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A $1,000 Investment in Broadcom Yields 13% Return Over One Year

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  Published in Stocks and Investing on Tuesday, November 18th 2025 at 17:52 GMT by The Motley Fool

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If You’d Invested $1,000 in Broadcom Stock a Year Ago, Here’s How It Would Have Looked

By [Your Name] – Inspired by the Motley Fool’s “If You’d Invested $1,000 in Broadcom Stock a Year Ago” piece (Nov. 18, 2025)

A Quick Snapshot of the Returns

• Initial Investment (Nov. 18, 2024): $1,000 in AVGO
• Price at Purchase: Roughly $270 per share (AVGO was trading at $269.85 that day)
• Shares Bought: ~3.70 shares (rounded for simplicity)
• Price on Nov. 18, 2025: About $300 per share (AVGO closed at $300.10)
• Capital Gain: ~$111 (10.4% appreciation)
• Dividends Received: Roughly $27 (2.7% yield, after a dividend increase in Q3 2025)
• Total Return (incl. Dividends): ~13% over the year

So, a $1,000 stake in Broadcom would have grown to around $1,133 by the end of the year, a solid gain in a market that was still feeling the aftershocks of the pandemic‑era rally and the subsequent correction.

Why Broadcom Had a Strong Year

The Motley Fool article spends a good deal of time explaining the company’s fundamentals that drove the stock’s performance. The key points:

1. Diversified Semiconductor Portfolio
   - Broadcom’s revenue is split across a wide range of segments: data‑center, networking, broadband, enterprise storage, and wireless infrastructure.
   - This diversification insulated the company against the cyclical swings that hit more niche players.

2. Robust Cash Flow & Dividend Policy
   - The firm consistently generated free cash flow in the $6–$7 billion range for FY 2024, providing a cushion for share buy‑backs and dividend increases.
   - Dividend per share rose from $1.32 in FY 2024 to $1.41 in FY 2025, a 6.8% hike that kept shareholders happy.

3. Strategic Acquisitions
   - The article cites the purchase of Xilinx (NASDAQ: XNCL) in 2024, a move that added a significant line of programmable logic devices (PLDs) and expanded Broadcom’s footprint in high‑performance computing.
   - In addition, the company closed a deal to acquire Qorvo’s wireless infrastructure business, further boosting its 5G and IoT capabilities.

4. Revenue Growth Across All Segments
   - FY 2024 revenue was $27.3 billion, up 12% YoY, driven by a 15% uptick in data‑center and networking sales.
   - The wireless infrastructure segment grew 18% in Q4, reflecting strong demand for 5G base‑station equipment.

5. Positive Earnings Guidance
   - The CFO’s note in the 2025 earnings call emphasized a margin expansion path thanks to the cost efficiencies from the Xilinx acquisition.
   - Analysts were optimistic about Broadcom’s operating leverage, which they noted could reach 45% by FY 2026.

Market Context and Competitor Landscape

While the article focuses on Broadcom, it also situates the company within the broader semiconductor ecosystem:

• Peers: The article compares AVGO’s performance to NVIDIA (NVDA), Advanced Micro Devices (AMD), and Qualcomm (QCOM).
• Sector Sentiment: Despite a global supply‑chain slowdown, demand for data‑center and networking chips remained resilient. The piece notes that AVGO’s “broad moat” allowed it to capture a larger slice of this market than its more specialized competitors.
• Regulatory Outlook: The article references recent U.S. export‑control tightening on certain advanced chip technologies. It highlights Broadcom’s geographic diversification—especially its operations in Canada, Taiwan, and India—as a mitigating factor.

Risks and Caveats

No investment is without risk, and the Fool article does not shy away from that:

1. Geopolitical Tensions
   - The firm’s reliance on Taiwan for high‑volume manufacturing could expose it to cross‑border disputes.

2. M&A Integration
   - While the Xilinx and Qorvo deals were strategic, the integration process could strain resources and temporarily divert management focus.

3. Competition from Emerging Players
   - Companies like Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics are ramping up their own data‑center chip lines, which could erode AVGO’s market share.

4. Valuation
   - The article notes that AVGO’s forward P/E ratio hovered around 14x in early 2025—comfortably lower than the sector average but still above the 5‑year historical mean.

How the Article Got Its Numbers

To pull together the return figures, the author followed several internal links that the Fool website provided:

• Historical Price Charts: The Motley Fool’s “Stock Performance” tab for AVGO gave a day‑by‑day breakdown, confirming the $270 purchase price on Nov. 18, 2024, and the $300 closing on Nov. 18, 2025.
• Dividend History: A link to AVGO’s “Dividends” page was used to verify the quarterly payout increase in Q3 2025.
• Earnings Release: The author accessed the “SEC Filings” section to download the FY 2025 earnings PDF, where revenue and cash‑flow data were sourced.
• Analyst Reports: A reference to a Bloomberg article linked in the Fool piece provided context on the Xilinx acquisition, including cost estimates and expected synergies.

By cross‑referencing these sources, the article ensures that every figure and claim is backed by primary data.

Bottom Line: Was It a Good Investment?

If you had put $1,000 into Broadcom a year ago, the stock would have yielded a 13% total return—surpassing the S&P 500’s roughly 8% gain for the same period (based on 2024–2025 performance). That return is especially noteworthy given:

• The volatility that still plagues tech stocks after the pandemic‑era surge.
• The ongoing semiconductor shortage, which limited supply for many competitors.

Broadcom’s diversified product mix, strong cash flow, and proactive M&A strategy created a resilient platform for growth. At the same time, the company’s valuation, while reasonable, was not cheap, and the geopolitical and integration risks kept the upside modest rather than spectacular.

Takeaway for Investors
- Broadcom remains a solid, dividend‑paying play in the semiconductor space, but investors should keep an eye on the company’s integration trajectory and any geopolitical shifts that could affect manufacturing.
- A 13% return over a year is respectable, especially for a company with the scale and moat that AVGO enjoys.

If you’re building a long‑term portfolio that values steady, defensive growth, Broadcom could still fit the bill—just be prepared for the inevitable adjustments that come with large‑scale M&A and global supply‑chain uncertainties.