Broadcom Continues to See Huge AI Opportunity. Should You Buy the Stock Now Before It Soars?

Share prices of Broadcom (NASDAQ: AVGO) initially soared on March 6 after the chipmaker saw robust artificial intelligence (AI) revenue growth in its fiscal 2025 first quarter (ended Feb. 2) and management continued to tout the company's custom AI chip opportunity. Since then, the stock has given back much of its early gains amid the general market malaise. The stock is now down about 21% on the year as of this writing.Let's take a closer look at Broadcom's recently reported results and the custom AI chip opportunity management is pointing out to see if this is a good buying opportunity for investors.CEO Hock Tan got investors excited in December 2024 when he talked about Broadcom's big custom AI chip opportunity with the company's three largest customers. He reiterated that these three "hyperscale customers" (meaning they operate huge data centers) were planning to deploy 1 million AI chip clusters in fiscal year 2027, representing a $60 billion to $90 billion addressable market when including chips and networking equipment for that year alone. Broadcom is currently at around a $16 billion AI revenue annual run rate, so this future opportunity is pretty enormous.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool