The US stock market is beginning late in the year amid growing geopolitical tensions. However, seeing the megacap tech company’s shares become a huge hit, one company came out for interesting reasons. In fact, Broadcom (AVGO) has grown by 600% over the past five years. That growth is wondering if it could reach $2 trillion in market capitalization.
Broadcom has a stable balance sheet, an impressive client base and unique products. Chipmaker contributes to the growing market for AI and CHIP technologies. The chip is used in a wide range of applications, and the chip maker’s numbers speak for itself. The growing demand for Broadcom chips and the rapid expansion of the AI industry continue to drive business growth, making it a promising investment option.
As demand for AI software increases, so does chip technology from Broadcom and others. Therefore, AVGO’s 600% growth over the past five years could continue in the coming years, with Broadcom stock being sent towards Nvidia levels.
In the recent quarter, Broadcom saw revenue growth of $4.1 billion, up 77% year-on-year. Semiconductor stocks have long been considered a high potential purchase on Wall Street. The stock has strong financials, with operating and free cash flows exceeding $6 billion. We believe that it is about 40% of its revenue.
Additionally, a recent Insider Monkey Report found that wealthy investors were attracting attention. Data shows 2.6 billion people hold stakes in Broadcom, with their positions worth over $14 billion. Additionally, 161 hedge funds invested in the fourth quarter of last year, with collective status of over $22 billion. The growing interest at the system level is another contributor to the potential rise in stocks in 2025. If the inventory could collide with NVIDIA levels, then that Broadcom (AVGO).
