Moat Index
Companies· Semis

BroadcomAVGO

Moat score

Custom silicon for the hyperscalers plus VMware lock-in, run for cash.

MOATE3.1Deep
3.1 Deep
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DimensionMOATECommunity
Switching costsweight 15VMware customers have nowhere easy to go; custom ASIC programs are multi-year commitments.8
Network effectsweight 15Little. Advantage comes from contracts, not from users attracting users.3
Scale & cost advantageweight 12Scale in networking and custom silicon; efficient to the point of austerity.7
Brand & pricing powerweight 12VMware pricing shows how far Broadcom will push a captive customer.6
Cornered resourceweight 12Custom accelerator relationships with the largest clouds, a deep IP portfolio, and VMware.8
Distribution controlweight 12Sells to a concentrated set of very large customers.6
Disruption resilienceweight 12Exposed if hyperscalers bring silicon design fully in-house.6
Independenceweight 10TSMC dependence, customer concentration, and regulators watching the VMware playbook.5

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How strong is Broadcom's moat?

Question 1 of 8

Switching costs

Switching costs · weight 15

How painful — in money, time, risk, retraining — is it for a customer to leave?

5