Latest news with #AVGO
Globe and Mail
7 hours ago
- Business
- Globe and Mail
This Artificial Intelligence Stock Has Beaten the Market in 9 of the Past 10 Years. And It's On Track to Do It Again in 2025.
Key Points Broadcom stock has accumulated gains of more than 2,000% in the past 10 years. Strong demand from tech hyperscalers highlights both a strength and vulnerability for the stock. 10 stocks we like better than Broadcom › Investing in top growth stocks is a great way to achieve strong returns and potentially outperform the market as a whole. The S&P 500 is an index of the leading companies on the U.S. markets, and historically, it has risen by 10% per year, though that's an average including up and down years. That return is not guaranteed, but at such a high rate, an investment would double after a little more than seven years. One artificial intelligence (AI) stock that has routinely outperformed the broad index is Broadcom (NASDAQ: AVGO). Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » The semiconductor and infrastructure company has benefited from the growth in tech in recent years, and that has allowed it to outperform the market on a consistent basis. With strong gains once again so fare this year, is Broadcom still a great buy, or could it be due for a pullback? Broadcom has been a top growth stock over the past decade Here's a look at just how well Broadcom has performed over the previous 10 years, compared to the S&P 500. Year S&P 500 Return AVGO Return 2024 23.31% 107.69% 2023 24.23% 99.64% 2022 (19.44%) (15.97%) 2021 26.89% 51.97% 2020 16.26% 38.55% 2019 28.88% 24.28% 2018 (6.24%) (1.02%) 2017 19.42% 45.33% 2016 9.54% 21.78% 2015 (0.73%) 44.30% Data source: YCharts. What's surprising is that the one year when the S&P 500 did better than Broadcom was 2019, when the index finished higher at nearly 29%, versus 24% gains for Broadcom. The past doesn't predict the future, but the tech stock's terrific run can't be ignored. In 10 years, shares of Broadcom have risen by more than 2,000%, while the S&P 500 has increased by around 200%. Can Broadcom's impressive gains continue? As of the end of last week, Broadcom's stock was up around 19% for the year, which was comfortably above the S&P 500's returns of more than 6%. But with a valuation of around $1.3 trillion and Broadcom trading at 33 times its estimated future earnings (based on analyst estimates), it's not a cheap stock to own. The biggest risk is that the company relies heavily on demand from hyperscalers. These are big tech giants that have significant infrastructure needs related to tech and AI. If they scale back on their expenditures, that could significantly weigh on Broadcom's results. The company estimates that its top five customers account for around 40% of its revenue. The company's revenue during the most recent reported period -- which ended on May 4 -- grew by a rate of 20% year over year, as its top line came in at just over $15 billion, while profits more than doubled, rising to nearly $5 billion. If Broadcom can continue producing strong results such as these, it wouldn't be surprising to see it outperform the market once again this year. Though that risk of hyperscalers cutting spending remains. Is Broadcom stock a buy right now? If you're bullish on AI and expect there to be much more growth ahead, Broadcom can make for a compelling investment to simply buy and hold. But at the same time, it's also important to consider the risks ahead, especially as tariffs and trade wars could impact growth in the tech sector in the near future. Earlier this year, Broadcom's stock was underperforming the S&P 500 due to the uncertainty in the markets. While that looks like a distant memory right now, investors should brace for a possible slowdown for the stock as it's trading at an elevated valuation and it may be due for a decline. Its track record may be impressive, but that by no means guarantees it'll always be a market-beating stock. I'd hold off on buying shares of Broadcom only because the markets appear to be a bit too bullish right now, and with high expectations priced in, there's a lot of downside risk that comes with owning the stock. Broadcom isn't a bad buy, but I think there are better AI stocks to invest in today. Should you invest $1,000 in Broadcom right now? Before you buy stock in Broadcom, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Broadcom wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025
Yahoo
7 hours ago
- Business
- Yahoo
This Artificial Intelligence Stock Has Beaten the Market in 9 of the Past 10 Years. And It's On Track to Do It Again in 2025.
