Broadcom’s stock has surged 2,620% over the past decade, driven by its growing AI chip business. The global AI infrastructure market is expected to grow at a CAGR of 29.1% from 2025 to 2032. Many hyperscalers are using Broadcom’s custom AI accelerators to reduce dependency on Nvidia’s data center GPUs.

Broadcom’s AI chip revenue rose 65% to $20 billion in fiscal 2025, offsetting slower growth in other segments. Analysts expect revenue and EPS to grow at CAGRs of 38% and 47% from fiscal 2025 to fiscal 2028. The company aims to generate $60 billion to $90 billion in annualized AI chip revenues by the end of fiscal 2027.

Broadcom’s stock is reasonably valued, with multiple growth catalysts ahead. The company has been diversifying through acquisitions and is well-positioned to benefit from the growth of the AI infrastructure market. While its dividend yield may not be high, its low payout ratio leaves room for future increases.

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