Should I buy Broadcom stock in 2025?

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At HelloSafe, our expert has been monitoring Broadcom's performance for over three years. Every month, hundreds of thousands of Canadians rely on us to interpret market trends and uncover the best investment opportunities. Our analyses are intended for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never received, and will never receive, any compensation from Broadcom.

What is Broadcom?

How much is Broadcom stock?

The price of Broadcom stock is rising this week. As of now, AVGO trades at $190.73 USD, reflecting a 24-hour change of -0.23% and a weekly decline of 7.81%. Broadcom’s market capitalization stands at $898.87 billion, with a three-month average daily volume of 31.75 million shares.

While recent volatility is notable, Broadcom’s position in the high-growth AI sector and robust fundamentals may provide attractive opportunities for Canadian investors.

Our full analysis on Broadcom stock

Broadcom Inc. (AVGO) stands at a fascinating crossroads, having just released a set of quarterly results that underscore impressive momentum in both its core semiconductor business and rapidly expanding software division. Over the past three years, the stock has delivered superior returns, outperforming both the broader technology market and most of its direct competitors. Leveraging a proprietary multi-factor analysis incorporating financial, technical, and sector data, we revisit Broadcom’s investment case: so, why might Broadcom stock once again become a strategic entry point into the global technology infrastructure sector in 2025?

Recent Performance and Market Context

Broadcom’s stock has demonstrated remarkable resilience — and opportunity — even amid the broader market’s volatility. As of April 30, 2025, AVGO trades at $190.73, retracing from earlier peaks but still boasting a robust +48% performance over the past twelve months, and nearly +9% over six months. The weekly pullback of -7.81% appears largely technical, with the stock consolidating after a powerful rally in Q1.

• Q1 2025 earnings surpassed expectations, with top-line growth (+25% YoY) fuelled by surging demand for AI-related semiconductors and a breakthrough in software integration following the VMware acquisition.
• The VMware integration is proving transformational: infrastructure software revenue soared 47% YoY, now composing 45% of consolidated revenue — a diversification milestone enhancing visibility and resilience.
• Robust macroeconomic and sector backdrop: broad-based enterprise spend on digital transformation, cloud migration, and artificial intelligence infrastructure is accelerating. Key customers — including hyperscale cloud providers — are boosting capital expenditure cycles, directly benefitting Broadcom’s core franchises.

Combined, these factors have positioned Broadcom as an attractive growth engine and a prominent technology market bellwether as 2025 unfolds.

Technical Analysis

A review of AVGO’s technical chart reveals a multi-faceted, but increasingly constructive, setup:

• Momentum Indicators: The 14-day RSI sits at 61.31, signaling neutral to gently bullish conditions — a level that often precedes renewed accumulation phases rather than exhaustion.
• MACD Reading: With the MACD line (4.5) above the signal line, bullish momentum remains intact, supporting the case for further upside in the coming weeks.
• Moving Averages:
• Price trades comfortably above the 20-day ($180.7) and 50-day ($178.6) SMAs, suggesting underlying buyer support.
• However, the “death cross” (50-day SMA below the 200-day SMA of $196.2) denotes lingering technical caution; the price currently sits just below key longer-term averages (100/200-day), setting up a potential inflection point.
• Support and Resistance: Solid support is evident at $184.02 (recent low) and $162.33 (longer-term). Upside resistance at $191.68 (recent high) and $248.6 (all-time high) provides clear technical targets for any renewed rally.
• Momentum Structure: The CCI reading (62.3) confirms a moderately bullish tilt, and consolidation above the 20- and 50-day averages often precedes sustained upside when supported by strong fundamentals.

The convergence of these signals — with price stabilizing above key short-term averages and neutral longer-term momentum — seems to represent an excellent opportunity for investors looking to position ahead of the next catalyst.

Fundamental Analysis

From a fundamental perspective, Broadcom’s performance remains nothing short of formidable:

• Revenue Growth: Q1 FY2025 revenues reached $14.92 billion, up 25% year-over-year. Semiconductor Solutions rose 11%, while Infrastructure Software jumped 47% — underscoring effective portfolio diversification.
• Profitability: With adjusted EBITDA at $10.08 billion (68% margin) and free cash flow of $6.01 billion (40% of revenue), Broadcom demonstrates formidable operating leverage and cash generation.
• Valuation: The current P/E ratio stands at 92.07, capturing the market’s expectations for ongoing robust growth and margin expansion. While this is a premium valuation, it is justified by:
• Strong double-digit top- and bottom-line growth
• Exposure to high-velocity AI market trends
• Recurring software revenues from VMware
• Analyst consensus target price of $238.54 (+25% upside from current levels) reinforces this outlook.
• Structural Strengths:
• Innovation leadership in AI data connectivity and custom silicon for hyperscale clients
• Broad portfolio balance between semiconductors (55% of revenues) and software (45%)
• Resilient brand recognition and customer stickiness through mission-critical enterprise offerings
• Active, growing dividend (current yield: 1.23%, latest increase: +11%)

Simply put, Broadcom’s fundamentals justify renewed interest from investors seeking sustainable growth paired with capital return discipline.

