Broadcom's stock doubled in 2024, but faces competition and uncertainty in 2025.

From Nasdaq: 2025-02-01 12:29:00

In 2024, Broadcom’s stock doubled, driven by its AI hardware business. However, a competitor, DeepSeek’s R1 model, caused a 17% drop in Broadcom’s stock. Despite this, AI hardware investments are expected to continue. The stock is trading at 32 times forward earnings, but concerns remain about Broadcom’s aggressive pricing strategy with VMware clients. Analysts predict 19% revenue growth in fiscal 2025, but uncertainty around AI investments and VMware performance suggests caution. The Motley Fool does not recommend investing in Broadcom at this time, citing better opportunities in other stocks.



Read more at Nasdaq: Broadcom Stock Doubled in 2024. Can This Dominant AI Stock Double Again in 2025?