Broadcom Inc. (AVGO)vs Micron Technology, Inc. (MU)

Quick verdict

The widest gap on this page is not valuation but return on capital: Micron converted invested capital into a 62.1% ROIC in the twelve months to May 2026, against 30.0% at Broadcom in the twelve months to August 2026. Micron also earns the higher return on equity, 66.6% versus 44.3%, despite a far smaller debt load. Revenue is close — $90.3bn at Micron against $89.1bn at Broadcom — yet the market caps differ, $1,148.1bn versus $1,708.5bn at the 4 September 2026 close, and the multiples differ more: 23.0 times earnings for Micron, 45.7 times for Broadcom. Our scoring gives Micron the edge overall, 3.5 to 2.5, winning valuation, quality and balance sheet. Broadcom takes growth and shareholder income. Momentum is a tie. The central question is whether Micron's returns are cyclical peak or durable.

At-a-glance comparison

Business model and revenue mix

Both sit in US semiconductors and both are listed on Nasdaq, but they monetise very different assets. Broadcom designs chips for networking, broadband, storage and wireless, and layers on infrastructure software including VMware — a mix that produced $89.1bn of revenue and $42.8bn of reported operating profit in the twelve months to August 2026, with a November fiscal year end. Micron manufactures DRAM and NAND memory and storage for data centres, phones, PCs and vehicles, generating $90.3bn of revenue and $59.2bn of reported operating profit in the twelve months to May 2026, on a September fiscal year end. Memory is a commodity sold into a pricing cycle; Broadcom's software and custom silicon franchises are not. That distinction colours almost every comparison below, particularly margins and growth rates, which are measured at different points in their respective cycles.

Valuation

On every price-based measure available, Micron is the cheaper share at the 4 September 2026 close. It trades on 23.0 times trailing earnings against 45.7 times for Broadcom, 16.5 times EV/EBITDA against 33.9 times, 12.7 times sales against 19.2 times, and 11.4 times book against 17.1 times. Our valuation verdict goes to Micron on that basis. One figure refuses to co-operate with the story: free cash flow yield is effectively identical, 2.28% at Micron and 2.31% at Broadcom, because Micron's $26.2bn of trailing free cash flow lags its $50.5bn of net income while Broadcom converts more fully at $39.4bn. Broadcom's PEG of 2.11 pairs its multiple with growth; no comparable PEG is available for Micron, whose three-year EPS CAGR is negative.

Growth profile

Here the ranking reverses. Broadcom compounded revenue at 24.4% a year from fiscal 2022 to fiscal 2025 and 21.7% a year from fiscal 2020, with earnings per share up 21.6% annually over the three-year span — consistent growth across both windows, which is why the growth verdict goes to Broadcom. Micron's record is cyclical rather than compounding: revenue growth of 6.7% a year over three years and 11.8% over five, with three-year EPS growth of minus 0.7%. Its five-year EPS CAGR of 26.2% from fiscal 2020 looks strong, but that measurement starts in a weak memory year and flatters the trend; set against the flat three-year figure, it reads as cycle recovery rather than structural expansion. Broadcom's advantage is the steadiness of the series, not merely its level.

Profitability and quality

Margins favour Micron at this point in the cycle, and by a wide margin at the operating line: 65.6% against Broadcom's 48.1%, with gross margins of 72.6% versus 68.8% and net margins of 55.9% versus 42.9%. Both report an operating-income line, so these are as filed. The caveat is that memory margins swing hard with DRAM and NAND pricing, and a 65.6% operating margin sits far above what the segment sustains through a full cycle; Broadcom's 48.1% rests partly on software revenue that does not move that way. Cash conversion tells the other side. Broadcom turned $38.3bn of net income into $39.4bn of free cash flow in the twelve months to August 2026; Micron's $50.5bn of net income produced $26.2bn of free cash flow, reflecting heavy fabrication spending.

