Broadcom’s stock (NASDAQ: AVGO) has experienced a significant surge, rising 2,620% over the past decade, driven by aggressive growth in its AI chip business. In fiscal 2025, Broadcom reported a 65% increase in AI chip revenue, reaching $20 billion, which comprised 31% of its total revenue. Analysts anticipate that from fiscal 2025 to 2028, the company’s revenue and earnings per share (EPS) will grow at compound annual growth rates (CAGRs) of 38% and 47%, respectively.
The global AI infrastructure market is projected to expand at a CAGR of 29.1% from 2025 to 2032, prompting major companies like Google and Meta Platforms to install Broadcom’s custom AI accelerators. By the end of fiscal 2027, Broadcom expects to generate between $60 billion and $90 billion in annualized AI chip revenues, mainly from three hyperscale customers.
