---
title: "Is Broadcom Stock Halal?"
canonical: https://www.halalwallet.ca/is-it-halal/broadcom-stock
publisher: HalalWallet
license: CC BY 4.0
verdict: halal
verdict_label: Halal
entity_type: stock
ticker: AVGO
exchange: NASDAQ
last_reviewed: 2026-06-15
data_as_of: 2026-05-03
standards_disagree: true
authorities_with_position: 5
authority_agreement: unanimous
---
# Is Broadcom Stock Halal?

**Authority consensus:** All 5 halal screening authorities with a published position rate Broadcom Inc. halal.

**Verdict: Halal** (Generally permissible)

Broadcom Inc. (AVGO) passes our AAOIFI-based screen. Its core business is permissible, and (data as of 2026-05-03) interest-bearing debt is 3.6% of market cap and cash plus interest-bearing securities 1.1% — both inside the 30% AAOIFI thresholds. It is independently held by Shariah-screened ETFs SPUS and HLAL, confirming it passes professional screens. Ratios move with the share price, so check the data-as-of date; any incidental interest income should be purified.

> HalalWallet is not a Shariah authority and does not issue religious rulings. We compile the most complete public record of what Shariah scholars, screening authorities, and mainstream standards say — reproduced from primary sources with dates and citations — and let you decide.

## How we read the evidence

Broadcom combines a large semiconductor business - networking and custom AI chips, wireless components used in smartphones, broadband and storage silicon - with an infrastructure software arm built through the CA Technologies, Symantec enterprise-security and VMware acquisitions. Both segments sell technology products to businesses, so the business-activity screen raises no significant flags: there is no advertising platform, no lending arm, no entertainment content in Broadcom's disclosed revenue.

The Shariah question for Broadcom has historically been quantitative rather than qualitative. The company is a serial acquirer that finances deals with conventional debt, and the VMware purchase added substantial borrowings. Screens that measure debt against market capitalization (AAOIFI, S&P, Dow Jones, FTSE variants) have continued to pass Broadcom because its market value has grown enormously, keeping the ratio under the typical one-third threshold; investors should understand that a sharp fall in the share price, with debt unchanged, mechanically pushes that ratio up. This is the classic case where a stock's compliance is sensitive to market moves rather than to what the company sells.

As of June 11, 2026, the documented third-party picture is uniformly positive: Broadcom is held by both SPUS (4.91% weight) and HLAL (5.15% weight), and both Zoya and Musaffa publicly rate it compliant/halal under AAOIFI-based methodologies. Incidental interest income on corporate cash would call for standard purification of a small portion of returns. The main monitoring item for a Muslim investor is the debt-to-market-cap ratio at each quarterly screening, given the acquisition-driven balance sheet.

## Business activity screen

Result: Pass

Broadcom is a designer of semiconductors and infrastructure software. Its 10-K reports two segments: semiconductor solutions (networking, broadband, wireless, storage and industrial chips, including custom AI accelerators for hyperscalers) and infrastructure software (mainframe and enterprise software from the CA, Symantec enterprise-security and VMware acquisitions).

Broadcom's revenue lines - chips and enterprise infrastructure software - do not include advertising platforms, lending, insurance or entertainment content; no revenue line in its filings is identified as directly impermissible. The Shariah-relevant feature is on the financial side: Broadcom carries substantial conventional debt taken on to fund large acquisitions (most recently VMware), which matters for ratio screens rather than the business screen. It also earns interest income on cash (incidental).

