In the fast-evolving semiconductor industry, Broadcom Inc. (AVGO) and Micron Technology, Inc. (MU) stand out as influential players driving innovation and market growth. Both companies operate within overlapping markets but pursue distinct strategies—Broadcom focuses on diversified semiconductor and infrastructure software solutions, while Micron specializes in memory and storage technologies. This article will analyze their strengths and risks to help you decide which stock is more compelling for your investment portfolio.
Table of contents
Companies Overview
I will begin the comparison between Broadcom Inc. and Micron Technology, Inc. by providing an overview of these two companies and their main differences.
Broadcom Inc. Overview
Broadcom Inc. is a global technology company specializing in semiconductor and infrastructure software solutions. Headquartered in San Jose, California, it operates through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other. Broadcom’s products serve diverse markets including data centers, telecommunications, smartphones, and industrial automation, supported by a workforce of 37,000 employees.
Micron Technology, Inc. Overview
Micron Technology, Inc., based in Boise, Idaho, designs and manufactures memory and storage products globally. The company has four main segments: Compute and Networking, Mobile, Storage, and Embedded Business Units. Micron focuses on DRAM, NAND, and NOR memory technologies for cloud servers, mobile devices, and automotive markets, employing 48,000 people worldwide.
Key similarities and differences
Both companies operate in the semiconductor industry and serve technology-driven markets. Broadcom offers a broad product portfolio including semiconductors and infrastructure software, while Micron specializes in memory and storage solutions. Broadcom’s business is diversified across wired and wireless infrastructure, whereas Micron has a focused approach on memory technologies with a strong emphasis on memory product segments.
Income Statement Comparison
The table below compares key income statement metrics for Broadcom Inc. and Micron Technology, Inc. for their most recent fiscal year, providing a snapshot of their financial performance.
| Metric | Broadcom Inc. (AVGO) | Micron Technology, Inc. (MU) |
|---|---|---|
| Market Cap | 1.60T | 373B |
| Revenue | 63.9B | 37.4B |
| EBITDA | 34.7B | 18.5B |
| EBIT | 25.9B | 10.1B |
| Net Income | 23.1B | 8.54B |
| EPS | 4.91 | 7.65 |
| Fiscal Year | 2025 | 2025 |
Income Statement Interpretations
Broadcom Inc.
Broadcom’s revenue and net income have shown strong growth from 2021 to 2025, with revenue rising from $27.45B to $63.89B and net income increasing from $6.44B to $23.13B. Margins have improved notably, with a gross margin near 67.8% and net margin at 36.2%. In 2025, Broadcom’s earnings and margins expanded significantly, reflecting robust operational efficiency and accelerated profit growth.
Micron Technology, Inc.
Micron’s revenue grew from $27.7B in 2021 to $37.38B in 2025, while net income advanced from $5.86B to $8.54B. Despite a more modest overall revenue growth compared to Broadcom, Micron maintained favorable margins, with a gross margin of about 39.8% and net margin at 22.8% in 2025. The latest year saw strong margin and earnings expansion following a period of losses, indicating a sharp recovery.
Which one has the stronger fundamentals?
Broadcom demonstrates stronger fundamentals with higher margins and robust long-term growth in both revenue and net income, supported by consistent margin expansion and superior profitability ratios. Micron, while showing a commendable turnaround and solid margin improvements, lags behind Broadcom’s scale and profit efficiency. Both companies present favorable income statement trends, but Broadcom’s financial strength is more pronounced.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Broadcom Inc. (AVGO) and Micron Technology, Inc. (MU) based on their most recent fiscal year data.
| Ratios | Broadcom Inc. (AVGO) 2025 | Micron Technology, Inc. (MU) 2025 |
|---|---|---|
| ROE | 28.4% | 15.8% |
| ROIC | 16.4% | 12.1% |
| P/E | 73.9 | 15.9 |
| P/B | 21.0 | 2.51 |
| Current Ratio | 1.71 | 2.52 |
| Quick Ratio | 1.58 | 1.79 |
| D/E (Debt-to-Equity) | 0.80 | 0.28 |
| Debt-to-Assets | 38.1% | 18.5% |
| Interest Coverage | 7.94 | 20.7 |
| Asset Turnover | 0.37 | 0.45 |
| Fixed Asset Turnover | 25.3 | 0.79 |
| Payout Ratio | 48.2% | 6.1% |
| Dividend Yield | 0.65% | 0.38% |
Interpretation of the Ratios
Broadcom Inc.
