This Schwab Dividend ETF Shines Bright, with Defense and Energy as Key Sectors.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 03 2026
0mins
Should l Buy AVGO?
Source: Barron's
- Investor Expectations: Investors in the Schwab U.S. Dividend Equity ETF are not anticipating significant growth this year.
- Current Performance: Despite low expectations, the ETF is experiencing notable performance this year.
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Analyst Views on AVGO
Wall Street analysts forecast AVGO stock price to rise
30 Analyst Rating
29 Buy
1 Hold
0 Sell
Strong Buy
Current: 345.750
Low
370.00
Averages
457.75
High
525.00
Current: 345.750
Low
370.00
Averages
457.75
High
525.00
About AVGO
Broadcom Inc. is a global technology firm that designs, develops, and supplies a range of semiconductors, enterprise software and security solutions. The Company operates through two segments: semiconductor solutions and infrastructure software. Its semiconductor solutions segment includes all of its product lines and intellectual property (IP) licensing. It provides a variety of radio frequency semiconductor devices, wireless connectivity solutions, custom touch controllers, and inductive charging solutions for mobile applications. Its infrastructure software segment includes its private and hybrid cloud, application development and delivery, software-defined edge, application networking and security, mainframe, distributed and cybersecurity solutions, and its FC SAN business. It provides a portfolio of software solutions that enable customers to plan, develop, automate, manage and secure applications across mainframe, distributed, mobile and cloud platforms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Vanguard High Dividend Yield ETF Investment Advantages
- Low Expense Ratio: The Vanguard High Dividend Yield ETF features an extremely low expense ratio of just 0.04%, significantly reducing investment costs over the long term, which enhances net returns for investors planning to hold for years or even decades.
- High Diversification: This ETF holds 562 stocks, with its largest position in Broadcom accounting for 7% of the entire portfolio, effectively minimizing risk exposure to any single stock and ensuring income stability for investors.
- Broad Sector Distribution: The ETF's holdings include multiple sectors with over 10% exposure, such as financials, healthcare, and industrials, allowing investors to benefit from long-term economic growth while mitigating risks associated with market volatility.
- Long-Term Investment Potential: Although the ETF's total returns over the past decade are around 200%, trailing the S&P 500's 300%, its focus on blue-chip dividend stocks may provide greater resilience during market crashes or corrections, making it suitable for investors seeking stable long-term income.
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Broadcom's Growth Potential in AI Infrastructure Market
- Surging AI Infrastructure Investment: The five largest hyperscalers plan to invest $700 billion in AI data centers in 2023, positioning Broadcom as a key supplier of custom AI chips, which is expected to significantly enhance its market share.
- Rising Demand for Custom Chips: Broadcom leads in ASIC technology, providing customers with high-performance, energy-efficient custom solutions, and as the inference market expands, this technological advantage will help clients reduce long-term costs.
- Notable Success Stories: The TPU chips developed in collaboration with Alphabet are widely used in its internal workloads and cloud computing division, with Alphabet starting to sell these chips externally, highlighted by Anthropic's $21 billion TPU order, showcasing Broadcom's strong market influence.
- Rapid Growth in Networking Business: Broadcom's data center networking revenue grew by 60% in Q1 2026, with acceleration expected in Q2, and as AI clusters expand, Broadcom's leadership in networking will further solidify, driving explosive growth in overall company performance.
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Broadcom's AI Chip Market Set for Explosive Growth
- Surging Market Demand: The five largest hyperscalers are projected to invest $700 billion in AI infrastructure in 2023, positioning Broadcom as a key supplier of custom AI chips, which is expected to significantly boost its revenue and market share.
- ASIC Technology Advantage: Broadcom leads in application-specific integrated circuit (ASIC) technology, which is optimized for specific tasks and energy-efficient, enhancing its competitiveness in the AI sector as the inference market grows, helping clients reduce long-term costs.
- Notable Success Stories: The Tensor Processing Units (TPUs) developed in partnership with Alphabet are widely used in its cloud computing operations, with Anthropic placing a $21 billion order for TPUs, demonstrating strong demand and customer trust in Broadcom's AI chip offerings.
- Rapid Growth in Networking Business: Broadcom's data center networking revenue grew by 60% in Q1 2026, with expectations for continued acceleration in Q2, and as AI clusters expand, Broadcom's leadership in networking will further solidify, driving overall business growth.
