By Chris Neiger
Publication Date: 2026-05-24 00:30:00
There are a lot of great AI stocks to choose from these days, but they don’t all offer the same long-term opportunities or tap into artificial intelligence (AI) trends as Broadcom (AVGO +1.83%). Nor do they pay a growing dividend, as the company also does.
Broadcom is benefiting from two big AI trends, including a surge in data center demand and shift by big tech companies toward customized processors.
And it’s likely that Broadcom’s impressive run isn’t done yet. Here’s why.
Image source: Getty Images.
How Broadcom is catching two big AI tailwinds
AI is a vast market, so let’s narrow it down to exactly how Broadcom benefits from it. First, its custom AI processors are increasingly in demand by leading tech companies to optimize their AI systems.
Broadcom’s processors can be designed specifically with a tech company’s large language models in mind, making them more efficient and boosting performance. This advantage helped its custom AI application-specific integrated circuits…
