AI Stocks: Broadcom—Not Palantir—Is No Joke

Alright, settle in, folks! You want to talk about AI stocks? Oy vey. It’s like everyone and their mother suddenly became a tech guru. Now, Palantir… Palantir! (PLTR 2.92%) It’s a perfectly respectable company, builds things for the government, spies on… I mean, analyzes data. It went public in 2020, started at ten bucks, now it’s pushing $150 a share. That’s a nice little run. A very nice little run. But let’s not get carried away. It tripled revenue from 2021 to 2025, and even made a profit. A profit! In this economy? Miracles happen, I tell ya. They’re spotting trends, predicting outcomes… probably what my Aunt Mildred does at the bingo hall, but with fancier algorithms.

Analysts are predicting more growth, of course. 49% revenue growth, 53% EPS growth. Sounds impressive, right? It’s like saying a pigeon can fly. But at 140 times forward earnings? And 50 times sales? That’s not an investment, that’s a dare! You’re betting the farm on a hunch. A very expensive hunch. So, before you mortgage the house, let’s talk about a company that might actually offer a little…sanity. A little value. We’re switching gears, people. From the shadowy world of data mining to…chips!

Enter Broadcom (AVGO 0.96%). Now, this is a company with a history. It wasn’t always Broadcom. It started as Avago, then they did a hostile takeover, a corporate rumble in the jungle, and Broadcom emerged victorious. It’s like a tech version of “Rocky.” They make chips for everything: phones, data centers, networking gear… you name it. And they didn’t stop there! They started buying up software companies, like CA Technologies and Symantec. It’s like a tech octopus, reaching into every corner of the market.

From 2021 to 2025, Broadcom’s revenue and earnings grew at a respectable 24% and 27% respectively. Not Palantir-level fireworks, mind you, but steady. Reliable. Like a good plumber. They get 58% of their revenue from chips, 42% from software. A nice balance. And here’s the kicker: they’re bundling chips and software. It’s a one-stop shop. It’s like a deli that also does dry cleaning. Unexpected, but strangely effective.

How Fast Is Broadcom Growing?

Now, some people say Broadcom isn’t an “AI” company. They’re wrong. They don’t make those fancy data center GPUs that Nvidia (NVDA +0.78%) and AMD (AMD +0.41%) are peddling. But they do make ASICs – application-specific integrated circuits. These are custom chips designed for specific AI tasks. Think of it like this: Nvidia makes a Swiss Army knife, Broadcom makes a laser-guided scalpel. Different tools for different jobs. And big companies like Meta and Alphabet’s Google? They love these custom chips. They want to build their own data centers without relying on Nvidia. It’s a power play, folks. A corporate chess match.

In 2025, Broadcom’s AI chip sales soared 65% to $20 billion! That’s a lot of silicon. And they expect that number to keep growing. By 2027, they’re aiming for $60-$90 billion in annualized AI chip revenue. That’s a bold prediction. A very bold prediction. But they’ve got the track record to back it up.

Analysts expect Broadcom’s revenue and earnings to grow at a 45% CAGR from 2025 to 2028. That’s not too shabby. It’s like finding a twenty-dollar bill in an old coat. A pleasant surprise. And at just 16 times this year’s sales and 23 times its adjusted EBITDA, Broadcom is significantly undervalued compared to Palantir and other hot AI stocks. It’s a bargain! A steal!

With an enterprise value of $1.66 trillion, Broadcom is a serious player. It’s a company that’s built to last. So, before you chase the latest AI hype, take a look at Broadcom. It might not be as flashy as Palantir, but it’s a solid investment. A reliable investment. And in this crazy market, that’s worth its weight in gold. Or, you know, silicon.

2026-03-10 22:43

How Fast Is Broadcom Growing?

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