AVGO vs DELL: Which Is the Better Buy in 2026?
Last updated October 2026
Short answer
AVGO is the larger of the two ($1.57T market cap): the incumbent the market prices for continued execution (16.95x forward earnings, beta 1.48). DELL is the smaller challenger ($287.20B), priced similarly on forward earnings (15.09x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.
AVGO vs DELL: the tie-breaker metrics
Same yardstick, side by side (as of October 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | AVGO | DELL | What it tells you |
|---|---|---|---|
| Market cap | $1.57T | $287.20B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 16.95 | 15.09 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 43.31 | 26.26 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 1.48 | 1.44 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 19% of range | 70% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
Before you buy: how AVGO and DELL affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. AVGO and DELL share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined AVGO and DELL exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Broadcom (AVGO) do?
Broadcom is one of the largest semiconductor companies in the world, plus a major enterprise software business after acquiring VMware in 2023. The semiconductor business has two main pieces. Networking and wireless silicon (Ethernet switches, optical components, custom ASICs for hyperscalers) is critical to AI data centers. Custom silicon (XPUs) for hyperscaler AI accelerators is a major growth driver: Broadcom designs custom AI chips for customers like Google (TPU), Meta (MTIA), and others.
What does Dell Technologies (DELL) do?
Dell Technologies sells computing hardware to enterprises and consumers. The business has two main segments. Infrastructure Solutions Group (ISG) sells servers (including AI-optimized PowerEdge servers), storage (PowerStore, PowerMax), and data center networking; ISG has become a major AI infrastructure beneficiary because Dell is one of the largest assemblers of NVIDIA GPU-based AI servers for hyperscaler, neocloud and enterprise customers. Client Solutions Group (CSG) sells laptops, desktops, monitors, and peripherals to consumer and commercial markets.
AVGO vs DELL: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- AVGO drivers: Custom AI accelerators (XPUs) for hyperscalers; AI networking silicon.
- DELL drivers: AI server assembly as the headline growth driver; Storage modernization.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Customer concentration in custom AI silicon (top customers are Google, Meta, and reportedly OpenAI): a pause or redesign at one hyperscaler would show up quickly in revenue. For DELL, aI server margins are structurally thinner than other Dell business, so headline revenue growth doesn't translate to proportional earnings growth.
AVGO or DELL: which should you pick?
Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick AVGO if you believe its drivers more; DELL if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the AVGO and DELL guides.
AVGO vs DELL: the full fundamentals
AVGO. Broadcom's valuation reflects dominant networking semiconductor positions, fast-growing custom AI silicon revenue, and high-margin enterprise software from VMware. At about 44x trailing GAAP earnings but only about 17x forward estimates, the multiple assumes the steep growth analysts project (consensus EPS of about $19.40 for fiscal 2027) actually arrives. Analysts rate the stock a strong buy with an average target near $528, well above the mid-October price of about $335.
DELL. Dell's valuation has rerated with its earnings: the forward P/E of about 15x is similar to early 2026, but it now applies to estimates that have roughly tripled, and the market cap has gone from about $95 billion to about $292 billion. The multiple compresses if AI server margins disappoint, if memory-driven pricing fades, or if PC end markets weaken. The next quarterly report is expected around November 27, 2026, with consensus EPS of about $6.56 on ~$49.2 billion of revenue.
Headline figures (approximate, October 2026): AVGO shows revenue (ttm) ~$89.1 billion (combined semis and software); latest quarter up ~85% YoY, operating margin ~54% (gross margin ~76%), net income (ttm) ~$38.3 billion, eps ~$7.59 GAAP (TTM); latest quarter adjusted $3.32 vs ~$3.24 consensus; DELL shows revenue (ttm) ~$151 billion (quarter ended July 2026 ~$47.0B, up ~58% YoY), net income (ttm) ~$11.4 billion, eps Latest quarter adjusted $7.04 vs $4.92 estimate; trailing ~$17.20; FY2027 guidance ~$25.50 adjusted, margins (ttm) Gross ~20%, operating ~12%, net ~7.5%.
The bottom line: AVGO vs DELL
AVGO and DELL are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined AVGO and DELL exposure against your real portfolio. It is not an investment adviser.
Wondering how AVGO or DELL fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Broadcom with AI
Connect the broker you already use and ask Walnut's AI how AVGO fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between AVGO and DELL?
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Broadcom is one of the largest semiconductor companies in the world, plus a major enterprise software business after acquiring VMware in 2023. Dell Technologies sells computing hardware to enterprises and consumers. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is AVGO or DELL the better stock?
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Neither is universally better. AVGO is the larger incumbent; DELL is the smaller challenger and looks cheaper on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, AVGO or DELL?
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On forward P/E (as of October 2026), AVGO trades at 16.95x and DELL at 15.09x, so DELL is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both AVGO and DELL?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of AVGO vs DELL?
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AVGO: Customer concentration in custom AI silicon (top customers are Google, Meta, and reportedly OpenAI): a pause or redesign at one hyperscaler would show up quickly in revenue. Hyperscaler AI spending depends on financing, and in October 2026 Hock Tan himself said capital may be the biggest constraint on AI expansion; higher bond yields and doubts about AI returns drove a semiconductor sell-off that left AVGO about 32% below its 52-week high. Forward estimates assume fiscal 2027 revenue growth of roughly 66%, so any shortfall against those expectations could hit the stock. VMware integration creates customer pushback and potential churn in the enterprise software business, and the company carries about $59 billion of debt. DELL: AI server margins are structurally thinner than other Dell business, so headline revenue growth doesn't translate to proportional earnings growth. Barclays, in downgrading Dell to equal weight in October 2026 with a $574 target, argued that much of the recent revenue growth reflects higher memory prices passed through to customers rather than enterprise AI adoption, and that infrastructure revenue could weaken if memory prices stabilize or fall. Demand depends on AI buyers continuing to fund large data center buildouts, and rising interest rates and doubts about AI customers' revenues make debt-financed projects harder: Dell fell about 19% in the month to October 16, 2026 alongside HPE and Supermicro. The stock is far more volatile than in early 2026, with a 52-week range of roughly $110 to $596. PC market cyclicality and competition from Apple and Lenovo remain, and Dell carries about $35 billion of debt.
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Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell AVGO or DELL; figures are approximate and dated (as of October 2026). Verify current data before investing.