Overview
- Shares rose 3.5% to a record after Nvidia and Oracle unveiled a Department of Energy supercomputer using 100,000 Blackwell GPUs, with investors expecting related demand for Broadcom connectivity even though it was not named.
- The stock has climbed about 13% over the last week and is up 66.5% for 2025.
- Coverage highlights a reported OpenAI deal for custom chips and networking that investors view as an additional AI demand driver.
- Broadcom’s twin engines of semiconductors and infrastructure software, including VMware, generate roughly $24 billion in annual free cash flow on about $51.6 billion in revenue and have funded roughly $51 billion in dividends and buybacks over a decade.
- The shares trade at a rich valuation near a mid‑90s P/E, and recent comparisons emphasize Nvidia’s faster growth and higher margins, framing an investment trade‑off between momentum and durability.