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Nvidia is currently recognized as a leading force in the artificial intelligence sector. However, technology company Broadcom (NASDAQ: AVGO) is emerging as a strong investment opportunity, primarily due to its critical role in AI hardware. In December 2022, Broadcom CEO Hock Tan projected that the AI interconnectivity market could grow to a value of $60-$90 billion by 2027, compared to $15-$20 billion now.
Broadcom’s recent performance illustrates this potential, with AI hardware revenue expected to grow by 65% year-over-year in the current quarter, contributing to the company’s overall fiscal growth of over 20%. Broadcom reported $51.6 billion in revenue during its last fiscal year, with $12.2 billion stemming from AI hardware.
Analysts rate Broadcom as a strong buy, with a current share price near the consensus target of $245.83. The company’s technology is integral to major players in AI, enhancing its position as an underestimated long-term investment within the industry.
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