In the ever-evolving semiconductor industry, two titans stand out: Broadcom Inc. (AVGO) and QUALCOMM Incorporated (QCOM). Both companies share a common market space, focusing on innovative technologies that drive connectivity and data processing. While Broadcom excels in infrastructure solutions and software, QUALCOMM is renowned for its wireless communication technologies and licensing prowess. As we explore the strengths and strategies of these industry leaders, I’ll help you determine which company presents the most compelling investment opportunity.
Table of contents
Company Overview
Broadcom Inc. Overview
Broadcom Inc. (AVGO) is a global technology leader headquartered in San Jose, California. The company specializes in designing and manufacturing semiconductor and infrastructure software solutions, catering to a diverse range of industries, including wired and wireless communications, enterprise storage, and industrial applications. With approximately 37,000 employees, Broadcom operates through four main segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other. Its extensive product portfolio enables Broadcom to support essential technologies found in data centers, smartphones, and various electronic systems. The company’s commitment to innovation positions it as a major player in the semiconductor sector.
QUALCOMM Incorporated Overview
QUALCOMM Incorporated (QCOM), based in San Diego, California, focuses on developing and commercializing foundational technologies for the wireless industry. Founded in 1985, QUALCOMM operates through three segments: Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives (QSI). The QCT segment is renowned for its integrated circuits and system software that power wireless communication. In contrast, QTL manages the licensing of its extensive intellectual property portfolio, which is vital for mobile communications standards. With a workforce of around 49,000, QUALCOMM is pivotal in the evolution of 5G and emerging technologies.
Key similarities and differences
Both Broadcom and QUALCOMM operate within the semiconductor industry and emphasize innovation in technology solutions. However, their business models differ significantly; Broadcom focuses on hardware and software solutions across multiple market segments, while QUALCOMM emphasizes wireless communication technologies and licensing its intellectual property. This distinction highlights their unique approaches to capitalizing on the growing demand for advanced technology solutions.
Income Statement Comparison
The following table provides a comparative overview of the most recent income statements for Broadcom Inc. (AVGO) and QUALCOMM Incorporated (QCOM). This data is essential for understanding their financial performance.
| Metric | Broadcom Inc. (AVGO) | QUALCOMM Incorporated (QCOM) |
|---|---|---|
| Market Cap | 1.89T | 180.02B |
| Revenue | 51.57B | 44.28B |
| EBITDA | 23.88B | 14.93B |
| EBIT | 13.87B | 13.33B |
| Net Income | 5.90B | 5.54B |
| EPS | 1.27 | 5.06 |
| Fiscal Year | 2024 | 2025 |
Interpretation of Income Statement
Broadcom’s revenue increased significantly to 51.57B in FY 2024, reflecting strong demand in the semiconductor sector, while QUALCOMM’s revenue for FY 2025 was 44.28B, showing a solid performance but slower growth compared to previous years. Broadcom’s net income of 5.90B indicates a decrease in profitability due to rising operational costs, while QUALCOMM’s net income also reflects similar challenges, with a figure of 5.54B. Both companies maintain healthy margins, but the trends suggest that while Broadcom expanded its revenue, it may face margin pressure, whereas QUALCOMM is stabilizing after a period of rapid growth.
Financial Ratios Comparison
The following table presents a comparison of the most recent financial ratios for Broadcom Inc. (AVGO) and QUALCOMM Incorporated (QCOM).
| Metric | Broadcom (AVGO) | QUALCOMM (QCOM) |
|---|---|---|
| ROE | 8.71% | 26.13% |
| ROIC | 5.57% | 13.19% |
| P/E | 133.17 | 32.70 |
| P/B | 11.60 | 8.54 |
| Current Ratio | 1.17 | 2.82 |
| Quick Ratio | 1.07 | 2.10 |
| D/E | 0.998 | 0.70 |
| Debt-to-Assets | 40.79% | 29.54% |
| Interest Coverage | 3.41 | 18.61 |
| Asset Turnover | 0.31 | 0.88 |
| Fixed Asset Turnover | 20.46 | 9.44 |
| Payout ratio | 166.48% | 68.67% |
| Dividend yield | 1.25% | 2.10% |
Interpretation of Financial Ratios
Broadcom’s ratios show a solid market presence but reflect higher risk due to a high P/E ratio and payout ratio exceeding 100%, which could indicate unsustainable dividends. In contrast, Qualcomm exhibits stronger profitability with a significantly higher ROE and lower debt ratios, suggesting a more robust financial health and less leverage risk. Investors should weigh these factors carefully before making investment decisions.
