By Benjamin Rains
Publication Date: 2026-05-29 19:07:00
Broadcom Inc. AVGO is a critical high-tech AI picks-and-shovels stock in the exclusive $1 trillion+ market-cap club.
Broadcom’s custom AI chips are gaining steam since they can handle workloads similar to Nvidia’s GPUs and could transform the industry. This backdrop is set to help AVGO more than double its earnings and revenue between FY25 and FY27 (after already doing so between FY21 and FY25).
The AI chip stock outclimbed Nvidia over the last year, up roughly 80%, as part of a ~12,900% surge in the past 15 years to crush Tech’s ~875% and its highly-ranked industry’s ~1,600%.
Despite its run to new all-time highs, its average Zacks price target offers 12% upside, and it trades at a 40% discount to its highs at 31X forward 12-month earnings. The company is also a cash cow that pays a dividend.
Now might be the time for investors to consider buying Broadcom stock heading into its Q2 FY26 earnings report on June 3 and holding it for long-term AI upside.