## Financial ratio screen (AAOIFI)

Data as of: 2026-05-03

| Screen | Value | Limit | Result |
|---|---|---|---|
| Interest-bearing debt / market cap | 3.6% | < 30% | Pass |
| Cash + interest-bearing securities / market cap | 1.1% | < 30% | Pass |
| Impermissible income / total revenue | 0.5% | < 5% | Pass |

Screening basis: AAOIFI Shariah Standard No. 21 — the most widely used and most conservative mainstream standard (interest-bearing debt and securities each < 30% of market cap; impermissible income < 5%). Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets. Full methodology: https://www.halalwallet.ca/halal-stock-screening-methodology

## How it screens across Shariah standards

These standards disagree on this company — it passes some and fails others, which is why different apps can show different answers. The headline label follows AAOIFI (the strictest mainstream standard).

| Standard | Debt | Cash & interest securities | Limit / basis | Result |
|---|---|---|---|---|
| AAOIFI (our standard) | 3.6% | 1.1% | < 30% of market cap | Pass |
| Dow Jones Islamic / S&P Shariah threshold | 3.6% | 1.1% | < 33% of market cap | Pass |
| MSCI Islamic / FTSE Yasaar basis | 36.2% | 11.0% | < 33.33% of total assets | Fail |

HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-05-03) — not the providers' licensed index determinations, which can differ. Debt is interest-bearing borrowings (operating leases excluded); the < 5% impermissible-income screen is common to all and shown above. Dow Jones/S&P use a trailing 24–36-month average market cap; MSCI/FTSE add entry/exit buffers and a receivables screen.

## Scholars' and screeners' positions

- **SP Funds S&P 500 Sharia ETF (SPUS)**: Held in SPUS as of 2026-06-11 — passed the S&P Shariah screen applied by the fund. ([source](https://www.sp-funds.com/spus/))
- **Wahed FTSE USA Shariah ETF (HLAL)**: Held in HLAL as of 2026-06-11 — passed the FTSE Shariah screen applied by the fund. ([source](https://funds.wahedinvest.com/))
- **Zoya**: Zoya's public stock page rates AVGO Shariah-compliant under its AAOIFI-based screen (checked 2026-06-11). ([source](https://zoya.finance/stocks/avgo))
- **Musaffa**: Musaffa's public stock page classifies AVGO as HALAL under its AAOIFI-based methodology, as of March 2026. ([source](https://musaffa.com/stock/AVGO/))

## Purification

Even Shariah-compliant companies typically earn a small amount of incidental interest on corporate cash. The standard practice is to purify: donate the proportion of your dividends (and, per some scholars, capital gains) attributable to impermissible income. Our purification calculator automates the math from your holding and the company's disclosed figures.

## Sources

- AVGO latest quarterly filing (balance sheet 2026-05-03) (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&company=Broadcom%20Inc.&type=10-Q)
- AAOIFI Shariah Standards (https://aaoifi.com)
- Broadcom 10-K filings - SEC EDGAR (CIK 0001730168) (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001730168&type=10-K)
- SPUS holdings (sp-funds.com, table dated 06/11/2026) (https://www.sp-funds.com/spus/)
- HLAL fund page with official Holdings link (funds.wahedinvest.com) (https://funds.wahedinvest.com/)
- Zoya public compliance page for AVGO (https://zoya.finance/stocks/avgo)
- Musaffa public compliance page for AVGO (https://musaffa.com/stock/AVGO/)

## Frequently asked questions

### Is Broadcom Inc. (AVGO) stock halal?

Yes, under our AAOIFI-based methodology Broadcom Inc. passes the business-activity and financial-ratio screens as shown on this page (data as of 2026-05-03). Check the dated ratio table before investing; ratios move with the share price.

### Does Broadcom Inc. pass the AAOIFI financial ratio screen?

As of 2026-05-03: interest-bearing debt is 3.6% of market cap (limit < 30%); cash plus interest-bearing securities is 1.1% (limit < 30%). The impermissible-income line is verified against the annual filing where noted on this page.

### Is Broadcom Inc. held in halal ETFs like SPUS or HLAL?

Yes — as of our last check, Broadcom Inc. is held by SPUS and HLAL. ETF inclusion confirms it passed those funds' Shariah screens at the holdings date cited in the sources below.

### Do I need to purify dividends from Broadcom Inc.?

Yes, in most cases. Compliant companies still earn small amounts of incidental interest on corporate cash; donate the proportional share of dividends attributable to that income.

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---

Cite as: According to HalalWallet (https://www.halalwallet.ca, retrieved 2026-07-30).

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