AVGO vs TXN Stock Comparison: AI Score, Valuation, Performance and Upside
Broadcom and Texas Instruments are both semiconductor dividend payers, but Broadcom's growth is increasingly driven by AI networking and custom silicon demand, while Texas Instruments remains anchored to the more cyclical, but historically stable, analog and embedded chip markets serving industrial and automotive customers.
Broadcom offers dividend income plus direct exposure to AI infrastructure growth, while Texas Instruments offers a more traditional, cycle-driven analog chip compounder with a longer dividend growth track record. Consider whether you want AI-driven growth alongside your dividend or a more classic industrial semiconductor cycle play.
AVGO holds the edge across 4 of 5 key metrics in this comparison. TXN has delivered stronger 1-year price return (+66.77% vs -5.47%), though AVGO has the better forward P/E setup (18.67x vs 24.30x for TXN). AVGO leads on both revenue growth (85.50%) and operating margin (54.31%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies meaningfully more upside for AVGO (+46.92%) than for TXN (+25.55%).
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- Want dividend income combined with direct exposure to AI networking and custom ASIC growth
- Value diversified revenue across semiconductors and enterprise software
- Believe AI infrastructure spending will keep growing faster than traditional chip end markets
- Are comfortable with customer concentration risk among a few large hyperscalers
- Prefer a diversified analog and embedded chip business with thousands of customers across many industries
- Value a multi-decade track record of consistent dividend growth
- Believe an eventual industrial and automotive chip cycle recovery will drive renewed growth
- Are comfortable with a more cyclical, less AI-driven growth profile in exchange for lower concentration risk
| Metric | AVGO | TXN |
|---|---|---|
| AI scorei | 75.9 | 56.8 |
| AI ranki | #17 | #223 |
| Latest closei | $321.68 | $284.69 |
| 1M returni | -9.38% | +4.43% |
| 3M returni | -15.77% | +1.83% |
| 6M returni | -23.91% | +2.72% |
| 1Y returni | -5.47% | +66.77% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | AVGO | TXN |
|---|---|---|
| 1Y ago | $9.34K (-6.6%) started 2025-10-23 | $16.53K (+65.3%) started 2025-10-23 |
| 5Y ago | $72.07K (+620.7%) started 2021-10-25 | $17.77K (+77.7%) started 2021-10-25 |
| 10Y ago | $312.55K (+3025.5%) started 2016-10-24 | $66.2K (+562.0%) started 2016-10-24 |
Hypothetical — past performance does not guarantee future results.
| Metric | AVGO | TXN |
|---|---|---|
| Market capi | $1.73T | $236.2B |
| Trailing P/Ei | 46.05 | 39.37 |
| Forward P/Ei | 18.67 | 24.30 |
| Price/Salesi | N/A | 10.89 |
| EV/Revenuei | 19.79 | 12.51 |
| Analyst targeti | $531.85 | $324.71 |
| Target upsidei | +46.92% | +25.55% |
| Metric | AVGO | TXN |
|---|---|---|
| Revenue growthi | 85.50% | 22.80% |
| Earnings growthi | 215.30% | 51.80% |
| EPS growthi | +215.30% | +51.80% |
| FCF margini | +34.34% | +18.22% |
| Operating margini | 54.31% | 42.58% |
| Profit margini | 42.94% | 31.11% |
| ROIC proxyi | 44.25% | 35.18% |
| Return on equityi | 44.25% | 35.18% |
| Dividend yieldi | 0.72% | 2.20% |
| Payout ratioi | 32.44% | 85.54% |
| Dividend growth streaki | No increase yet | No increase yet |
| Betai | 1.46 | 1.32 |
| Debt/equityi | 59.60 | 78.04 |
| Current ratioi | 2.50 | 4.86 |
| Quick ratioi | 2.15 | 3.25 |
Over the past year, AVGO and TXN have moved weakly in the same direction (correlation of 0.31), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | AVGO | TXN |
|---|---|---|---|
| 1Y | Growthi | -6.57% | +65.33% |
| CAGRi | -6.58% | +65.45% | |
| Volatilityi | 45.81% | 42.19% | |
| Sharpe ratioi | -0.02 | 1.30 | |
| Sortino ratioi | -0.02 | 2.27 | |
| Max drawdowni | 33.20% | 23.76% | |
| Current drawdowni | 33.20% | 14.32% | |
| Avg drawdowni | 16.19% | 8.72% | |
| Ulcer Indexi | 18.50% | 11.18% | |
| Max daily dropi | 12.59% | 8.46% | |
| Max wkly dropi | 22.35% | 14.08% | |
| 5Y | Growthi | +565.44% | +58.56% |
| CAGRi | +46.15% | +9.67% | |
| Volatilityi | 44.57% | 33.76% | |
| Sharpe ratioi | 0.97 | 0.31 | |
| Sortino ratioi | 1.52 | 0.46 | |
| Max drawdowni | 41.15% | 33.41% | |
| Current drawdowni | 33.20% | 14.32% | |
| Avg drawdowni | 11.09% | 11.63% | |
| Ulcer Indexi | 14.37% | 13.43% | |
| Max daily dropi | 17.40% | 13.34% | |
| Max wkly dropi | 22.35% | 17.97% | |
| 10Y | Growthi | +2246.92% | +405.16% |
| CAGRi | +37.12% | +17.59% | |
| Volatilityi | 40.01% | 31.84% | |
| Sharpe ratioi | 0.88 | 0.53 | |
| Sortino ratioi | 1.31 | 0.77 | |
| Max drawdowni | 48.30% | 33.41% | |
| Current drawdowni | 33.20% | 14.32% | |
| Avg drawdowni | 8.88% | 8.69% | |
| Ulcer Indexi | 12.22% | 11.14% | |
| Max daily dropi | 19.91% | 13.34% | |
| Max wkly dropi | 31.75% | 17.97% |
| Category | AVGO | TXN |
|---|---|---|
| Company | Broadcom Inc. | Texas Instruments Incorporated |
| Sector | Technology | Technology |
| Industry | Semiconductors | Semiconductors |
| Core business | Designs custom AI ASICs, networking chips, and broadband/wireless semiconductors, alongside an infrastructure software business (VMware), serving hyperscalers and enterprise customers. | Manufactures analog and embedded processing chips used across industrial, automotive, personal electronics, and communications equipment, with a long history of in-house manufacturing investment. |
| Investor focus | Custom AI ASIC and networking chip growth, VMware software margin contribution, and dividend growth track record. | Analog chip cycle recovery, industrial and automotive end-market demand, capital expenditure on manufacturing capacity, and dividend growth. |
- Leading position in custom AI ASIC design and AI-cluster networking chips, riding the AI infrastructure buildout
- Diversified revenue across semiconductors and enterprise software smooths cyclicality relative to pure-play chipmakers
- Long history of dividend growth funded by strong free cash flow generation
- Broad, diversified analog and embedded chip portfolio serving thousands of customers across many industries
- In-house manufacturing (300mm wafer fabs) gives long-term cost and supply advantages over fabless competitors
- Multi-decade track record of consistent dividend growth supported by strong free cash flow
- AI-related revenue concentrated among a small number of large hyperscaler customers
- Non-AI semiconductor segments (broadband, wireless) still exposed to typical chip cyclicality
- Integration execution and growth sustainability of the VMware software business
- Analog chip demand is cyclical and closely tied to industrial and automotive capital spending cycles
- Heavy capital expenditure on new fab capacity pressures near-term free cash flow
- Slower growth profile than AI-exposed semiconductor peers during AI infrastructure upcycles
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