Should I Buy Broadcom Stock in 2025? Insights for NZ Investors

What is Broadcom?

How much is the Broadcom stock?

The price of Broadcom stock is rising this week. Currently trading at $241.97 USD, Broadcom shares have gained 1.06% over the past 24 hours but show a -4.96% change for the week. The company’s market capitalisation stands at $1.138 trillion USD, with an average 3-month volume of 29.64 million shares. Broadcom’s P/E Ratio is elevated at 111.7, the dividend yield is 0.99%, and its stock beta is measured between 1.06 and 1.54, reflecting moderate volatility. Investors should note that while the stock shows growth potential, its high valuation and active price swings suggest periods of pronounced movement, which NZ investors may want to consider in their strategies.

Our complete analysis of the Broadcom stock

After a rigorous review of Broadcom’s most recent financial results and stock performance over the past three years, our proprietary algorithms—combining financial metrics, technical signals, sector data, and competitor benchmarks—provide fresh insight into this tech sector heavyweight. The synthesis of these perspectives highlights inflection points both in valuation and momentum. So, why might Broadcom stock once again become a strategic entry point into the global semiconductor and infrastructure software sectors in 2025?

Recent Performance and Market Context

Broadcom (NASDAQ: AVGO) has delivered a remarkable run over the past year, appreciating by a staggering 74% and rising nearly 50% in just the past six months to its closing price of $241.97 USD as of 30 May 2025. Although the past week saw a modest pullback of -4.96%, the overall trend is decisively positive, underpinned by robust fundamentals and strategic execution.

Notably, the completion and integration of the $61–69 billion VMware acquisition in late 2023 has firmly positioned Broadcom as a leader in both semiconductors and infrastructure software. This merger has not only diversified revenue streams—software now constitutes a significant $21.5 billion portion of annual turnover—but also enabled Broadcom to capture emerging opportunities in the private cloud and enterprise AI segments.

The sector backdrop remains highly favourable. Global demand for AI-enabling chips, data centre networking, and mission-critical software continues to surge. As US technology indices reach new historical highs, investor sentiment in New Zealand and worldwide has increasingly favoured large-cap, cash-generative tech names with clear exposure to the structural drivers of AI and digital transformation.

Technical Analysis

From a technical perspective, Broadcom sits tantalisingly close to its all-time highs, registering a 52-week range between $128.50 and $251.88. The current trading band of $237.40 to $246.07 demonstrates both liquidity and resilience amid broader market volatility.

• Relative Strength Index (RSI): While readings fluctuate across sources (32.15 to 83.4), the current positioning suggests a consolidation phase after an overbought surge, now transitioning towards an attractive risk-reward range for new entries.
• Moving Averages: AVGO remains well above its 50-day and 200-day moving averages, confirming strong short- and long-term upward momentum.
• MACD (Moving Average Convergence Divergence): The MACD histogram has shown multiple bullish crossovers in recent months, reinforcing the case for an ongoing positive trend.
• Support and Resistance: The $229.87–$231.62 region is a strong technical support, historically attracting buying flows. The main resistance lies just below the $252 zone—a breakout above this level could catalyse the next leg up.

This technical structure points towards a market that, after digesting recent gains, is primed for a fresh upward phase—especially appealing for investors seeking entry before the next catalyst.

Fundamental Analysis

Revenue and Profitability

Broadcom’s latest results are emblematic of genuine operational strength:

• Q4 2024 revenue: $14.054 billion (+51% YoY)
• Full year 2024 revenue: $51.6 billion (+44% YoY)
• Adjusted annual EBITDA: $31.9 billion (+37% YoY)
• Q4 Net income: $4.32 billion
• Q4 EPS: $1.42, beating consensus by $0.04

These figures underscore not only the depth of Broadcom’s core business, but also its accelerating profit engine—particularly impressive given ongoing macro uncertainty and sectoral competition.

Valuation Metrics

Broadcom currently trades at a P/E ratio of 111–117, reflecting high growth expectations. While this multiple is clearly elevated, it is important to weigh it against projected earnings expansion in both semiconductor and infrastructure software verticals. The market consensus target price stands at ~$245, with some top-tier analysts (Susquehanna: $280, Mizuho: $300, Redburn Atlantic: $301) setting even loftier horizons, particularly if AI and cloud adoption remain robust through 2025 and beyond.