Dividend and Shareholder Returns
Broadcom Inc. (AVGO) currently pays a dividend of $2.12 per share, yielding approximately 1.25%. Its payout ratio is notably high at 166%, indicating potential risks of unsustainable distributions. In contrast, QUALCOMM Incorporated (QCOM) offers a dividend of $3.47 per share, yielding around 2.10%, with a more manageable payout ratio of 69%. Both companies engage in share buybacks, which can enhance shareholder value, but careful monitoring is essential to ensure long-term sustainability.
Strategic Positioning
In the competitive semiconductor market, Broadcom Inc. (AVGO) and QUALCOMM Incorporated (QCOM) hold significant positions with distinct product focuses. Broadcom captures a market share in wired and wireless communications, leveraging a robust product portfolio across multiple sectors, while QUALCOMM leads in wireless technologies, particularly in 5G. Both companies face competitive pressure from emerging technologies and rivals but manage well through continuous innovation and strategic partnerships. With a focus on risk management, I recommend monitoring their technological advancements closely.
Stock Comparison
In this section, I will provide an overview of the weekly stock price movements and trading dynamics for Broadcom Inc. (AVGO) and QUALCOMM Incorporated (QCOM) over the past year, highlighting significant price changes and market behavior.
Trend Analysis
Broadcom Inc. (AVGO)
- The stock has experienced a remarkable price change of 284.03% over the past year, indicating a bullish trend.
- The highest price recorded was $402.96, while the lowest was $104.93.
- The trend is characterized by acceleration, with a standard deviation of 74.01, suggesting notable volatility in the stock’s price movements.
- Recently, from September 14, 2025, to November 30, 2025, the stock has increased by 11.97%, with a standard deviation of 19.35, further supporting the bullish outlook.
QUALCOMM Incorporated (QCOM)
- Over the past year, QCOM has seen a price change of 22.94%, also reflecting a bullish trend.
- The stock peaked at $215.33 and reached a low of $127.46.
- The trend shows acceleration with a standard deviation of 16.77, indicating moderate volatility.
- In the recent period from September 14, 2025, to November 30, 2025, QCOM’s stock price increased by 3.87%, along with a standard deviation of 6.46, which indicates stability in its recent performance.
Both companies exhibit strong upward trends, but it is crucial to consider their respective volatility and market conditions when making investment decisions.
Analyst Opinions
Recent analyst recommendations for Broadcom Inc. (AVGO) suggest a “Buy” rating, with strong scores in return on equity and return on assets, indicating solid performance potential. Analysts emphasize its robust financial health and growth prospects. Conversely, QUALCOMM Incorporated (QCOM) has garnered a “Hold” rating, with analysts noting its steady cash flow but cautioning about market volatility affecting growth. Overall, consensus for AVGO is a “Buy,” while QCOM leans towards “Hold” for 2025, reflecting varied confidence in their respective futures.
Stock Grades
In the current market landscape, reliable stock grades provide valuable insights for investors. Here’s a summary of the latest grades for Broadcom Inc. and QUALCOMM Incorporated.
