Broadcom’s AVGO is expanding its semiconductor portfolio with the Jericho4 Ethernet fabric router, connecting over one million custom AI accelerators in multiple data centers. Recent shipments of Tomahawk 6 and Tomahawk Ultra switches boost networking solutions. AVGO anticipates 25% YOY growth in semiconductor revenues for Q3 2025, driven by strong demand for XPUs.

However, AVGO faces tough competition from NVIDIA and AMD in the semiconductor market. NVIDIA’s Data Center business drives growth with increasing demand for AI infrastructure, while AMD strengthens its AI market footprint with the Instinct MI350 Series GPUs. AVGO’s shares have surged 26.8% YTD, trading at a premium with a forward P/E of 36.85X.

The Zacks Consensus Estimate for AVGO’s fiscal 2025 earnings stands at $6.63 per share, showing 36.1% growth from fiscal 2024. Broadcom carries a Zacks Rank #2 (Buy) and has outperformed the Zacks Computer and Technology sector. AVGO’s strong portfolio and semiconductor sales growth indicate positive prospects for the future.

Read more at Nasdaq: AVGO’s Strong Portfolio Drives Up Semiconductor Sales: What’s Ahead?