Up 130% In a Year, How High Can Broadcom Stock Go?

Broadcom (AVGO) stock has gained about 130% over the past year, driven by a solid demand environment. The company specializes in application-specific integrated circuits (ASICs), highly sophisticated custom chips designed for artificial intelligence (AI) and high-performance computing. As global demand for AI technology continues to soar, Broadcom is poised to benefit from rising spending on AI infrastructure.

Broadcom also generates steady, recurring revenue from its infrastructure software business. The recurring software revenue combined with the explosive growth of its AI chip segment has translated into consistently strong financial performance, pushing AVGO stock higher.

Another significant tailwind is its strategic partnerships with the biggest names in tech. Broadcom recently struck a notable agreement with OpenAI to develop custom AI accelerators, solidifying its position as a key partner to top…