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How to buy Broadcom stock (AVGO)—5 steps to invest

Fact Checked: Amy Tokic

🗓️

Updated: January 13, 2025

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Broadcom has been a leading semiconductor giant for multiple decades, and it’s gaining more market share due to its AI chips. The company doesn’t only serve the semiconductor industry. It’s also invested in various software products, including the recent acquisition of VMware for $61 billion. Broadcom’s market cap recently exceeded $1 trillion, putting it among the top 10 most valuable publicly traded companies. 

This guide will show you how to buy Broadcom stock and help you gauge if it makes sense for your portfolio. 

How to buy Broadcom stock

Buying Broadcom stock gives investors exposure to the semiconductor and software industries. You can follow these steps to acquire Broadcom shares.

  1. 1.

    Open a brokerage account: Investors have to create a brokerage account with firms before they can buy Broadcom stock. These accounts let you buy and sell shares in publicly traded companies. You also get access to other investments like ETFs, mutual funds and bonds.

  2. 2.

    Create an order ticket: An order ticket allows you to specify which company you want to invest in and how many shares you want to purchase. Broadcom’s ticker symbol is AVGO. Market orders go through right away, while limit orders only go through if the stock reaches the limit order’s designated price point.

  3. 3.

    Specify Broadcom stock: While every brokerage firm will recognize AVGO as Broadcom’s ticker, some will display the company’s stock if you type “Broadcom.” When you enter Broadcom’s ticker, the order ticket will display the stock’s current price. You can refresh the order ticket to see Broadcom's price change in real-time.

  4. 4.

    Decide on the number of shares: Investors should consider how many shares of Broadcom they want to own before committing to the investment. If you put in a number, the order ticket will automatically generate how much money you have to invest to buy the specified amount of shares. You can also buy fractional shares through many brokerage firms if you don’t have enough available cash to buy one share of Broadcom.

  5. 5.

    Execute the order: After reviewing your order ticket, the final step is to execute the order. Market orders go through right away at the current price, while limit orders don’t go through until the stock reaches the limit price. You can cancel a limit order at any time before it goes through. 

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About Broadcom Inc.

Broadcom was founded in 1961 and quickly became a semiconductor giant. The company was acquired by Avago Technologies in 2016. The Broadcom name remained intact, but the acquisition explains why Broadcom trades under the AVGO ticker — that’s been the ticker symbol of Avago Technologies since its IPO in 2009. Broadcom’s $67 billion acquisition of VMware was its biggest acquisition in its history. The deal also represents one of the largest transactions in the entire tech industry.

Is Broadcom a good stock to buy?

Broadcom has consistently outperformed the S&P 500 over several years. The stock has more than doubled over the past year, which is more than the S&P 500 has gained over the past five years. The company also has an annualized 51.2% return1 over the past five years. Its annualized return is 38.1% over the past decade.

Broadcom has outperformed most tech giants over the past year, five years and 10 years. It outperformed Apple, Microsoft, Amazon and Alphabet during all of those time frames. Broadcom also offers a 0.98% yield and a double-digit dividend growth rate, which is higher than most tech giants. 

Broadcom is poised to benefit from the ongoing artificial intelligence tailwinds. Many tech companies are throwing billions of dollars into the industry and have plans to ramp up their spending. Broadcom’s AI chips are some of the top choices available, and those chips have helped Broadcom generate record revenue and profits.

Pros and cons of buying Broadcom stock

Pros

Pros

  • Broadcom is a leader in the artificial intelligence industry, which is poised to grow considerably over the next few years

  • The chipmaker has outperformed most tech stocks while having a higher yield than the other tech giants

  • The VMware acquisition has strengthened the company’s software sales, which can translate into higher profit margins

Cons

Cons

  • Broadcom faces stiff competition from Nvidia and other chipmakers

  • Government scrutiny can limit the company’s ability to make another high-profile acquisition

  • The stock has gained a lot over the past few years, so some investors may believe that they have missed the boat

FAQs

  • Is Broadcom a buy, sell or hold?

    +

    Broadcom gives investors an opportunity to profit from the rising demand for artificial intelligence chips and software. The semiconductor giant has delivered solid long-term returns and may be a good buy for growth investors. Risk-averse investors may view it as a hold. However, it’s important to assess your long-term financial goals and risk tolerance before committing to any stock.

  • Is Broadcom a Chinese company?

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    No, Broadcom is not a Chinese company. The semiconductor giant is based in Palo Alto, California.

  • What is the target price for Broadcom stock?

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    Broadcom is rated as a Strong Buy2 among 26 analysts with a projected $233.33 price target. The highest price target is $265 per share.

Marc Guberti Freelance Contributor

Marc Guberti is a certified personal finance counselor and a freelance writer who resides in Scarsdale, New York. His work has been featured in US News & World Report, Newsweek, InvestorPlace, and other publications.

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