Volume and Liquidity

One of Broadcom’s underappreciated strengths is the stock’s exceptionally robust liquidity profile:

• Sustained Trading Volume: With an average daily volume of 31.75 million shares, AVGO boasts deep, consistent order flow, indicating strong institutional interest and reliable price discovery.
• Market Capitalization: At nearly $900 billion, Broadcom is now among the elite tier of global technology companies, further enhancing its appeal to large-cap growth, income, and index-oriented investors.
• Shares Outstanding and Free Float: The wide float of 4.7 billion shares allows for dynamic valuation adjustment and efficient hedging by active market participants.

This combination of liquidity and capitalization reinforces confidence that AVGO is well-placed to benefit from renewed sector momentum, and that any near-term volatility is likely to remain well-contained.

Catalysts and Positive Outlook

The outlook for Broadcom is replete with visible growth levers and bullish catalysts:

• AI Portfolio Acceleration: Q1 AI revenues of $4.1 billion (+77% YoY) confirm Broadcom’s status as a premier supplier to next-generation AI data centers. Q2 AI guidance of $4.4 billion signals further anticipated growth.
• VMware Integration: The VMware acquisition is delivering material synergies, with cross-selling traction and expanded total addressable market in hybrid cloud, security, and automation.
• Product Innovation: Broadcom continues to launch industry-leading silicon solutions, network chips, and enterprise software tailored for hyperscale and Fortune 500 clients.
• Environmental and Governance Initiatives: Advancements in ESG practices — including significant reductions in energy use across manufacturing sites and enhanced workforce diversity targets — align with rising institutional investor preferences.
• Market Environment: Global enterprise IT spending remains robust, with AI, automation, and security budgets expanding at double-digit rates. Regulatory frameworks increasingly support cross-border data management and cloud infrastructure growth, creating a favorable ecosystem for Broadcom’s offerings.

These accelerators, combined with cautious but optimistic guidance from management, point toward sustained multi-year revenue and margin expansion.

Investment Strategies

Investors can consider deploying multiple entry tactics depending on investment horizon and risk tolerance:

Short-Term Positioning

• Technical Opportunities: Recent consolidation around the $185–$191 range, near major support levels, could offer an attractive technical low for those positioning ahead of anticipated Q2 AI revenue increases and further VMware synergies.
• Catalyst Timing: Upcoming quarterly earnings and large client deals (especially in AI infrastructure) can serve as powerful share-price drivers in the weeks ahead.

Medium-Term Perspective

• Re-Rating Potential: As AI and software revenues converge to represent an even larger share of group sales, the potential for multiple expansion and valuation re-rating remains strong, especially if execution on cross-selling persists.
• Dividend Growth: The company’s clear policy favoring dividend increases (11% recently) adds a layer of medium-term income visibility.

Long-Term Strategy

• Structural Growth: Secular tailwinds in AI, data connectivity, and mission-critical infrastructure are forecasted to persist over multiple cycles. With leading market share, deep R&D investment, and strategic customer partnerships, Broadcom appears well-positioned for durable compounding.
• Defensive Qualities: Diversified revenue mix and strong cash generation afford resilience during potential market downturns, making AVGO particularly suited to “buy and hold” strategies.

Collectively, these factors suggest that AVGO’s current levels may be a compelling entry point before a new wave of sector or company-specific catalysts.

Is it the Right Time to Buy Broadcom?

Taking all these elements in balance, the case for Broadcom’s share price entering a new bullish phase is compelling:

• Key Strengths: Exceptional financial execution, transformative software strategy (VMware), leadership in AI semiconductors, robust dividend growth, and a fortress-like liquidity profile.
• Technical Set-Up: Recent consolidation above key short-term moving averages, with momentum indicators tilting bullish and support at $184, could offer an ideal pathway for opportunistic accumulation.
• Positive Outlook: The company’s mix of aggressive AI expansion, diversification into software, structural sector tailwinds, and disciplined capital return policies sets AVGO apart from many of its peers. While the premium P/E reflects high expectations, ongoing delivery on growth and innovation could result in further upside to consensus targets. In the Canadian investment landscape, Broadcom readily fits within diversified portfolios seeking long-term growth and income exposure to global digital infrastructure.

In summary, Broadcom’s current valuation, technical structure, and multi-year growth outlook seem to represent an excellent opportunity for investors who value market leadership in one of the world’s most dynamic sectors. The blend of AI-driven growth, software diversification, and capital discipline provides a unique combination that justifies serious consideration of AVGO as a core holding for the periods ahead.

How to buy Broadcom stock in Canada?

