Broadcom Stock Is Up 120% in the Past Year. This Analyst Thinks It Is One of the Highest-Quality Stocks to Buy for the Next Year Too.

Group 1 - Broadcom Inc. has experienced significant growth, with a 120% gain last year, despite a recent stock dip, maintaining its status as a high-quality stock benefiting from AI investments [1][4] - The company is viewed as a relatively safe investment in the AI sector due to its diversified product offerings, which include multiple product cycles beyond just AI [2] - Broadcom's market capitalization stands at $1.6 trillion, with stock prices fluctuating between $138 and $415 over the past year, showcasing its strong performance compared to the broader market [4] Group 2 - Valuation metrics indicate that Broadcom's price-to-earnings ratio is above 45x and its price-to-sales ratio is above 25x, suggesting that the stock is not cheap but justifiable due to its strong margins and customer loyalty [5] - The company has a history of dividend growth, recently increasing its payout by 10% to $0.65 per share, marking the fifteenth consecutive year of dividend increases [6]