Up 130% In a Year, How High Can Broadcom Stock Go?

Core Insights - Broadcom's stock has increased by approximately 130% over the past year, driven by strong demand for AI technology and high-performance computing [1][4] - The company specializes in application-specific integrated circuits (ASICs) and is well-positioned to benefit from rising investments in AI infrastructure [1][4] - Broadcom's infrastructure software business provides steady, recurring revenue, complementing the rapid growth of its AI chip segment [2][5] Financial Performance - In Q3 of fiscal 2025, Broadcom reported $16 billion in revenue, marking a 22% increase year-over-year, primarily fueled by demand for AI-focused semiconductors [6] - Semiconductor revenue reached $9.2 billion, a 26% year-over-year increase, with AI chip sales surging 63% to $5.2 billion [7] Strategic Partnerships - Broadcom has established significant partnerships with major tech companies, including a recent agreement with OpenAI to develop custom AI accelerators, enhancing its role as a key partner for hyperscalers [3][4] Market Outlook - As companies increase capital spending on AI data centers and next-generation computing, Broadcom is expected to continue delivering strong growth [4][5] - Despite the positive long-term growth prospects, there are concerns regarding the stock's valuation after a substantial rally [4]