Broadcom’s AI Shift Deepens As Valuation And Hyperscaler Reliance Stand Out

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• Broadcom reports that AI now accounts for more than half of its semiconductor revenue, with AI-specific sales and backlog reaching new highs.

• The company has secured record AI infrastructure orders from major hyperscalers, reinforcing its role as a core supplier to cloud providers.

• Broadcom is projected to retain a leading market share in AI server compute ASICs through 2027, supported by ongoing partnerships and new product launches.

For investors watching NasdaqGS:AVGO, the story is increasingly about AI infrastructure rather than traditional semiconductors. The shares trade at $332.79, with a very large 3-year return and a 5-year return of about 7x, while the year-to-date move shows a 4.3% decline. Over the past year, the stock is up 61.9%, which gives important context to how the market has reacted as AI has become a bigger part of Broadcom’s business.