Is AVGO (Broadcom Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, AVGO is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (4.12% vs ≤33% threshold), interest income ratio (0.54% vs ≤5% threshold), and cash & securities ratio (1.02% vs ≤33% threshold).

Broadcom Inc. is a global technology leader that designs and supplies a broad range of semiconductor and infrastructure software solutions. Their products serve critical markets including data center networking, home connectivity, broadband, and wireless communications, with chips found in everything from enterprise servers to the latest smartphones. Headquartered in San Jose, the company operates across diverse segments like Wired Infrastructure and Enterprise Storage, making it a foundational player in the digital economy. For Muslim investors using HalalStocks.co.uk, Broadcom is currently classified as Halal, having passed all four AAOIFI screening standards. This 'Pass' status confirms that the company's primary business activities are permissible and that its financial health aligns with Islamic principles regarding interest and debt. Specifically, the company avoids involvement in prohibited industries like alcohol, gambling, or conventional banking, ensuring your investment supports ethical technological development. Financially, Broad com demonstrates strong adherence to shariah thresholds, particularly regarding leverage. With a debt-to-market cap ratio of only 4 .1% and cash-and-securities sitting at just 1.0% of market cap, the company is far below the maximum 33% limit set for these categories. Furthermore, the interest income generated from its cash deposits accounts for only 0.54% of revenue, well within the 5% tolerance level, making purification of dividends straightforward and minimal for investors. While Broadcom is currently compliant, investors should continue to monitor the company's acquisition strategy, as the tech giant frequently acquires other firms which can alter debt levels. Large-scale acquisitions often involve taking on significant financing or inheriting the target company's debt, which could impact future shariah ratios. Regular screening is recommended to ensure the stock remains within the acceptable thresholds as the company evolves. Broadcom Inc. operates in the Technology sector under the Semiconductors industry and is headquartered in Palo Alto, CA, US. The company is led by CEO Hock E. Tan and employs approximately 37,000 people.

AVGO was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. AVGO passed 4 of these 4 screens.

Although AVGO passes all shariah screens, it does earn $347.0M in interest income (0.54% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.54 to purify the income.

AVGO was last screened on 2026-02-25. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.