By Trefis Team
Publication Date: 2026-08-11 21:07:00
At $422, Broadcom (AVGO) is being priced to deliver 26% revenue growth annually for the next 5 years simply to defend today’s 68.4x multiple. That sits below the 32% the business is currently growing at, which is the unusual part. The multiple has already priced in a slowdown that has not yet appeared.
Broadcom is in a period of extreme AI-driven acceleration. Its business centers on supplying custom accelerators and networking silicon to a handful of core customers like Google.
That explosive growth comes from lower-margin custom silicon, creating a drag on profitability. Management is now explicitly guiding for consolidated gross margins to fall as this new product mix takes hold.
With that as the operational backdrop, the question is whether 26% revenue growth for 5 years is reasonable for AVGO. Before we walk through how the math gets to that number, here are AVGO’s current numbers as a reference point:
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| Sector | Information Technology |
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