Buying Broadcom (AVGO) stock online has never been simpler or more secure for Canadian investors. Thanks to regulated brokers, you can open an account, deposit funds in Canadian dollars, and access global markets—all from your computer or mobile device. There are two main ways to buy Broadcom shares: a direct cash purchase (spot buying) for traditional long-term investing, or trading Contracts for Difference (CFDs) for leveraged short-term opportunities. Each method has its own advantages and risks. To help you choose the best platform, be sure to consult our comprehensive broker comparison further down this page.

Cash Buying

A cash purchase means you buy actual Broadcom shares and hold them in your brokerage account, entitled to dividends and price appreciation. This is the preferred route for long-term investors seeking real ownership. Typical fees for Canadian investors include a fixed-dollar commission per trade, often around CAD $5 to $10 per order with most online brokers.

Informations importantes

Example: If Broadcom shares trade at around $190.73 USD (approx. $260.00 CAD), with a $1,000 CAD stake, you can buy about 3 shares (3 × $260.00 = $780.00 CAD), including a brokerage commission of $5.
Gain scenario: If the share price rises by 10%, your shares are now worth $858 CAD.
Result: +$78 gross gain (before fees and currency exchange), representing a +10% return on your investment.

Trading via CFD

CFD trading lets you speculate on Broadcom's price movements without owning the underlying shares. You can go long (buy) or short (sell), and apply leverage to magnify both potential gains and risks. CFD trading platforms typically charge a spread (the difference between buy and sell price), along with overnight financing fees if positions are held beyond a single trading day.

Informations importantes

Example: With a $1,000 CAD deposit and using 5× leverage, you open a CFD position on Broadcom shares, giving market exposure of $5,000 CAD.
Gain scenario: If Broadcom stock rises by 8%, your position increases in value by 8% × 5 = 40%.
Result: +$400 gain on your $1,000 investment (excluding spreads and overnight charges).

Final Advice

Before investing in Broadcom shares, it’s essential to compare different brokers’ fees, features, and support for Canadian residents. Be mindful of transaction costs, conversion rates (if trading in USD), and platform reliability. Your choice between cash buying and CFDs depends on your investment goals: long-term wealth building vs. short-term trading opportunities. For more details, please refer to the broker comparison tool available further down the page.

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Our 7 tips for buying Broadcom stock

The latest news about Broadcom

Broadcom reported exceptional first-quarter 2025 financial results, with revenue up 25% year-over-year, fueled by strong AI demand. Revenue for Q1 reached $14.92 billion, with net income at $5.50 billion and remarkable free cash flow at $6.01 billion, representing 40% of total revenue. This performance was largely attributed to growth in both core semiconductor solutions and the infrastructure software segment—boosted by the full integration of VMware. For Canadian analysts and investors, this robust financial showing is especially relevant given Broadcom's significant presence in the Canadian enterprise software market following the VMware merger, enhancing product and service offerings that are critical to domestic banks, telecoms, and government technology infrastructure.

AI-driven revenue growth stood out with a 77% year-over-year surge, positioning Broadcom as a vital supplier for data center modernization in North America. The company achieved $4.1 billion in AI-specific revenues in Q1 2025, with forecasts indicating further increases in subsequent quarters. This explosive AI exposure is notable for Canadian investors, especially as national hyperscale data center operators and technology firms ramp up investments in artificial intelligence and machine learning infrastructure. Broadcom's chipsets and connectivity solutions are essential components in these deployments, supporting the rapidly growing demand for advanced, energy-efficient computing in Canada.

The successful integration of VMware has strategically expanded Broadcom’s infrastructure software footprint in Canada. Broadcom’s acquisition of VMware continues to pay dividends, particularly in the Canadian market where VMware has strong relationships with large financial institutions and public sector clients. This deep local presence now provides Broadcom with a significant software recurring revenue base and cross-selling opportunities, while supporting key compliance, security, and digital transformation initiatives across Canadian businesses that demand robust hybrid cloud and virtualization solutions.

Despite a recent short-term decline, analysts maintain a strongly positive outlook for Broadcom, with consensus price targets indicating significant upside from current levels. While the stock saw a weekly drop of 7.81%, presumably reflecting broader market volatility or short-term profit taking, the consensus target price of $238.54 suggests an upside of about 25% from current prices. Technical momentum remains moderately bullish, as MACD and RSI indicators suggest the recent pullback may present a buying opportunity for long-term investors, including those in Canada with exposure through direct NASDAQ holdings or ETFs.

Dividend stability and robust free cash flow remain reassuring for Canadian income-focused investors, with attractive yield and payout growth. Broadcom continues to deliver shareholder value via quarterly dividends, recently increased by 11%, and now yielding 1.23%. This, combined with a consistently high cash conversion rate, underlines the company's capacity to sustain and grow its payouts—an important consideration for Canadian investors prioritizing stable, tax-efficient U.S. income streams within registered plans (RRSPs or TFSAs) or other taxable accounts, especially given U.S-Canada tax treaty provisions.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.