Broadcom’s AI Growth Outpaces Nvidia
In 2025, Broadcom’s stock (NASDAQ: AVGO) rose 49%, outperforming Nvidia’s (NASDAQ: NVDA) 39% increase, reflecting strong growth in its artificial intelligence (AI) semiconductor business. In Q4, Broadcom reported record revenue of $18 billion, a 28% increase year-over-year, with AI semiconductor revenue reaching $6.5 billion, up 74% year-over-year. The company anticipates this trend to continue, forecasting AI semiconductor growth exceeding 100% to $8.2 billion in the first quarter of 2026.
Broadcom is capitalizing on demand for application-specific integrated circuits (ASICs), which provide energy-efficient alternatives to traditional GPUs, becoming more prevalent in data centers. This shift is supported by predictions from industry leaders, including Cathie Wood of Ark Invest, who expect investment in AI infrastructure to surpass $1.4 trillion by 2030. Currently, Broadcom’s stock trades at 31 times forward earnings, lower than Nvidia’s multiple of 39, indicating potential for further gains in the competitive AI chip market.
