AI Boom Drives Sharp Profit Growth at Broadcom (AVGO)

Broadcom Inc. (NASDAQ:AVGO) is included among the 13 Top Tech Stocks Paying Consistent Dividends.

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Broadcom Inc. (NASDAQ:AVGO) has consistently beaten the broader marketplace and is connected gait to bash it again successful 2025, which would people its sixth consecutive twelvemonth of outperformance. The past clip the banal lagged the S&P 500 was backmost successful 2019. Even then, the spread was narrow. The scale climbed 29% that year, portion Broadcom shares roseate 24%. Overall, semipermanent investors person been good rewarded. The banal is already up much than 42% truthful acold successful 2025.

On December 11, Broadcom Inc. (NASDAQ:AVGO) posted its full-year results for fiscal 2025. Revenue reached $63.9 billion, up 24% from the anterior year. The bigger astonishment came from earnings. Net income jumped to $23.1 billion, astir 4 times the $5.9 cardinal reported a twelvemonth earlier.

Artificial quality was the wide maturation driver. Broadcom said AI-related semiconductor gross surged 74% successful the astir caller quarter. CEO Hock Tan added that request remains beardown into the archetypal quarter, with AI spot gross expected to astir treble compared with the aforesaid play past year.

Much of this spot comes from Broadcom’s customized chips designed for hyperscale customers. In precocious November, reports surfaced that Meta Platforms whitethorn look to bargain Alphabet’s Tensor Processing Unit chips. Broadcom has worked intimately with Alphabet for years connected TPU development.

The company’s AI accelerators are built for highly circumstantial workloads, particularly wherever patterns are good defined. That contrasts with Nvidia’s GPUs, which connection much flexibility crossed training, inference, and high-performance computing tasks.

Broadcom Inc. (NASDAQ:AVGO) is simply a planetary exertion institution that designs and supplies semiconductors, endeavor software, and information solutions to customers astir the world.

While we admit the imaginable of AVGO arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None.