Key Points Broadcom stock has accumulated gains of more than 2,000% in the past 10 years. Strong demand from tech hyperscalers highlights both a strength and vulnerability for the stock. 10 stocks we like better than Broadcom › Investing in top growth stocks is a great way to achieve strong returns and potentially outperform the market as a whole. The S&P 500 is an index of the leading companies on the U.S. markets, and historically, it has risen by 10% per year, though that's an average including up and down years. That return is not guaranteed, but at such a high rate, an investment would double after a little more than seven years. One artificial intelligence (AI) stock that has routinely outperformed the broad index is Broadcom (NASDAQ: AVGO). The semiconductor and infrastructure company has benefited from the growth in tech in recent years, and that has allowed it to outperform the market on a consistent basis. With strong gains once again so fare this year, is Broadcom still a great buy, or could it be due for a pullback? Broadcom has been a top growth stock over the past decade Here's a look at just how well Broadcom has performed over the previous 10 years, compared to the S&P 500. Year S&P 500 Return AVGO Return 2024 23.31% 107.69% 2023 24.23% 99.64% 2022 (19.44%) (15.97%) 2021 26.89% 51.97% 2020 16.26% 38.55% 2019 28.88% 24.28% 2018 (6.24%) (1.02%) 2017 19.42% 45.33% 2016 9.54% 21.78% 2015 (0.73%) 44.30% Data source: YCharts. What's surprising is that the one year when the S&P 500 did better than Broadcom was 2019, when the index finished higher at nearly 29%, versus 24% gains for Broadcom. The past doesn't predict the future, but the tech stock's terrific run can't be ignored. In 10 years, shares of Broadcom have risen by more than 2,000%, while the S&P 500 has increased by around 200%. Can Broadcom's impressive gains continue? As of the end of last week, Broadcom's stock was up around 19% for the year, which was comfortably above the S&P 500's returns of more than 6%. But with a valuation of around $1.3 trillion and Broadcom trading at 33 times its estimated future earnings (based on analyst estimates), it's not a cheap stock to own. The biggest risk is that the company relies heavily on demand from hyperscalers. These are big tech giants that have significant infrastructure needs related to tech and AI. If they scale back on their expenditures, that could significantly weigh on Broadcom's results. The company estimates that its top five customers account for around 40% of its revenue. The company's revenue during the most recent reported period -- which ended on May 4 -- grew by a rate of 20% year over year, as its top line came in at just over $15 billion, while profits more than doubled, rising to nearly $5 billion. If Broadcom can continue producing strong results such as these, it wouldn't be surprising to see it outperform the market once again this year. Though that risk of hyperscalers cutting spending remains. Is Broadcom stock a buy right now? If you're bullish on AI and expect there to be much more growth ahead, Broadcom can make for a compelling investment to simply buy and hold. But at the same time, it's also important to consider the risks ahead, especially as tariffs and trade wars could impact growth in the tech sector in the near future. Earlier this year, Broadcom's stock was underperforming the S&P 500 due to the uncertainty in the markets. While that looks like a distant memory right now, investors should brace for a possible slowdown for the stock as it's trading at an elevated valuation and it may be due for a decline. Its track record may be impressive, but that by no means guarantees it'll always be a market-beating stock. I'd hold off on buying shares of Broadcom only because the markets appear to be a bit too bullish right now, and with high expectations priced in, there's a lot of downside risk that comes with owning the stock. Broadcom isn't a bad buy, but I think there are better AI stocks to invest in today. Should you buy stock in Broadcom right now? Before you buy stock in Broadcom, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Broadcom wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy. This Artificial Intelligence Stock Has Beaten the Market in 9 of the Past 10 Years. And It's On Track to Do It Again in 2025. was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Business Insider
4 days ago
- Business
- Business Insider
Broadcom (AVGO) Takes on Nvidia with Its New Tomahawk Ultra Chip
Semiconductor firm Broadcom (AVGO) just launched a new networking chip called the Tomahawk Ultra, which is designed to help artificial intelligence systems transfer data faster between hundreds of connected chips. This release is one of Broadcom's attempts to take on the current market leader, Nvidia (NVDA). Indeed, Broadcom already works with Alphabet's Google (GOOGL) to build its AI chips, which are considered a strong alternative to Nvidia's GPUs. However, the Tomahawk Ultra is specifically built to compete with Nvidia's NVLink Switch chip, which has a similar use case. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Both Broadcom and Nvidia are focused on 'scale-up' computing. This is a strategy where many chips are placed close together in order to work as one powerful system. Interestingly, though, Broadcom says that its chip has some major advantages. According to Ram Velaga, a senior VP at Broadcom, the Tomahawk Ultra can connect four times more chips than Nvidia's version. It also uses an improved version of Ethernet instead of a proprietary data transfer method, which could make it more flexible and easier to integrate into existing systems. This is important because it can save companies time and money, thereby potentially making it a more appealing choice. What is interesting about Broadcom's new chip is that it took the firm's engineers about three years to design and was originally intended for high-performance computing. However, the company shifted its focus once it saw that the generative AI market was growing very fast. It is also worth noting that Broadcom's new chip is being produced by Taiwan Semiconductor Manufacturing Co. (TSM) using a 5-nanometer process, and is already being shipped. Is AVGO Stock a Good Buy? Turning to Wall Street, analysts have a Strong Buy consensus rating on AVGO stock based on 28 Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AVGO price target of $299.23 per share implies 6.2% upside potential.
