Broadcom: The Silicon Harvest of ’26

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Broadcom, a name whispered now among the tech fields, had a strong year in ’25. A good year, yes, but the land shifts, and a harvest doesn’t guarantee the next. The stock rose, a solid climb, nearly half again its former self. But the question hangs, heavy as the autumn air: is there still seed to be sown, or should a man look elsewhere for fertile ground?

I reckon Broadcom is changing, remaking itself like a farmer turning the soil. It’s a slow process, this shifting, but it’s happening. They’re moving away from the broad fields of hardware and software, the things that keep the world ticking, and focusing on something smaller, something more…precise. Custom chips, built for the new machines that think for themselves. These aren’t the general-purpose tools of the past; they’re tailored instruments, honed for a specific task.

The Shaping of Silicon

Broadcom does a lot, always has. Mainframes, the backbone of old money, cybersecurity, a necessity in these times, virtual desktops, and the endless network of connections. A man could get lost in the sheer volume of it all. But the focus now, the true energy, is in these custom chips, these little engines of artificial intelligence.

For a long while, Nvidia’s graphics processors were the go-to for these thinking machines. Powerful things, capable of almost anything. But the world is learning. These AI systems, they’re not generalists. They have their tasks, their specific needs. And a man doesn’t need a tractor to plow a row garden. These new chips, they’re called ASICs – application-specific integrated circuits – and they offer a different kind of power. Less flexibility, perhaps, but a sharper edge, a quicker response, and a price that won’t break the bank.

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Broadcom is becoming the partner of choice for these specialized chips. They’re working directly with the big players, the ones who own the fields, designing these engines of intelligence. And they get a share of the harvest with every chip purchased. Google’s Tensor Processing Unit, the TPU, is a good example. A quiet, capable machine, renowned for its efficiency. It’s a testament to what can be built when a man focuses on a single task.

In the last quarter of ’25, AI semiconductor revenue rose sharply, almost seventy-five percent. A substantial increase. Total revenue for the quarter was eighteen billion. And in the coming quarter, they project over eight billion in AI revenue alone, a hundred percent increase. Broadcom is becoming an AI semiconductor play, and that’s a powerful thing. It’s like finding a new vein of ore in a depleted mine.

As we move through ’26, I expect these AI semiconductors to account for more than half of Broadcom’s sales, and perhaps even three-quarters by the end of the year. This will change how the market sees the stock, aligning it with the likes of Nvidia. It’s a chance to invest in the arms race, if you will, but a more grounded, more sustainable approach.

I believe Broadcom’s stock will perform well in ’26, though it may not see the same dramatic gains as ’25. The land doesn’t always yield such bountiful harvests. But I reckon it’s slated to beat the market, making it a solid investment for a man who’s looking to plant some seeds for the future.

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2026-01-24 00:42