Broadcom Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Goldman Sachs | maintain | Buy | 2025-11-26 |
| Mizuho | maintain | Outperform | 2025-10-21 |
| Citigroup | maintain | Buy | 2025-10-14 |
| Deutsche Bank | maintain | Buy | 2025-10-14 |
| Morgan Stanley | maintain | Overweight | 2025-10-14 |
| UBS | maintain | Buy | 2025-10-14 |
| Barclays | maintain | Overweight | 2025-10-14 |
| Keybanc | maintain | Overweight | 2025-09-30 |
| Mizuho | maintain | Outperform | 2025-09-12 |
| Argus Research | maintain | Buy | 2025-09-08 |
QUALCOMM Incorporated Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| B of A Securities | maintain | Buy | 2025-11-06 |
| Piper Sandler | maintain | Overweight | 2025-11-06 |
| Wells Fargo | maintain | Underweight | 2025-11-06 |
| UBS | maintain | Neutral | 2025-11-06 |
| Rosenblatt | maintain | Buy | 2025-11-06 |
| Mizuho | maintain | Outperform | 2025-11-06 |
| JP Morgan | maintain | Overweight | 2025-11-04 |
| Rosenblatt | maintain | Buy | 2025-10-28 |
| Citigroup | maintain | Neutral | 2025-10-28 |
| UBS | maintain | Neutral | 2025-10-27 |
Overall, both Broadcom and QUALCOMM are maintaining strong grades from various reputable firms, indicating a generally positive outlook despite some mixed sentiments, especially for QUALCOMM regarding its Underweight rating from Wells Fargo. Investors should weigh these grades carefully in their decision-making processes.
Target Prices
The target consensus for Broadcom Inc. and QUALCOMM Incorporated indicates positive expectations from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Broadcom Inc. (AVGO) | 460 | 295 | 404.5 |
| QUALCOMM Incorporated (QCOM) | 210 | 165 | 190 |
For Broadcom, the current price of 403.37 is slightly below the consensus target of 404.5, suggesting a modest upside potential. Meanwhile, QUALCOMM’s price of 168.09 is significantly below its target consensus of 190, highlighting a more pronounced growth opportunity according to analysts.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Broadcom Inc. (AVGO) and QUALCOMM Incorporated (QCOM) based on the most recent data.
| Criterion | Broadcom Inc. (AVGO) | QUALCOMM Incorporated (QCOM) |
|---|---|---|
| Diversification | High | Moderate |
| Profitability | Strong (Net Margin: 39.3%) | Moderate (Net Margin: 20.2%) |
| Innovation | High | High |
| Global presence | Strong | Strong |
| Market Share | 15% | 14% |
| Debt level | Moderate (Debt-to-Equity: 1.65) | Low (Debt-to-Equity: 0.70) |
Key takeaways: Broadcom showcases stronger profitability and diversification, while QUALCOMM maintains a lower debt level and similar innovation and global presence. Understanding these factors can guide investment decisions effectively.
Risk Analysis
The following table outlines the key risks associated with Broadcom Inc. (AVGO) and QUALCOMM Incorporated (QCOM).
| Metric | Broadcom Inc. (AVGO) | QUALCOMM Incorporated (QCOM) |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | Moderate | High |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | High | High |
Both companies face significant market and geopolitical risks, influenced by fluctuating demand in the semiconductor industry and ongoing global tensions. Notably, regulatory scrutiny is intensifying, particularly for QCOM, which could affect its licensing revenues.
Which one to choose?
In comparing Broadcom Inc. (AVGO) and QUALCOMM Incorporated (QCOM), both companies exhibit solid fundamentals but differ in growth potential and valuation metrics. AVGO shows a robust net profit margin of 11.43% with a higher price-to-earnings (P/E) ratio of 133.17, indicating a premium valuation. Conversely, QCOM boasts a lower P/E of 32.70 and a higher net profit margin of 12.51%, suggesting more attractive pricing relative to earnings. Analyst ratings favor QCOM with a B+ grade compared to AVGO’s B, reflecting higher growth expectations. Both stocks are on a bullish trend, with AVGO appreciating 284.03% over the past year, while QCOM saw a 22.94% increase.
Investors focused on growth may prefer QCOM, while those prioritizing established performance might lean toward AVGO. Risks include competitive pressures and market dependence, which could impact both companies’ future earnings.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Broadcom Inc. and QUALCOMM Incorporated to enhance your investment decisions:
