Broadcom (AVGO) Hits All-Time High Anew as Firm Optimistic of $120-Billion AI Revenue by 2030

We recently published AI Frenzy: 10 Stocks Crushing the Market, 6 Climb to Fresh Highs. Broadcom Inc. (NASDAQ:AVGO) is one of the top performers on Wednesday.

Shares of Broadcom Inc. (NASDAQ:AVGO) rallied to a new all-time high on Wednesday as investors gobbled up shares on optimism that it could generate $120 billion in AI revenues over the next five years.

In intra-day trading, Broadcom Inc. (NASDAQ:AVGO) soared to its highest 52-week price of $372.97, before trimming gains to end the day just up by 9.77 percent at $369.57 apiece.

Broadcom (AVGO) Hits All-Time High Anew as Firm Optimistic of $120-Billion AI Revenue by 2030

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This followed a regulatory filing that Broadcom Inc.’s (NASDAQ:AVGO) board of directors moved to grant CEO Hock Tan a total of 610,521 performance stock units (PSU) that could generate him more than $676.89 million over the next five years.

Under the terms, the PSUs will be awarded if Tan can make Broadcom Inc. (NASDAQ:AVGO) generate $120 billion in AI revenues by 2030.

In case the maximum revenue target is not met, Tan will still be able to receive a 200-percent payout percentage of the PSU if the company books $105 billion in AI revenues; 100 percent in case of $90 billion in AI revenues; and none if the company clocks in $60 billion and below by the said timeline.

In case Tan leaves the company early, he could lose the award completely, except if for a good reason or is let go without cause, dies, or becomes permanently disabled.

In the fourth quarter of fiscal year 2024, the company generated $12.2 billion in AI revenues, expanding 220 percent year-on-year.

In the third quarter of fiscal year 2025, Broadcom Inc. (NASDAQ:AVGO) generated $5.2 billion in revenues from AI.

While we acknowledge the risk and potential of  AVGO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AVGO and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.