Broadcom’s stock (NASDAQ: AVGO) surged nearly 600% in the past five years, driven by aggressive acquisitions and AI chip sales. Revenue grew at a 22% CAGR to $63.9 billion, with adjusted EBITDA rising at a 26% CAGR to $43.0 billion. The AI chip market expansion could make Broadcom one of the best stocks to buy in 2026.

Broadcom’s growth was fueled by acquisitions like VMware and AI chip sales to data centers. Its AI chip revenue surged 65% to $20 billion in fiscal 2025, accounting for 31% of its revenue. Analysts expect its revenue and adjusted EBITDA to grow at CAGRs of 38% and 36% from fiscal 2025 to fiscal 2028.

Broadcom aims to generate annualized AI chip revenues of $60 billion to $90 billion by 2027. It plans to acquire more companies and benefit from the expansion of mobile, automotive, and industrial sectors. Analysts see growth potential with an EV of $1.65 trillion and a valuation at 26 times this year’s adjusted EBITDA.

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