Structural Strengths

• Dominance in complex semiconductors: Broadcom is a critical supplier of high-value chips for AI, networking, and data centres—segments with secular, multi-year growth.
• Acquisition-driven innovation: The VMware integration transforms Broadcom into a full-stack player, able to capture enterprise IT spending from silicon to software.
• Robust free cash flow: With $21.9 billion in free cash flow generated last year, Broadcom has ample resources for capital allocation, research, buybacks, and dividends.
• Brand and ecosystem: The Broadcom name is embedded deep within the tech infrastructure of hyperscalers, telecoms, and cloud providers, delivering durable pricing power and client stickiness.

Volume and Liquidity

• With an average daily volume of 20.77 million shares (recent: 29.64 million over 65 days), the stock is heavily traded, drawing keen institutional and retail participation from around the globe.
• A public float of 4.61 billion shares ensures tight bid-ask spreads and dynamic price discovery.
• In April 2025, Broadcom authorized a $10 billion share buyback, a move signalling potent internal confidence and underpinning the stock’s valuation floor.

This high-liquidity environment enables NZ-based investors to establish or unwind positions with efficiency, while supporting healthy price action around technical inflection points.

Catalysts and Positive Outlook

Key Growth Catalysts

• AI Semiconductor Leadership: Broadcom’s rapidly growing AI chip revenues (+77%) have made it a central player in the AI infrastructure boom. Q2 2025 projections see AI-related sales reaching $4.4 billion (+44% YoY).
• VMware Integration: The seamless absorption of VMware unlocks significant revenue synergies, boosting the group’s software revenues and fortifying its cloud and hybrid infrastructure offerings.
• Technology Innovation: Breakthroughs in co-packaged optics (CPO 200G/lane) and next-generation networking position Broadcom at the forefront of high-speed, energy-efficient data transfer—vital for hyperscale cloud and telecom clients.
• Cash Flow Deployment: Strong cash generation is earmarked for both buybacks and targeted M&A, with capital discipline guided by a management team renowned for its operational precision.
• ESG and Sustainability: Recent sustainability disclosures and ESG initiatives have improved the group’s risk profile and appeal to institutional mandates.

Favourable Sectoral Backdrop

• Tech mega-trends—AI, edge computing, 5G networks, cloud migration, and cyber resilience—are all supportive of double-digit revenue growth across Broadcom’s portfolio.
• Regulatory, macro, and consumption forecasts remain robust for both US and APAC tech players, creating a tailwind for NZ investors seeking global growth exposure.

Investment Strategies

The confluence of strong fundamentals, technical support, and visible catalysts presents several compelling strategies across all investment horizons:

• Short-Term: For active traders, the recent pullback towards support offers a potential re-entry point, as the stock seems primed for another test of resistance near the $252 all-time high. Tight stops and disciplined risk controls may be warranted given volatility.
• Medium-Term: Those looking for 3–12 month appreciation may consider accumulation around current levels, as the Q2 earnings cycle and AI/VMware updates could provide upside momentum fuel.
• Long-Term: Investors with a 2–5 year horizon benefit most from Broadcom’s compound growth engine, exposure to non-cyclical sectors, and ongoing innovation—making it a strong candidate for core tech portfolios in NZ and beyond, particularly when diversification out of the NZX is a key priority.

Ideal positioning can be secured by allocating on retests of technical lows ($230–$232) or ahead of major corporate releases likely to drive sentiment and sector flows.

Is it the Right Time to Buy Broadcom?

Upon synthesising all available data, Broadcom stands as one of the rare large-cap technology stocks that combine exceptional operational momentum, sectoral leadership, and ample liquidity—all supported by a pipeline of growth catalysts rooted in AI, cloud, and software innovation. While valuation is elevated, this is justified by the company’s outsized earnings growth, powerful market position, and successful execution of transformative acquisitions.

For New Zealand investors seeking resilient, global technology exposure with a strong history of value creation, Broadcom seems to represent an excellent opportunity. The stock’s fundamentals, technical momentum, and substantial free cash flow generation all reinforce the argument for renewed interest at current levels. With upward revisions from top analysts and a robust set of corporate catalysts ahead, Broadcom may well be entering a new bullish phase.

Careful positioning around current technical supports or ahead of pivotal announcements appears particularly attractive for those seeking to capitalise on one of 2025’s most promising technology opportunities. As market momentum and innovation converge, Broadcom’s unique profile should not be overlooked by investors aiming to capture the benefits of the fast-evolving tech landscape.

How to buy Broadcom stock in New Zealand?

Buying Broadcom (AVGO) stock online is both straightforward and secure for investors in New Zealand, thanks to access to regulated brokers. Whether you want to directly own shares (spot buying) or take advantage of price movements with flexibility (via Contracts for Difference, or CFDs), both methods are available through most reputable platforms. Spot buying makes you a partial owner of Broadcom, while CFDs allow you to trade on price changes with leverage. Each approach has its own advantages and fees—read on for a breakdown, and find a comparison of leading NZ brokers further down the page.

