Broadcom

Revenue and cash flows have grown steadily and are backed by large contracts and support agreements. The software side provides subscription-like stability, and custom silicon for cloud providers is in secular demand. That said, the semiconductor business is somewhat cyclical, and recent growth was boosted by major M&A.

We estimate organic growth in the single digits absent new deals. Thus predictability is above average (due to recurring software fees) but not ironclad – Macroeconomic or technology cycles could cause swings.