See More
Oracle Reports Strong Earnings, Shares Rise 8%
- Earnings Beat: Oracle raised its fiscal 2027 revenue forecast by $1 billion to $90 billion, exceeding analyst expectations of $86.6 billion, indicating strong market demand and growth potential for the company.
- Significant Cloud Growth: The company reported $8.9 billion in cloud revenue, a 44% year-over-year increase, with cloud infrastructure revenue soaring 84%, demonstrating Oracle's competitive edge in AI infrastructure and attracting major clients like Air France-KLM.
- Cash Flow Challenges: Despite strong earnings, Oracle reported negative free cash flow of $13.18 billion over the past 12 months, reflecting the high debt burden from its AI buildout, which may impact future financial flexibility.
- Surge in AI Contracts: Oracle's remaining performance obligations quadrupled year-over-year to $553 billion, primarily driven by large-scale AI contracts, indicating robust demand in the AI market and future growth potential, despite facing funding pressures.
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Comparing Growth Prospects of Palantir and Broadcom
- Palantir Revenue Surge: Palantir's revenue tripled from $1.5 billion in 2021 to $4.5 billion by 2025, reflecting robust demand in both government and commercial sectors, particularly driven by new contracts.
- Profitability Boost: In 2023, Palantir became profitable with net income soaring nearly eightfold to $1.6 billion over two years, indicating the success of its business model and increased market acceptance.
- Broadcom Market Edge: Broadcom achieved a 24% CAGR in revenue for fiscal 2025, with 58% of its revenue from semiconductor solutions and 42% from infrastructure software, showcasing its competitive strength in a diversified market.
- AI Chip Sales Growth: Broadcom's AI chip sales soared 65% to $20 billion in fiscal 2025, accounting for 31% of total revenue, with projections of $60-$90 billion in annualized revenue by fiscal 2027, highlighting its strong potential in the AI market.
See More
Market Outlook Analysis for Palantir and Broadcom
- Palantir's Growth Potential: Palantir's revenue is projected to grow from $1.5 billion in 2021 to $4.5 billion by 2025, with a CAGR of 49%, primarily driven by new government contracts and expansion in its commercial business, indicating strong performance in the AI market.
- Profitability Improvement: In 2023, Palantir became profitable with net income soaring nearly eightfold to $1.6 billion over two years, demonstrating the effectiveness of its business model and robust market demand.
- Broadcom's Market Positioning: Broadcom's revenue and adjusted EBITDA grew at CAGRs of 24% and 27% from 2021 to 2025, respectively, with its unique combination of semiconductor and infrastructure software providing a competitive edge in the market.
- AI Chip Sales Growth: Broadcom's AI chip sales surged 65% to $20 billion in 2025, accounting for 31% of its total revenue, with expectations to generate $60-$90 billion in annualized AI chip revenue by 2028, highlighting its strong growth potential in the AI sector.
See More
Vanguard High Dividend Yield ETF Investment Advantages
- Low Expense Ratio: The Vanguard High Dividend Yield ETF features an extremely low expense ratio of just 0.04%, significantly reducing investment costs over the long term, which enhances net returns for investors planning to hold for years or even decades.
- High Diversification: This ETF holds 562 stocks, with its largest position in Broadcom accounting for 7% of the entire portfolio, effectively minimizing risk exposure to any single stock and ensuring income stability for investors.
- Broad Sector Distribution: The ETF's holdings include multiple sectors with over 10% exposure, such as financials, healthcare, and industrials, allowing investors to benefit from long-term economic growth while mitigating risks associated with market volatility.
- Long-Term Investment Potential: Although the ETF's total returns over the past decade are around 200%, trailing the S&P 500's 300%, its focus on blue-chip dividend stocks may provide greater resilience during market crashes or corrections, making it suitable for investors seeking stable long-term income.
See More
Broadcom's Growth Potential in AI Infrastructure Market
- Surging AI Infrastructure Investment: The five largest hyperscalers plan to invest $700 billion in AI data centers in 2023, positioning Broadcom as a key supplier of custom AI chips, which is expected to significantly enhance its market share.
- Rising Demand for Custom Chips: Broadcom leads in ASIC technology, providing customers with high-performance, energy-efficient custom solutions, and as the inference market expands, this technological advantage will help clients reduce long-term costs.