Balance-sheet risk

Financial structure is where the two businesses diverge most plainly. Micron carries $5.7bn of total debt against $25.0bn of cash, leaving net cash and a net debt to EBITDA figure of minus 0.28 times. Interest is covered 257.6 times over. Broadcom holds $59.4bn of debt against $24.0bn of cash, for net debt of 0.69 times EBITDA and interest cover of 13.7 times — comfortable in absolute terms, and a reminder that the VMware acquisition was financed. Liquidity also favours Micron, with a current ratio of 3.42 against 2.50. Balance-sheet figures are as at 28 May 2026 for Micron and 2 August 2026 for Broadcom. The verdict goes to Micron, and the gap matters more than usual for a company whose earnings are cyclical: net cash is what funds capacity through a downturn.

Price performance and shareholder returns

Shareholder distributions run the other way. Broadcom yields 0.71% on a trailing dividend of $2.54 per share, with a 31.6% payout ratio that leaves room on both sides, plus a 0.49% buyback yield. Micron pays $0.50 per share, a 0.05% yield on a 1.12% payout, with a 0.06% buyback yield — a token distribution alongside reinvestment in fabrication capacity. The income verdict is Broadcom's, and it is not close. On returns generated rather than returns paid out, the ordering flips: Micron's 62.1% ROIC and 66.6% ROE against Broadcom's 30.0% and 44.3%. Note that Micron achieves the higher ROE with a net cash balance sheet, so leverage is not doing the work — though peak memory pricing is. Broadcom's 44.3% ROE sits on $99.7bn of equity.

Which stock fits which investor

Investors screening on value have the clearer case for Micron: 23.0 times earnings and 16.5 times EV/EBITDA, backed by net cash and the higher ROIC. Those weighting growth consistency will prefer Broadcom, whose 24.4% three-year revenue CAGR and 21.6% EPS CAGR contrast with Micron's flat three-year earnings line. Income seekers have only one realistic option here — Broadcom's 0.71% yield and 31.6% payout against Micron's 0.05% — though neither is a yield-led holding. On quality our verdict favours Micron on margins and returns on capital, with the caveat that those figures reflect a strong memory price environment. Momentum scores as a tie. Overall the scoring lands 3.5 to 2.5 in Micron's favour, driven by valuation, balance sheet and capital returns rather than by growth.

• Value: MU
• Growth: AVGO
• Income: AVGO
• Quality: MU

Frequently asked questions

Which stock is cheaper, Broadcom or Micron?

Micron, on every available price-based measure at the 4 September 2026 close: 23.0 times trailing earnings versus 45.7 for Broadcom, 16.5 times EV/EBITDA versus 33.9, and 11.4 times book versus 17.1. The exception is free cash flow yield, where the two are effectively level at 2.28% and 2.31%.

Why is Micron's return on capital so much higher?

Micron earned a 62.1% ROIC and 66.6% ROE in the twelve months to May 2026, against 30.0% and 44.3% at Broadcom. Micron's 65.6% operating margin on $90.3bn of revenue is the main driver, and it achieves this with net cash rather than leverage — but memory margins are cyclical, so the figure reflects a strong pricing environment.

Which company has grown faster?

Broadcom. Revenue compounded at 24.4% a year from fiscal 2022 to fiscal 2025 and 21.7% from fiscal 2020, with three-year EPS growth of 21.6%. Micron's revenue grew 6.7% a year over three years, and its three-year EPS CAGR is minus 0.7%.

Which has the stronger balance sheet?

Micron. As at 28 May 2026 it held $25.0bn of cash against $5.7bn of debt, giving net cash and interest cover of 257.6 times. Broadcom, as at 2 August 2026, carried $59.4bn of debt against $24.0bn of cash, or 0.69 times EBITDA net, with 13.7 times cover.

Which pays the better dividend?

Broadcom, by a wide margin. It yields 0.71% on $2.54 per share with a 31.6% payout ratio, plus a 0.49% buyback yield. Micron pays $0.50 per share for a 0.05% yield on a 1.12% payout.

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