Broadcom’s ratios show strength in profitability with a net margin of 36.2% and a return on equity at 28.45%, both favorable. Liquidity is solid with a current ratio of 1.71, but high price multiples like a P/E of 73.87 raise valuation concerns. The dividend yield is low at 0.65%, reflecting moderate shareholder returns with potential payout risks.
Micron Technology, Inc.
Micron presents favorable profitability ratios, including a 22.84% net margin and 15.76% ROE, supported by strong liquidity ratios such as a current ratio of 2.52. Despite a WACC judged unfavorable at 10.52%, its valuation multiples remain reasonable. The dividend yield is modest at 0.38%, indicating some shareholder return amid cautious capital structure metrics.
Which one has the best ratios?
Micron Technology holds a more favorable overall ratio profile with 57.14% favorable metrics compared to Broadcom’s 50%. While Broadcom excels in profitability and fixed asset turnover, Micron offers stronger liquidity and a healthier debt profile. Both face valuation and dividend yield challenges, suggesting balanced but distinct risk-return characteristics.
Strategic Positioning
This section compares the strategic positioning of Broadcom Inc. and Micron Technology, Inc., including market position, key segments, and exposure to technological disruption:
Broadcom Inc. (AVGO)
- Leading semiconductor and infrastructure software player facing competitive pressures in multiple tech segments.
- Diverse segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, Industrial & Other drive revenue.
- Exposure to disruption via semiconductor innovation and software integration in networking and data centers.
Micron Technology, Inc. (MU)
- Major memory and storage manufacturer with competitive pressures in DRAM and NAND markets.
- Focused on memory products: DRAM, NAND, NOR across compute, mobile, storage, and embedded markets.
- Exposure centered on memory technology evolution and storage solutions innovation.
Broadcom Inc. vs Micron Technology, Inc. Positioning
Broadcom pursues a diversified strategy across semiconductors and infrastructure software, offering broad market reach but facing complexity. Micron concentrates on memory and storage, enhancing specialization but limiting segment diversity.
Which has the best competitive advantage?
Broadcom demonstrates a very favorable moat with strong, growing ROIC exceeding WACC by 7.08%, indicating durable competitive advantage. Micron shows a slightly favorable moat with lower excess returns, reflecting improving but less established profitability.
Stock Comparison
The stock price movements of Broadcom Inc. (AVGO) and Micron Technology, Inc. (MU) over the past 12 months reveal significant gains with contrasting recent trading dynamics, highlighting differing momentum and market participation patterns.
Trend Analysis
Broadcom Inc. (AVGO) experienced a bullish trend over the past year, with a 162.18% price increase and decelerating momentum. The stock reached a high of 402.96 and a low of 120.47, showing notable volatility with a 78.56 standard deviation.
Micron Technology, Inc. (MU) showed a stronger bullish trend over the same period, with a 287.62% price increase and accelerating momentum. It recorded a high of 345.09 and a low of 64.72, accompanied by a lower volatility of 57.56 standard deviation.
Comparing the two, Micron Technology delivered the highest market performance with a larger percentage gain and accelerating trend versus Broadcom’s deceleration, indicating stronger recent price appreciation.
Target Prices
Analysts provide a generally optimistic consensus on target prices for Broadcom Inc. and Micron Technology, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Broadcom Inc. | 510 | 370 | 454.8 |
| Micron Technology, Inc. | 450 | 190 | 328.22 |
The consensus target prices for Broadcom and Micron are significantly above their current stock prices of $339.89 and $333.35 respectively, indicating analysts expect appreciable upside potential in both stocks.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Broadcom Inc. and Micron Technology, Inc.:
Rating Comparison
Broadcom Inc. Rating
- Rating: B, considered Very Favorable by analysts.
