AVGO · 10-Q · 2026Q2 · Full report

Distribution Channels

Broadcom Inc. · 2026-06-09 · Importance 84 · Surprise 74

Direct sales to a single semiconductor solutions customer, identified as a distributor, accounted for 42% of Broadcom's net revenue for both the fiscal quarter and two fiscal quarters ended May 3, 2026 (compared with 29% in the prior-year periods), indicating heavy reliance on at least one distribution channel. This channel concentration amplifies exposure to single-customer ordering patterns and timing, which can cause significant quarter-to-quarter revenue volatility. The prominence of a distributor relationship underscores the role of indirect channel demand in the semiconductor segment. Management continues to highlight significant customer concentration through distribution for its semiconductor solutions business.