
| Capex | -122.0 | -100.0 | -144.0 | -142.0 | -237.0 | -250.0 | -231.0 | -532.0 |
| Free cash flow | 5,482 | 6,013 | 6,411 | 7,024 | 7,466 | 8,010 | 10,262 | 13,665 |
| Cash and equivalents | 9,348 | 9,307 | 9,472 | 10,718 | 16,178 | 14,174 | 19,628 | 23,975 |
| Debt (book, excl. leases) | 69,847 | 68,757 | 69,407 | 66,257 | 65,136 | 66,057 | 64,907 | 59,419 |
| Diluted shares (M) | 4,778* | 4,836 | 4,826 | 4,860 | 4,853* | 4,888 | 4,876 | 4,887 |
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What the dossier has that the video does not
The filings themselves: revenue, gross margin, operating income, net income, operating cash flow, capex, free cash flow, cash, debt and diluted shares, quarter by quarter, each column dated with the filing it comes from. A foreign filer whose quarterly reports carry no structured data gets its fiscal years, and the dossier says so.
Never stale
Every dossier carries an "as of" date and the quarter it was last refreshed after. It is rebuilt after each print, and the desk's daily check flags any dossier left more than 45 days without a refresh. The written teardown keeps its date, and a "what changed since" section gives the move in the price and the filings since.
What is inside
- The teardown in writing: the business, the bull case, the full bear case and the verdict, dated.
- What changed since it was written: the price move and every SEC filing since.
- Eight quarters of the company's own SEC filings in one table, each column dated, with a plain read of what the table says.
- Peers with numbers: market cap, revenue growth, operating margin, EV / sales and distance from the 52-week high.
- The level map rebuilt from the latest close: where the price sits against the 52-week range and each level.
- Sources: a link to every filing and results release used.
Buy it if
- You hold or watch $AVGO and want a structured read before acting.
- You want levels you can check on the chart, not an opinion.
Skip it if
- You want a buy signal. A dossier explains and maps; it does not signal.
- You want every name on the desk. The Teardown Library covers every dossier, current and future, for less than four dossiers.
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An educational research publication, not investment advice, trade signals, a managed account, or an advisory service. Nothing in it is a recommendation to buy or sell any security. See our disclosures.