By Danny Vena, CPA
Publication Date: 2025-12-12 17:10:00
The data center and semiconductor specialist just provided the clearest evidence yet that the adoption of artificial intelligence (AI) continues to gain steam.
The past few years have been a wild ride for Nvidia (NVDA 2.12%) investors. The company’s graphics processing units (GPUs) played a crucial role in recent advances in artificial intelligence (AI) and have become the gold standard for AI training and inference.
The resulting unprecedented demand for its chips sparked a surge in the company’s sales and profits, sending its stock price to new heights. It currently reigns as the world’s most valuable company by market cap, valued at $4.3 trillion (as of this writing), and most experts believe AI adoption will continue to climb over the long term.
In recent months, however, the buzz has begun to fade. Shareholders are looking for confirmation that the AI investment cycle will yield tangible returns. Add to that the talk of an AI bubble, and it’s easy to see why investors are edgy.
Broadcom (AVGO 10.88%) just provided the clearest evidence yet that demand for AI remains robust.
Image source: Nvidia.
Blockbuster results
Broadcom announced the results of its 2025 fiscal fourth quarter (ended Nov. 2), and the results exceeded expectations by a wide margin. Record revenue of $18.01 billion climbed 28% year over year, fueling adjusted earnings per share (EPS) of $1.95, which jumped 37%.
For context, analysts’ consensus estimates called for revenue of $17.46 billion and…
