Where Will Broadcom Stock Be by December 2026?

Core Viewpoint - Broadcom's stock experienced significant growth in 2025, increasing by 49.3%, and investors are encouraged to evaluate future investment opportunities as the company undergoes substantial changes in 2026 [1] Group 1: Business Focus and Growth - Broadcom is shifting its focus towards custom artificial intelligence (AI) accelerator chips, which are gaining popularity and may challenge Nvidia's dominance in AI computing by 2026 [2] - The company is transitioning from a diverse product line, including mainframe hardware, cybersecurity, and networking equipment, to concentrate on its AI accelerator chip business [4] - Broadcom is becoming a key partner for AI hyperscalers, designing application-specific integrated circuits (ASICs) that provide better performance at lower costs compared to traditional GPUs [5][6] Group 2: Financial Performance - In Q4 of fiscal year 2025, Broadcom's AI semiconductor revenue surged by 74% year over year to $6.5 billion, contributing to a total revenue of $18 billion for the quarter [7] - The company anticipates $8.2 billion in AI semiconductor revenue for Q1, representing a 100% year-over-year increase, with total projected revenue of $19.1 billion for the same quarter [7] - Custom AI accelerator revenue is expected to double in Q1, indicating strong growth potential for Broadcom's AI-focused business [8]