Broadcom (AVGO) Surged on Exceptional Demand for AI Chips

Core Insights - Columbia Threadneedle Investments reported strong market performance in Q3 2025, with a composite return of 12.06%, slightly below the S&P Global 1200 Information Technology Index's return of 12.82, driven by earnings growth, enthusiasm for AI, and easing trade tensions [1] Company Performance - Broadcom Inc. (NASDAQ:AVGO) demonstrated significant stock performance with a one-month return of 10.18% and a remarkable 119.30% increase over the past 52 weeks, closing at $369.63 per share with a market capitalization of $1.746 trillion on October 31, 2025 [2] - In Q3 2025, Broadcom Inc. reported record revenue of $16 billion, reflecting a 22% year-over-year increase, and is recognized as a strong buy due to robust cash flow and dividend growth [4] AI Market Impact - Broadcom's growth is significantly attributed to the demand for AI accelerator chips and networking hardware, with AI semiconductor chips now constituting the majority of its revenue, and the company is on track for 11 consecutive quarters of AI revenue growth [3] - A notable $10 billion custom AI chip order was announced during the quarter, with delivery set to begin in 2026, and the company reported a backlog exceeding $100 billion, primarily driven by AI chip orders [3]