Business Insider
5 days ago
- Business
- Business Insider
Broadcom Stock (AVGO) Drops as it Says Adios to ‘Unique' $1B Spanish Chip Plant
Shares in U.S. chipmaker Broadcom (AVGO) dropped today as it scrapped plans to invest in a $1 billion plant in Spain. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Talks Crumble According to a Reuters report, talks between the Spanish Digital Transformation Ministry and Broadcom over the deal have broken down. The deal was first announced in 2023 when Broadcom said it was taking advantage of the PERTE Chip program launched by the Spanish Government. It aimed to strengthen the production capacities of the Spanish industry of microelectronics and semiconductors. Broadcom did not say at the time how much it was looking to invest, but the government said the project could be worth $1 billion. It had hoped to create 'large-scale back-end semiconductor facilities unique in Europe.'Broadcom was also likely to boost its European business which currently, in revenue terms, trails other areas of the world. Trump Obstacle According to local press in Spain, the breakdown has been caused by the 'inaction' of the government as well as concerns, from Broadcom's side, around President Trump's opposition to U.S. semiconductor companies investing abroad. Indeed, it went further, claiming that Trump has obstructed the Broadcom investment in Spain as well as 'another joint-venture with another American company, which was also going to make chips in Spain.' Further complicating the issue is the threat from Trump to impose huge 30% tariffs on imports from the European Union from 1 August. This could lead to a sharp reduction in trade between the US and EU and a deterioration in relationships. Another issue Broadcom could be wrestling with is the increasingly forceful manner in which the EU is treating U.S. tech through the Digital Markets Act and the AI Act. Neither Broadcom nor the Spanish government has made any comments on the future of the factory. Is AVGO a Good Stock to Buy Now? On TipRanks, AVGO has a Strong Buy consensus based on 28 Buy and 2 Hold ratings. Its highest price target is $400. AVGO stock's consensus price target is $299.23 implying a 9.06% upside.
Yahoo
6 days ago
- Business
- Yahoo
Goldman Sachs Backs Nvidia and Broadcom as Top AI Stocks to Own
Goldman Sachs just awarded Nvidia (NVDA, Financials) and Broadcom (AVGO, Financials) a major thumbs-up. Both stocks are now on the investment bank's list of top AI ideas, and analyst James Schneider gave both equities new Buy story isn't new, but it's still strong. Schneider thinks the firm is the center of the AI revolution, not just because of its GPUs, but also because of its burgeoning software ecosystem, dedicated customers, and constant stream of new ideas. Goldman thinks there's still potential for the stock to go up, even though it has already gone up more than 20% this year. They set a price objective of $ likes what it sees from Broadcom, which is taking a new approach to AI. The company is making a lot of progress in custom AI chips and infrastructure software, which are two areas that are predicted to bring in more than 40% of its income by 2026. Schneider points out that Broadcom has strong connections with hyperscale cloud providers and that its stable profitability and sticky software make it worth more. What does he want? $ here's the larger picture: Goldman thinks we're not at the conclusion of the AI tale; we're just starting the next act. The first wave was all about constructing infrastructure; now, it's about finding ways to make it work. That means greater chances for businesses like Nvidia and Broadcom that are already doing a lot of message is clear and to the point. If you really want to get into AI, you should put these two stocks on your watchlist and maybe even buy them. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