- Discounted Cash Flow Score: Moderate at 3.
- ROE Score: Very Favorable at 5, indicating high profit efficiency.
- ROA Score: Very Favorable at 5, strong asset utilization.
- Debt To Equity Score: Very Unfavorable at 1, higher financial risk.
- Overall Score: Moderate at 3.
Micron Technology, Inc. Rating
- Rating: B, also rated Very Favorable by analysts.
- Discounted Cash Flow Score: Very Unfavorable at 1.
- ROE Score: Favorable at 4, showing good profit efficiency.
- ROA Score: Very Favorable at 5, strong asset utilization.
- Debt To Equity Score: Moderate at 3, lower financial risk.
- Overall Score: Moderate at 3.
Which one is the best rated?
Both Broadcom and Micron have the same overall rating of B and overall score of 3, but Broadcom scores higher in ROE while Micron has a better Debt to Equity score. Their strengths differ, making neither clearly superior based solely on these metrics.
Scores Comparison
Here is a comparison of the financial scores for Broadcom Inc. and Micron Technology, Inc.:
AVGO Scores
- Altman Z-Score: 12.13, indicating a safe zone status with very low bankruptcy risk.
- Piotroski Score: 8, categorized as very strong financial health and value.
MU Scores
- Altman Z-Score: 10.50, indicating a safe zone status with very low bankruptcy risk.
- Piotroski Score: 7, categorized as strong financial health and value.
Which company has the best scores?
Broadcom Inc. holds a higher Altman Z-Score and a stronger Piotroski Score compared to Micron Technology, Inc., indicating relatively better financial health based on the provided data.
Grades Comparison
Here is a detailed comparison of the grades assigned to Broadcom Inc. and Micron Technology, Inc.:
Broadcom Inc. Grades
The following table shows recent grades from reputable grading companies for Broadcom Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Mizuho | Maintain | Outperform | 2026-01-09 |
| Truist Securities | Maintain | Buy | 2025-12-19 |
| UBS | Maintain | Buy | 2025-12-15 |
| Benchmark | Maintain | Buy | 2025-12-12 |
| Rosenblatt | Maintain | Buy | 2025-12-12 |
| Piper Sandler | Maintain | Overweight | 2025-12-12 |
| TD Cowen | Maintain | Buy | 2025-12-12 |
| B of A Securities | Maintain | Buy | 2025-12-12 |
| JP Morgan | Maintain | Overweight | 2025-12-12 |
| Mizuho | Maintain | Outperform | 2025-12-12 |
Broadcom’s grades consistently show a strong buy or outperform stance across multiple firms, indicating broad analyst confidence.
Micron Technology, Inc. Grades
Here is a summary of the recent grading data for Micron Technology, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Keybanc | Maintain | Overweight | 2026-01-13 |
| B of A Securities | Maintain | Buy | 2026-01-13 |
| Lynx Global | Maintain | Buy | 2026-01-12 |
| Mizuho | Maintain | Outperform | 2026-01-09 |
| UBS | Maintain | Buy | 2026-01-07 |
| Piper Sandler | Maintain | Overweight | 2026-01-07 |
| Piper Sandler | Maintain | Overweight | 2025-12-18 |
| Barclays | Maintain | Overweight | 2025-12-18 |
| Keybanc | Maintain | Overweight | 2025-12-18 |
| Wolfe Research | Maintain | Outperform | 2025-12-18 |
Micron’s ratings also predominantly reflect buy or outperform recommendations, showing positive analyst sentiment.
Which company has the best grades?
