Broadcom stock predicted to potentially double in next three years due to revenue growth.

From Nasdaq: 2025-04-27 18:25:00

Broadcom (NASDAQ: AVGO) is a top stock pick with strong upside potential despite a recent 20% market dip in 2025. The chipmaker has surged over 45% in the past year, and analysts believe its stock could double or more in the next three years.

Broadcom’s revenue growth is being driven by its infrastructure software segment, which saw a 47% increase to $6.7 billion last quarter. The company forecasts a 23% growth in this segment for fiscal Q2, especially as enterprise customers turn to hybrid cloud environments for AI workloads.

In addition to its software business, Broadcom’s networking and ASICs businesses play a critical role in AI infrastructure. The company’s ASICs business, in particular, presents a significant opportunity as more companies seek custom AI chips for better performance and reduced power consumption compared to GPUs.

With a potential $40 billion in additional revenue from custom AI chips and continued growth in VMware, Broadcom could surpass $100 billion in revenue by fiscal 2027. Analysts predict that the stock could more than double in the next three years, driven by custom AI chip and networking revenue growth.

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Read more at Nasdaq: Prediction: Broadcom Stock Could Surge by 100% in the Next 3 Years