A $5,000 investment in Broadcom could be worth over $50,000 by 2032 if the company meets Wall Street expectations and maintains strong growth in its artificial intelligence chip business. This projection relies on the stock rising nearly tenfold, a scenario driven by soaring demand for custom AI accelerators.
Broadcom, which was acquired by Singapore-based Avago in 2016 for $37 billion, has shifted its headquarters to the United States and expanded significantly over the past decade. From fiscal 2016 to fiscal 2025, the company's revenue grew at a compound annual growth rate of 19%. During this same period, Broadcom's stock delivered a total return of 2,580% with reinvested dividends, far outpacing the S&P 500's total return of 327%.
In fiscal 2025, Broadcom generated 58% of its revenue from semiconductor solutions and 42% from infrastructure software. The semiconductor segment has seen accelerated growth recently, with year-over-year revenue increasing from 7% in fiscal 2024 to 79% in the second quarter of fiscal 2026. This surge is largely attributed to custom application-specific integrated circuits, or ASICs, designed for AI processing. These chips, often referred to as XPUs, are used by major technology companies including Alphabet's Google, Meta Platforms, OpenAI, and Anthropic to reduce reliance on Nvidia's graphics processing units.
Broadcom's AI chip sales reached $20 billion in fiscal 2025, accounting for 31% of its total revenue. The company expects this figure to increase to $115 billion by fiscal 2027. This growth is supported by additional sales of high-speed Ethernet switch ASICs and optical interconnect components, which are necessary for supporting AI clusters in data centers. Analysts project that Broadcom's revenue and adjusted earnings before interest, taxes, depreciation, and amortization will grow at compound annual rates of 62% and 63%, respectively, from fiscal 2025 to fiscal 2028.
The company's infrastructure software business, which includes assets from CA, VMware, and Symantec, provides a stable revenue stream that may insulate Broadcom from cyclical slowdowns in semiconductor sales. According to Market Research Future, the global AI market could expand at a 38.5% compound annual rate from 2026 to 2035. If Broadcom continues to grow its adjusted EBITDA at a 30% compound annual rate through fiscal 2033 and trades at a multiple of 25 times forward adjusted EBITDA, its market capitalization could exceed $17 trillion by 2032. This would surpass Nvidia's current valuation of $5.6 trillion.