Broadcom Inc. (AVGO) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that Broadcom Inc. surfaced in its latest filing.

• Net revenue for the two fiscal quarters ended May 3, 2026: sales to distributors accounted for 56%, top five end customers approximately 45%.May 3, 2026
• During the two fiscal quarters ended May 3, 2026, approximately 95% of wafers from contract manufacturers were produced by TSMC; more than three-quarters of manufacturing materials purchased from five suppliers, some single source.May 3, 2026
• As of May 3, 2026, aggregate indebtedness was $66,720 million.May 3, 2026
• VMware spin-off from Dell in November 2021; acquisition of VMware may cause spin-off to fail Section 355 tax-free qualification, with indemnification obligations to Dell for tax liabilities.November 2021
• The Creating Helpful Incentives to Produce Semiconductors for America Act could increase supply leading to excess inventory and lower average selling prices.
• The One Big Beautiful Bill Act may materially increase effective tax rate and cash tax costs.
• Regulatory investigations or inquiries from authorities in Korea, Japan, and the European Union into contracting and business practices.
• Adoption of global minimum tax provisions in a country where we have a tax incentive has materially increased our provision for income taxes; additional countries adopting could materially increase tax provision.
• U.S. tariffs and counter-tariffs, including semiconductor-related tariffs, have not had a material impact but could materially increase costs and disrupt supply chain.
• Customers proceeding with customer-owned tooling; entering into purchasing, leasing or other arrangements that could increase costs and complexity.