Prediction: A $5,000 Investment in Broadcom Could Be Worth This Much by Late-2028 | The Motley Fool

Broadcom (AVGO +1.71%) has been on fire over the past two years. Given the company’s 70.86% annualized return over this period (as of writing), a $5,000 investment in mid-2024 would be worth about $14,597 today. That’s impressive. But can Broadcom keep the party going? Let’s find out how much a $5,000 investment in the company might be worth in about two years.

What’s driving Broadcom’s performance?

Broadcom designs application-specific integrated circuits (ASICs), or custom chips tailor-made to handle specific workloads. It is also an infrastructure software specialist, a business that generates high-margin recurring revenue through subscription-based licenses. Naturally, the company’s semiconductor business has been the main growth driver in recent quarters. Broadcom’s AI chip business is booming as the company partners with hyperscalers to design their AI chips. The list includes Alphabet (GOOG -0.88%) (GOOGL -0.96%) and Meta Platforms (META +0.37%).