Broadcom Jumps Nearly 4% as AI Could Reach 54% of Sales

This article first appeared on GuruFocus.

Broadcom (NASDAQ:AVGO), the semiconductor and infrastructure-software powerhouse, jumped approximately 3.8% to $369.005 Thursday after Nvidia (NASDAQ:NVDA) projected roughly 70% growth next year. That forecast sent a clear message: the AI spending wave still has room to run, and Broadcom is riding it through custom accelerators and networking chips.

Broadcom’s AI engine is already roaring. The company delivered $10.8 billion in fiscal second-quarter AI semiconductor revenue, up 143%, and expects $16 billion in the third quarter. That would equal approximately 54% of its projected $29.4 billion in total revenue, while non-GAAP operating margin is expected near 67%.

But investors are paying ahead of the results. Broadcom’s $369.005 share price stands 6.28% above its $347.19 GF Value estimate, signaling that plenty of AI optimism is already baked in. Nvidia just strengthened the industry’s demand story; Broadcom must now keep winning custom-chip deals, protect pricing and turn that massive opportunity into sustained growth.