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AI Boom Drives Sharp Profit Growth at Broadcom (AVGO)

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

Broadcom Inc. (NASDAQ:AVGO) has consistently beaten the broader market and is on pace to do it again in 2025, which would mark its sixth straight year of outperformance. The last time the stock lagged the S&P 500 was back in 2019. Even then, the gap was narrow. The index climbed 29% that year, while Broadcom shares rose 24%. Overall, long-term investors have been well rewarded. The stock is already up more than 42% so far in 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 prior year. The bigger surprise came from earnings. Net income jumped to $23.1 billion, nearly four times the $5.9 billion reported a year earlier.

Artificial intelligence was the clear growth driver. Broadcom said AI-related semiconductor revenue surged 74% in the most recent quarter. CEO Hock Tan added that demand remains strong into the first quarter, with AI chip revenue expected to roughly double compared with the same period last year.

Much of this strength comes from Broadcom’s custom chips designed for hyperscale customers. In late November, reports surfaced that Meta Platforms may look to buy Alphabet’s Tensor Processing Unit chips. Broadcom has worked closely with Alphabet for years on TPU development.

The company’s AI accelerators are built for highly specific workloads, especially where patterns are well defined. That contrasts with Nvidia’s GPUs, which offer more flexibility across training, inference, and high-performance computing tasks.

Broadcom Inc. (NASDAQ:AVGO) is a global technology company that designs and supplies semiconductors, enterprise software, and security solutions to customers around the world.

While we acknowledge the potential of AVGO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AVGO and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 12 Best Long Term US Stocks to Buy Now and 12 Best Dogs of the Dow to Invest in.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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