It’s become increasingly clear that the world runs on little boxes. Not the sort with kittens in, though those are important too, but the ones humming quietly in vast, refrigerated halls. Data centres, they call them. Essentially, the modern equivalent of a really, really big library, only instead of books, it’s filled with… well, everything. And these libraries are growing faster than a wizard’s beard after a particularly good spell.
The Guild of Alchemists – or, as they’re known in less fantastical circles, market analysts – predict the market for the glowing rocks they put inside these boxes – specifically, the Graphics Processing Units – will swell from a respectable 23.87 billion crowns1 in the current year to a frankly astonishing 201.64 billion crowns by 2032. That’s a compound annual growth rate of 30.5%, which, if you’re not good with numbers, is a lot. It means anyone building these halls, or crafting the glowing rocks within, is poised to profit. Handsomely. One might even say… suspiciously handsomely. But let’s not dwell on that just yet.
Enter Broadcom. They don’t deal in potions or enchanted weaponry, but in Application-Specific Integrated Circuits – ASICs. Think of them as custom-made keys that fit only one very specific lock. In this case, the lock is ‘making calculations really, really fast’. They’re the chaps who take a customer’s bright idea – ‘I want a chip that can sort sheep by colour at 500 per second!’ – and turn it into something you can actually manufacture. At scale. Which, as any self-respecting goblin accountant will tell you, is the only scale that matters.
| Time period | Average annual return |
|---|---|
| Past 3 years | 77.73% |
| Past 5 years | 47.96% |
| Past 10 years | 38.94% |
| Past 15 years | 37.62% |
Now, Broadcom has been growing at a rate that suggests someone has been feeding it enchanted fertilizer. Full-year revenue for 2025 is up 24% year over year, and net income is up a rather cheeky 42%. And the stock price? Well, have a look for yourself.2 It’s not quite the legendary Philosopher’s Stone, but it’s doing a remarkably good job of turning base metal into something a little more… golden.
Let’s indulge in a little hypothetical alchemy. Invest a modest 1,000 crowns today, and assuming a growth rate of 25% per annum (a perfectly reasonable assumption, given their current trajectory), you could find yourself with approximately 9,300 crowns in ten years. Twenty years? A positively regal 87,000 crowns! And that’s just for a single investment. Invest regularly – say, 1,000 crowns per year for two decades – and you could amass a treasury of 345,000 crowns. Enough to buy a small castle, perhaps, or at least a very comfortable wizard’s tower.
What’s particularly intriguing is that Broadcom’s stock doesn’t appear to be priced as if it holds the secrets to the universe. Unlike some of its competitors, which are valued as if they’ve already solved the universe, Broadcom’s forward-looking price-to-earnings ratio of 34 seems… reasonable. And, bless their sensible souls, they actually pay a dividend. A modest 0.8% yield, granted, but likely to increase as they continue to mint money. It’s almost… quaint.
Therefore, allocating a portion of your long-term funds to Broadcom appears to be a perfectly reasonable strategy for wealth creation. It’s not a guaranteed path to riches, of course. Nothing is. But in a world increasingly reliant on little boxes, it’s a bet that seems, shall we say, reasonably well-informed. And in the grand scheme of things, that’s about as magical as it gets.
1 Crowns are, of course, a unit of account. Their exchange rate against modern currencies fluctuates wildly, depending on the prevailing winds and the price of dragon scales.
2 Viewing stock charts can be hazardous to your financial health. Side effects may include excessive optimism, irrational exuberance, and a sudden urge to sell all your possessions and invest in tulips.
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2026-01-30 20:02