Overview
- Shares are up about 60% in 2025 with a market value near $1.7 trillion as the stock trades at more than 90 times trailing earnings, elevating downside risk.
- Broadcom confirmed a custom-chip collaboration with OpenAI to deploy 10 gigawatts of AI accelerators, while a separate $10 billion Q3 order came from an unnamed customer and was not OpenAI.
- Third-quarter results showed revenue of $15.9 billion, up 22% year over year, with AI semiconductor sales rising 63% to $5.2 billion and management guiding AI revenue growth to exceed 60% heading into 2026.
- Disclosures show new purchases by Reps. Cleo Fields, Ro Khanna and Michael T. McCaul, and Polen Focus Growth Strategy initiated a position citing confidence in a prolonged AI hardware cycle.
- Analysts note choppy quarterly sales even as the five-year growth rate runs near 22%, highlighting execution and funding risks for large-scale AI deployments at today’s valuation.