- Notable Success Stories: The TPU chips developed in collaboration with Alphabet are widely used in its internal workloads and cloud computing division, with Alphabet starting to sell these chips externally, highlighted by Anthropic's $21 billion TPU order, showcasing Broadcom's strong market influence.
- Rapid Growth in Networking Business: Broadcom's data center networking revenue grew by 60% in Q1 2026, with acceleration expected in Q2, and as AI clusters expand, Broadcom's leadership in networking will further solidify, driving explosive growth in overall company performance.
See More
Broadcom's AI Chip Market Set for Explosive Growth
- Surging Market Demand: The five largest hyperscalers are projected to invest $700 billion in AI infrastructure in 2023, positioning Broadcom as a key supplier of custom AI chips, which is expected to significantly boost its revenue and market share.
- ASIC Technology Advantage: Broadcom leads in application-specific integrated circuit (ASIC) technology, which is optimized for specific tasks and energy-efficient, enhancing its competitiveness in the AI sector as the inference market grows, helping clients reduce long-term costs.
- Notable Success Stories: The Tensor Processing Units (TPUs) developed in partnership with Alphabet are widely used in its cloud computing operations, with Anthropic placing a $21 billion order for TPUs, demonstrating strong demand and customer trust in Broadcom's AI chip offerings.
- Rapid Growth in Networking Business: Broadcom's data center networking revenue grew by 60% in Q1 2026, with expectations for continued acceleration in Q2, and as AI clusters expand, Broadcom's leadership in networking will further solidify, driving overall business growth.
See More
Oracle Reports Strong Earnings, Shares Rise 8%
- Earnings Beat: Oracle raised its fiscal 2027 revenue forecast by $1 billion to $90 billion, exceeding analyst expectations of $86.6 billion, indicating strong market demand and growth potential for the company.
- Significant Cloud Growth: The company reported $8.9 billion in cloud revenue, a 44% year-over-year increase, with cloud infrastructure revenue soaring 84%, demonstrating Oracle's competitive edge in AI infrastructure and attracting major clients like Air France-KLM.
- Cash Flow Challenges: Despite strong earnings, Oracle reported negative free cash flow of $13.18 billion over the past 12 months, reflecting the high debt burden from its AI buildout, which may impact future financial flexibility.
- Surge in AI Contracts: Oracle's remaining performance obligations quadrupled year-over-year to $553 billion, primarily driven by large-scale AI contracts, indicating robust demand in the AI market and future growth potential, despite facing funding pressures.
See More
Comparing Growth Prospects of Palantir and Broadcom
- Palantir Revenue Surge: Palantir's revenue tripled from $1.5 billion in 2021 to $4.5 billion by 2025, reflecting robust demand in both government and commercial sectors, particularly driven by new contracts.
- Profitability Boost: In 2023, Palantir became profitable with net income soaring nearly eightfold to $1.6 billion over two years, indicating the success of its business model and increased market acceptance.
- Broadcom Market Edge: Broadcom achieved a 24% CAGR in revenue for fiscal 2025, with 58% of its revenue from semiconductor solutions and 42% from infrastructure software, showcasing its competitive strength in a diversified market.
- AI Chip Sales Growth: Broadcom's AI chip sales soared 65% to $20 billion in fiscal 2025, accounting for 31% of total revenue, with projections of $60-$90 billion in annualized revenue by fiscal 2027, highlighting its strong potential in the AI market.
See More
Market Outlook Analysis for Palantir and Broadcom
- Palantir's Growth Potential: Palantir's revenue is projected to grow from $1.5 billion in 2021 to $4.5 billion by 2025, with a CAGR of 49%, primarily driven by new government contracts and expansion in its commercial business, indicating strong performance in the AI market.
- Profitability Improvement: In 2023, Palantir became profitable with net income soaring nearly eightfold to $1.6 billion over two years, demonstrating the effectiveness of its business model and robust market demand.
- Broadcom's Market Positioning: Broadcom's revenue and adjusted EBITDA grew at CAGRs of 24% and 27% from 2021 to 2025, respectively, with its unique combination of semiconductor and infrastructure software providing a competitive edge in the market.
- AI Chip Sales Growth: Broadcom's AI chip sales surged 65% to $20 billion in 2025, accounting for 31% of its total revenue, with expectations to generate $60-$90 billion in annualized AI chip revenue by 2028, highlighting its strong growth potential in the AI sector.
See More
