Broadcom's (NASDAQ: AVGO) stock rose about 3.8% over the past 12 months. During that same period, the S&P 500 declined 9.3%, and the PHLX Semiconductor Sector index lost 13.2% of its value. Broadcom outperformed the market and many of its industry peers for four reasons.
Texas Instruments (NASDAQ: TXN) and Broadcom (NASDAQ: AVGO) both outperformed the market in 2022 as many other semiconductor stocks withered. Over the past 12 months, the S&P 500 declined 8% and the Philadelphia Semiconductor Index fell 11% -- yet TI's stock only dipped 1% as Broadcom's stock advanced 6%. TI and Broadcom held steady for similar reasons: They were well diversified across a wide range of sectors; had limited exposure to the post-pandemic slowdown of the PC market, which hurt many other chipmakers; and they generated plenty of cash for big buybacks and dividends.
In the latest trading session, Broadcom Inc. (AVGO) closed at $581.45, marking a -1.61% move from the previous day.