Broadcom’s AI Revenue Is Taking Off. Back Up the Truck on AVGO Stock Now.

Broadcom (AVGO) is well-positioned to deliver strong growth in the quarters ahead. The semiconductor and infrastructure software company is witnessing strong growth in its artificial intelligence (AI) revenue, and the momentum is likely to accelerate as Broadcom’s custom AI accelerators, referred to as XPUs, see solid demand.

Last month, Broadcom expanded its partnerships with Alphabet's (GOOGL) Google and Anthropic. Per the U.S. Securities and Exchange Commission (SEC) filing, Broadcom signed a long-term agreement with Google to develop future generations of Tensor Processing Units (TPUs), the custom AI chips powering many of Google’s AI workloads. Moreover, Broadcom will also supply networking and infrastructure components supporting Google’s next-generation AI data center racks through 2031.