Right. So, the AI thing. It’s everywhere, isn’t it? Apparently, everyone is upgrading their data centres to cope. Which, frankly, sounds exhausting. Fortune Business Insights says the AI infrastructure market is going to expand at 29.1% a year until 2032. Twenty-nine point one percent. It’s… a lot. It means things are happening. Fast. And naturally, I’m trying to figure out where the money is going to be.
I’ve been looking at Broadcom. It’s not exactly a glamorous name, is it? Not like Nvidia, which is currently being treated as some sort of tech messiah. But that’s probably a good thing. Less hype, potentially more… stability. Broadcom makes these custom chips – ASICs, they’re called – for AI tasks. Apparently, at scale, they’re more cost-effective than Nvidia’s GPUs. Which is good. Cost-effectiveness is always good. Especially when your portfolio is looking a bit… stressed.
It seems the big tech companies – Google, Meta – are starting to install Broadcom’s chips to reduce their reliance on Nvidia. Smart move, really. Don’t put all your eggs in one (very expensive) basket. And Broadcom bundles these chips with networking stuff and software, so it’s a whole package. It’s all very… efficient. Which is a relief. I’m not sure I could cope with inefficiency right now.
Last year, Broadcom’s AI chip revenue rose by 65% – to $20 billion. Twenty billion! That’s a significant number. It now accounts for 31% of their total revenue. Which is… reassuring. It means they’re not entirely reliant on, you know, everything else. Analysts are predicting revenue and earnings growth of 38% and 47% respectively over the next few years. Which sounds optimistic. But then again, analysts always sound optimistic, don’t they?
So, what’s next for Broadcom? They’re expecting to generate $60 to $90 billion in AI chip revenue by 2027. Mostly from just three customers. That’s a bit… concentrated, isn’t it? But they’re also selling networking and optical chips to the broader AI market. And their infrastructure software business is… stable. Apparently. Which is a word I appreciate.
Broadcom has been on a bit of an acquisition spree over the past decade – CA Technologies, Symantec, VMware… It’s a bit like a magpie, collecting shiny things. They’ll probably keep doing that. Acquisitions seem to be the done thing. It’s all very… corporate.
The stock currently looks reasonably valued at 30 times next year’s earnings. Which is… okay. It’s not cheap, but it’s not outrageous. It’s not attracting as much attention as Nvidia, which is probably a good thing. Less frenzy. More… rational thinking. The dividend yield is only 0.8%, which isn’t going to make me retire to the Bahamas, but it’s there. And the payout ratio is low, so they have room to increase it. Which is… promising.
Units of Cryptocurrency Lost: 12. Hours Spent Watching Charts: 9. Number of Panicked Texts to Friends: 24. Perhaps Broadcom isn’t the most exciting investment, but it feels… solid. And right now, solid feels very, very good indeed.
Read More
- TON PREDICTION. TON cryptocurrency
- 2025 Crypto Wallets: Secure, Smart, and Surprisingly Simple!
- The 10 Most Beautiful Women in the World for 2026, According to the Golden Ratio
- Gold Rate Forecast
- Nikki Glaser Explains Why She Cut ICE, Trump, and Brad Pitt Jokes From the Golden Globes
- Here Are the Best Movies to Stream this Weekend on Disney+, Including This Week’s Hottest Movie
- Sandisk: A Most Peculiar Bloom
- Six Stocks I’m Quietly Obsessing Over
- A Prudent Man’s Treasury
- New Supergirl Spot Reveals More of Jason Momoa’s Lobo
2026-01-29 02:12