Broadcom Reports 24% Revenue Growth in 2025, AI Chip Revenue Hits $6.5 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Source: Fool
- Significant Revenue Growth: Broadcom's total revenue for fiscal 2025 reached $63.9 billion, marking a 24% year-over-year increase, showcasing the company's robust performance in the semiconductor market, particularly in the AI sector.
- Surge in AI Chip Revenue: In Q4 of fiscal 2025, Broadcom's AI semiconductor revenue hit $6.5 billion, growing 74% year-over-year, indicating a rapidly increasing market demand for its custom chips, surpassing competitors like Nvidia.
- Future Growth Expectations: AI semiconductor revenue is projected to reach $8.2 billion in fiscal 2026, more than doubling from the previous year, reflecting Broadcom's strong growth momentum in the AI market and high customer reliance on its products.
- Advantages of ASIC Chips: Broadcom's application-specific integrated circuits (ASICs) are favored for their efficiency and lower costs in specific workloads, which are expected to drive sustained growth for the company in the coming years, solidifying its market position in AI.
Analyst Views on AVGO
Wall Street analysts forecast AVGO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AVGO is 398.73 USD with a low forecast of 300.00 USD and a high forecast of 480.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
28 Buy
2 Hold
0 Sell
Strong Buy
Current: 332.480
Low
300.00
Averages
398.73
High
480.00
Current: 332.480
Low
300.00
Averages
398.73
High
480.00
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.
