Broadcom’s customizable AI chips, known as ASICs or “XPUs,” are in high demand due to their energy-saving benefits for AI processing. With new customer additions expected to boost stock performance in 2026, Broadcom has become a key player in the semiconductor and AI industries, driving a 49% gain in shares in 2025.

As companies seek to reduce power consumption in AI operations, Broadcom’s ASICs offer a solution, leading to a 24% revenue growth to $64 billion in 2025. With AI revenue surging by 65% to $20 billion, the company anticipates continued growth with a projected 28% revenue increase in the first quarter of 2026.

Looking ahead, Broadcom’s CEO predicts a significant opportunity in the AI market, estimating a revenue growth of 52% in 2026 and 37% in 2027. Analysts expect a 33% potential upside in stock price, with Broadcom well-positioned to benefit from the long-term growth potential of AI, trading at an attractive valuation of less than 25 times next year’s expected earnings.

Read more at Nasdaq: Why Broadcom Stock Spiked 49% Higher in 2025, and Why There’s Likely More to Come in 2026