Broadcom Inc. AVGO

Competitive advantage analysis · technology

Corporate Default
Overall moat score
76/100
Strong

About Broadcom Inc.

Broadcom Inc. designs, develops, and supplies various semiconductor devices and infrastructure software solutions internationally. The company operates in two segments: Semiconductor Solutions and Infrastructure Software. The company offers networking connectivity, such as custom silicon solutions, ethernet switching & routing, ethernet NIC controllers, physical layer devices, and fiber optic components; wireless device connectivity, including RF semiconductor devices, connectivity solutions, custom touch … Full AVGO analysis →

Competitive advantage assessment

Key strengths

  • Margins Consistently Above Peers Gross margin at 67.8% (top 18%) and operating margin at 39.9% (top 8%) indicate strong pricing power.
  • Margins Stable Across Cycles Operating margin volatility is low (stability score 0.74), demonstrating pricing resilience across cycles.

Key risks

  • Liquidity Concerns Liquidity is concerning (score 0.20), raising questions about short-term obligations.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Strong
82

Where AVGO ranks in Semiconductors

Broadcom Inc. ranks #7 of 66 scored companies in Semiconductors by moat score — the top 11%. The widest moat in the group is NVE Corporation (NVEC) at 86/100.

Moat scores for companies ranked near AVGO in Semiconductors
# Company Moat score Rating
3 Cirrus Logic, Inc. CRUS 82/100 Strong
4 Rambus, Inc. RMBS 80/100 Strong
5 Micron Technology, Inc. MU 78/100 Strong
6 NVIDIA Corporation NVDA 78/100 Strong
7 Broadcom Inc. AVGO 76/100 Strong
8 Arm Holdings plc ARM 75/100 Strong
9 Monolithic Power Systems, Inc. MPWR 75/100 Strong
10 Credo Technology Group Holding CRDO 73/100 Moderate
11 QUALCOMM Incorporated QCOM 72/100 Moderate

See every General Corporate company ranked by moat score →

How AVGO scores on the Corporate Default defenses

Pricing Power

Score 82 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 88 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 88 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 75 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 46 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 80 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding AVGO's moat

What is Broadcom Inc.'s moat score?

Broadcom Inc. (AVGO) scores 76 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as strong. It ranks #7 of 66 scored companies in Semiconductors, the top 11%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 65 companies in Semiconductors. Its strongest defense is Cost Advantage (88/100) and its weakest is Resilience (46/100).

How does Broadcom Inc. compare with other Semiconductors companies?

Broadcom Inc. ranks #7 of 66 scored companies in Semiconductors by moat score. The widest moat in Semiconductors is NVE Corporation (NVEC) at 86/100. The companies ranked closest are NVIDIA Corporation (NVDA) at 78 just above it and Arm Holdings plc (ARM) at 75 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 65 companies in Semiconductors. The defenses are then weighted to produce the overall score out of 100.

Why is Broadcom Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Broadcom Inc.?

The Corporate Default template measures 6 defenses, and AVGO scores: Pricing Power (82), Cost Advantage (88), Customer Stickiness (88), Capital Efficiency (75), Resilience (46), Scale & Market Position (80). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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