Broadcom Expected to Outperform Nvidia
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 09 2026
0mins
Should l Buy AVGO?
Source: Fool
- Optimistic Market Outlook: Broadcom's custom AI chip business is booming, with expectations to generate over $100 billion annually by the end of 2027, compared to $8.4 billion in the last quarter, indicating a potential growth of more than three times in the next three years.
- Strengthened Partnerships: Broadcom is collaborating with AI hyperscalers to design application-specific integrated circuits (ASICs), a strategy that not only meets industry demands but also lays the groundwork for expanding Broadcom's market share in the AI sector.
- Significant Technological Advantage: Broadcom's custom AI chips, such as Google's Tensor Processing Unit (TPU), offer cost advantages in inference and training compared to GPUs, and while their use cases are limited, they have gained widespread recognition within the Google ecosystem, attracting purchases from companies like Meta.
- Favorable Investment Timing: With Broadcom's stock recently down about 25%, this presents a good buying opportunity for investors, and combined with its strong market outlook, it is expected to drive Broadcom's performance beyond Nvidia's.
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Analyst Views on AVGO
Wall Street analysts forecast AVGO stock price to rise
30 Analyst Rating
29 Buy
1 Hold
0 Sell
Strong Buy
Current: 396.720
Low
370.00
Averages
457.75
High
525.00
Current: 396.720
Low
370.00
Averages
457.75
High
525.00
About AVGO
Broadcom Inc. is a global technology firm that designs, develops, and supplies a range of semiconductors, enterprise software and security solutions. The Company operates through two segments: semiconductor solutions and infrastructure software. Its semiconductor solutions segment includes all of its product lines and intellectual property (IP) licensing. It provides a variety of radio frequency semiconductor devices, wireless connectivity solutions, custom touch controllers, and inductive charging solutions for mobile applications. Its infrastructure software segment includes its private and hybrid cloud, application development and delivery, software-defined edge, application networking and security, mainframe, distributed and cybersecurity solutions, and its FC SAN business. It provides a portfolio of software solutions that enable customers to plan, develop, automate, manage and secure applications across mainframe, distributed, mobile and cloud platforms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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