Spot Buying

A cash or spot purchase means buying Broadcom shares outright and becoming a direct shareholder. This method is suitable if you want to hold your investment long-term and possibly receive dividends. Kiwi investors can easily buy US-listed shares like Broadcom through online brokers that provide access to US markets. Typically, you’ll pay a fixed brokerage commission per order—usually around NZ$5 to NZ$15, depending on the platform.

Example

Suppose the Broadcom share price is US$241.97 (approx. NZ$394 at a 1 USD = 1.63 NZD exchange rate). With a NZ$1,000 stake, subtracting an NZ$5 brokerage fee, you can invest NZ$995. This allows you to buy about 2 Broadcom shares (2 × NZ$394 = NZ$788), with the remaining balance staying as cash in your broker account.

✔️ Gain Scenario:

If the Broadcom share price rises by 10%, your two shares would now be worth about NZ$867. A NZ$79 gross gain represents a 10% return on your initial investment.

Trading via CFD

CFD (Contract for Difference) trading allows you to speculate on Broadcom’s price movements without actually owning the underlying shares. CFDs are popular for short-term strategies and offer access to leverage—but also come with higher risk. Fees include:

• Spread: The difference between buy and sell prices set by the broker.
• Overnight financing: A daily fee if your leveraged position is held past market close.

Example

You open a CFD position on Broadcom with NZ$1,000 capital and use 5x leverage, giving you effective market exposure of NZ$5,000. If Broadcom’s share price rises 8%, your position gains 8% × 5 = 40%. This results in NZ$400 gross gain on your original NZ$1,000 (excluding any fees like spread and overnight interest).

Final Advice

Before taking action, carefully compare brokers’ fees, account conditions, and the available tools—costs can significantly impact your returns. Your choice between spot buying and CFDs should reflect your investment horizon, risk appetite, and market outlook. For a detailed comparison tailored to New Zealand investors, be sure to explore the broker reviews found further down this page. Your investment journey starts with the right platform and approach—choose what matches your goals!

Our 7 tips for buying Broadcom stock

The latest news about Broadcom

Broadcom’s Q4 2024 results outperformed expectations, marking 51% revenue growth year-on-year. The company reported quarterly revenue of $14.054 billion and an annual figure of $51.6 billion, showcasing a substantial top-line expansion that is particularly notable given the global demand for semiconductors and infrastructure software. Net profit for the quarter reached $4.32 billion and earnings per share came in at $1.42, surpassing analyst consensus. For New Zealand-based institutional investors, these strong results confirm Broadcom’s status as a global leader and signal reliability for NZ pension and managed funds seeking exposure to the technology sector through international equities.

The integration of VMware has materially strengthened Broadcom’s infrastructure software portfolio, delivering $21.5 billion in annual revenue for 2024. This strategic acquisition, completed late last year, has reinforced Broadcom's position in critical data centre and cloud markets that are directly relevant to New Zealand’s accelerating digital transformation and enterprise IT needs. VMware's global ecosystem, which includes NZ-based channel partners and cloud operators, stands to benefit from Broadcom’s focus on product innovation and operational optimisation, potentially offering enhanced service capabilities to local organisations.

AI-driven semiconductor revenues are surging, with a 77% growth rate and further gains anticipated in Q2 2025. Broadcom’s AI semiconductor business is expected to generate $4.4 billion in the next quarter, supporting ambitious AI projects globally and meeting the requirements of hyperscale data centres. As New Zealand businesses and research institutions increase their adoption of AI and high-performance computing, Broadcom’s continued investment and dominant market share in AI-enabling hardware are likely to support growing demand across the region.

Analyst sentiment remains highly favourable, with new price targets ranging from $245 to $301 and a consensus “buy” rating. Leading brokerages, including Susquehanna and Mizuho, highlight Broadcom as a top pick for 2025—emphasising the company’s strategic leadership, robust free cash flow, and the successful VMware integration. For New Zealand investors and financial advisors, this positive sentiment is significant as it supports the inclusion of AVGO within diversified growth portfolios, particularly given its broad exposure to global technology trends and ongoing share buyback initiatives.

Broadcom products and partnerships maintain strong visibility in the Australasian market, underpinning resilience to regional supply chain and IT needs. Broadcom’s technologies underpin critical telecommunications, cloud, and enterprise applications used in New Zealand, with local distributors and partners enabling consistent access to next-generation solutions. The company's ability to deliver advanced semiconductors and infrastructure software aligns with the digital priorities of New Zealand’s public and private sectors, offering stability and innovation amid broader industry volatility.

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P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.