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.

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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.

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