Broadcom (NASDAQ: AVGO) has achieved significant market capitalization of $1.2 trillion and remarkable gains of 373% over the last three years and 772% over five years. In its recent second-quarter fiscal 2025 earnings, Broadcom reported a 20% year-over-year increase in consolidated revenue, with AI semiconductor revenue surging 46% to $4.4 billion, now comprising 29% of total revenue.
Broadcom’s custom AI application-specific integrated circuits (ASICs) are positioned to capture a growing serviceable market projected to reach $90 billion by fiscal 2027. The company anticipates AI semiconductor revenue will increase to $5.1 billion in the next quarter, a 60% rise compared to third-quarter fiscal 2024.
Despite a forward price-to-earnings ratio of 38.7, which is higher than Nvidia’s 33.9, Broadcom continues to demonstrate stability with a growing dividend, having raised it for 15 consecutive years.
