By Andrews McMeel Syndication
Publication Date: 2026-04-30 10:54:00
Semiconductor chips are big business, present even in today’s refrigerators and automobiles. And as artificial intelligence (AI) infrastructure spending continues to grow, Broadcom (Nasdaq: AVGO) benefits from selling high-performance networking and customized AI chips for data centers.
Analysts forecast annualized earnings growth of about 41% for Broadcom over the next few years. That could support strong returns for the stock, as its forward-looking price-to-earnings (P/E) ratio was recently just 35.
A risk for Broadcom is that data center spending can be cyclical. Budgets can pause or dip, and those slowdowns could send the stock downward.
But a significant part of its business isn’t dependent on AI – such as infrastructure software and general-purpose semiconductor solutions. Broadcom provides non-AI connectivity and storage for wireless, broadband, industrial automation and networking, as well as non-AI infrastructure software for cybersecurity and…