Both Broadcom Inc. and Micron Technology, Inc. have received broadly favorable grades, primarily “Buy,” “Overweight,” and “Outperform.” Broadcom shows slightly more consistent “Buy” and “Outperform” grades, while Micron has a few more “Overweight” ratings. This suggests investors might view Broadcom as having a marginally stronger analyst consensus, potentially impacting portfolio positioning decisions.
Strengths and Weaknesses
Below is a comparison of the key strengths and weaknesses of Broadcom Inc. (AVGO) and Micron Technology, Inc. (MU) based on the most recent data available.
| Criterion | Broadcom Inc. (AVGO) | Micron Technology, Inc. (MU) |
|---|---|---|
| Diversification | High diversification with strong segments in Infrastructure Software ($27B) and Semiconductor Solutions ($37B) | Focused mainly on memory products: DRAM ($28.6B) and NAND ($8.5B) |
| Profitability | Very favorable profitability: net margin 36.2%, ROIC 16.36%, ROE 28.45% | Favorable profitability: net margin 22.8%, ROIC 12.12%, ROE 15.76% |
| Innovation | Demonstrates a durable competitive advantage with growing ROIC (+34.4%) | Slightly favorable moat; growing ROIC (+8.2%) but still shedding value vs. WACC |
| Global presence | Strong global footprint through diversified product lines in infrastructure and semiconductors | Global presence concentrated in memory markets with steady revenue growth |
| Market Share | Large and growing market share in semiconductor solutions and infrastructure software sectors | Leading market share in DRAM and NAND sectors but with higher competition |
Key takeaways: Broadcom shows a stronger and more diversified business model with superior profitability and a very favorable economic moat. Micron is improving with favorable profitability ratios but still faces challenges in sustaining value creation, given its narrower product focus and competitive pressures. Investors seeking stability and growth may lean toward Broadcom, while Micron presents potential upside with improving fundamentals but higher risk.
Risk Analysis
Below is a comparison table of key risks for Broadcom Inc. (AVGO) and Micron Technology, Inc. (MU) based on the latest available data for 2025:
| Metric | Broadcom Inc. (AVGO) | Micron Technology, Inc. (MU) |
|---|---|---|
| Market Risk | Beta 1.22, moderate volatility | Beta 1.50, higher volatility |
| Debt level | Debt-to-equity 0.80, neutral | Debt-to-equity 0.28, favorable |
| Regulatory Risk | Moderate, exposure to tech regulations | Moderate, memory sector sensitive to export controls |
| Operational Risk | Complex supply chain, favorable liquidity ratios | Memory manufacturing complexity, favorable liquidity |
| Environmental Risk | Exposure to energy use in manufacturing | Similar exposure, with focus on sustainability |
| Geopolitical Risk | US-based, global supply chain risks | US-based, sensitive to US-China tensions |
In synthesis, Micron faces higher market volatility and geopolitical risks due to its memory business and exposure to international trade tensions, but benefits from lower debt levels. Broadcom shows moderate market risk and neutral debt but carries valuation risks and operational complexity. Both companies maintain strong financial health, yet investors should weigh geopolitical and sector-specific regulatory risks carefully.
Which Stock to Choose?
Broadcom Inc. (AVGO) shows strong income evolution with a 23.87% revenue growth in 2025 and favorable profitability metrics including a 36.2% net margin and 28.45% ROE. Its debt level is moderate with a net debt to EBITDA ratio of 1.41, and the overall rating is very favorable despite some valuation concerns.
Micron Technology, Inc. (MU) exhibits impressive income growth, notably a 48.85% revenue increase in 2025, and solid profitability with a 22.84% net margin and 15.76% ROE. The company maintains low debt with a net debt to EBITDA of 0.30, and it holds a very favorable rating supported by a more balanced valuation profile.
Considering ratings and financials, AVGO’s very favorable moat and higher profitability might appeal to investors seeking durable competitive advantages and quality investing. Conversely, MU’s favorable rating, lower leverage, and strong recent income growth could be attractive for those prioritizing growth and moderate risk exposure.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Broadcom Inc. and Micron Technology, Inc. to enhance your investment decisions:
