Now, Broadcom – that’s B-R-O-A-D-C-O-M – had a bit of a jump on Thursday. A proper little hop, skip, and bound, climbing as much as 5.9%. As of 1:16 p.m. ET, it was still up 3.5%, which, in a market doing its best impression of a wilting lettuce, is rather splendid indeed. As a portfolio manager, one does like to see a bit of pep, don’t you agree?
The reason for this peculiar perkiness? Artificial Intelligence, naturally. Or, as I like to call it, the Brain-Boosting Bonanza. Broadcom’s been making the bits and bobs that make these clever machines think, and people are snapping them up like sweets in a schoolyard.
A Giggle of Growth
In their latest quarter (ending February 1st, if you’re keeping track – and a sensible investor always does), Broadcom conjured up $19.3 billion in revenue. That’s a 29% increase from last year! Adjusted earnings per share? A delightful $2.05, up 28%. The analysts, those rather predictable chaps, were expecting $19.14 billion and $2.02, so Broadcom gave them a good, solid tickle with its performance. A most satisfying outcome.
It seems this AI business is rather lucrative. Their AI-related revenue hit $8.4 billion – a record! That’s a 106% jump from last year, and accounts for 44% of their total revenue. Nearly half! It’s like finding a golden ticket in every chocolate bar.
The Future’s a Fizzing Concoction
But here’s the really interesting bit. Broadcom is forecasting $22 billion in revenue for the next quarter. That’s a whopping 47% growth! It’s accelerating, you see. Like a runaway train filled with… well, clever chips.
And the CEO, Mr. Hock Tan – a rather formidable fellow, I imagine, with eyes like a hawk and a fondness for counting – let slip a rather astonishing comment. He reckons they’re on track to make over $100 billion in AI revenue – just from the chips themselves – by 2027. $100 billion! That’s enough to build a rather splendid castle, wouldn’t you say?
Considering they just made $8.4 billion this quarter, that’s roughly an eleven-fold increase in less than two years. The AI party, as they say, is just getting started. And Broadcom, it seems, has a rather prime seat.
Currently, the stock trades at 32 times forward earnings, but less than 23 times next year’s expected earnings. That, my friends, is an attractive price for a company supplying the very brains of the future. A most agreeable investment, wouldn’t you agree? It’s a bit like finding a perfectly ripe plum in a world of sour grapes.
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2026-03-05 22:03