--- title: "Up 23%, Should You Buy Broadcom Stock?" type: "News" locale: "en" url: "https://longbridge.com/en/news/286978464.md" description: "Broadcom's stock has surged 23% year-to-date, driven by its potential to generate $100 billion in AI revenue by 2027 through partnerships for its XPU AI chips. Despite a recent price increase, analysts project a 41% annual earnings growth over the next few years, suggesting the stock may still hold value for long-term investors. However, it was not included in a list of top recommended stocks, indicating caution for potential buyers." datetime: "2026-05-20T00:00:28.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286978464.md) - [en](https://longbridge.com/en/news/286978464.md) - [zh-HK](https://longbridge.com/zh-HK/news/286978464.md) --- # Up 23%, Should You Buy Broadcom Stock? ## Key Points - Broadcom has a path to $100 billion in artificial intelligence (AI) revenue in 2027, thanks to some blockbuster partnerships for its XPU AI chips. - The company is well positioned as AI's technological needs shift from model training to real-world use. - Broadcom stock isn't cheap anymore, but there's enough value to consider buying and holding shares. - 10 stocks we like better than Broadcom › Up until recently, **Broadcom** (NASDAQ: AVGO) was having a poor 2026. The stock declined by roughly 15% from January through March, only to begin a surge in April that has shares sitting up 23% year to date. However, Broadcom stock has been a remarkable investment for years now, up a staggering 860% over the past five years alone. Investors who passed on buying the recent dip may be kicking themselves, but it's not necessarily too late to buy the stock if you're willing to hold shares for a while. After all, buying the dip over the past five years has continued to work in your favor. _**Will AI create the world's first trillionaire?** Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. **Continue »**_ Here's why Broadcom is likely still worth buying, despite its recent run-up to yet another all-time high. Image source: The Motley Fool. ## AI growth is adding yet another jewel to Broadcom's crown Broadcom's success isn't anything new. The company has been a fantastic stock to own for years preceding the artificial intelligence (AI) boom. Broadcom has long been a leader in networking chips and has diversified into enterprise infrastructure software. What's new and exciting for Broadcom is its rise to the forefront of custom silicon for AI hyperscalers. Many of the largest AI companies investing in data centers have begun looking to alternatives to **Nvidia**'s GPUs. As a result, Broadcom has leveraged its chip expertise to design XPUs for several high-profile customers, including **Alphabet**, Anthropic, OpenAI, and **Meta Platforms**. Broadcom customizes its XPUs for each client's needs, resulting in more efficient performance. Nvidia isn't going away, as there's simply too much need for computing power in today's AI landscape. The pie is plenty large enough for everyone to eat. That said, it's never wise to put all the eggs in one metaphorical basket. These AI companies wisely don't want to give Nvidia too much control over their AI infrastructure. ## Drilling into the AI numbers Broadcom's XPU business is still in its early innings. These chips are especially useful for inference workloads, which involve applying AI models to real-world applications. The story had been about training AI models, but as actual AI adoption continues, there could be an increasing shift from training to inference. The company earned $20 billion from AI last year, with much of that coming from networking chips. As these XPU deals begin to ramp up, look for AI revenue to skyrocket. CEO Hock Tan has hinted that AI revenue could surge past $100 billion by next year, a potential fivefold increase in Broadcom's AI sales. Broadcom's total revenue in 2025 was $63.9 billion, so the XPU opportunity could more than double the company's size in relatively short order. That explosive growth is why Broadcom's valuation is more attractive than you might expect for a stock that's risen so much, so quickly. ## Less value at these prices, but enough to buy the stock Sure, it would have been better to have bought Broadcom stock a couple of months ago, when it was in a slump. The stock's recent run has pushed its price-to-earnings ratio from under 60 to over 80 in a matter of weeks. But there is still enough value here to justify hitting that buy button. The consensus among Wall Street analysts is that Broadcom's earnings will grow at an annualized rate of 41% over the next three to five years. That makes sense, considering the anticipated windfall in AI revenue from Broadcom's XPU deals. So, while Broadcom stock trades at a very high valuation, it has the growth to justify it. That's a PEG ratio of about 2, which isn't a bargain, but it's reasonable for investors willing to buy and hold shares, letting the business grow into that valuation over time. ## Should you buy stock in Broadcom right now? Before you buy stock in Broadcom, consider this: The _Motley Fool Stock Advisor_ analyst team just identified what they believe are the **10 best stocks** for investors to buy now… and Broadcom wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when **Netflix** made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, **you’d have $483,476**!\* Or when **Nvidia** made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, **you’d have $1,362,941**!\* Now, it’s worth noting _Stock Advisor’s_ total average return is 998% — a market-crushing outperformance compared to 207% for the S&P 500. **Don't miss the latest top 10 list, available with _Stock Advisor_, and join an investing community built by individual investors for individual investors.** **See the 10 stocks »** _\*Stock Advisor returns as of May 19, 2026._ _Justin Pope has positions in Alphabet and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Broadcom, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy._ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. ### Related Stocks - [PSI.US](https://longbridge.com/en/quote/PSI.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [AVGU.US](https://longbridge.com/en/quote/AVGU.US.md) - [XSD.US](https://longbridge.com/en/quote/XSD.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [AVL.US](https://longbridge.com/en/quote/AVL.US.md) - [AVGW.US](https://longbridge.com/en/quote/AVGW.US.md) - [AVGG.US](https://longbridge.com/en/quote/AVGG.US.md) - [AVGX.US](https://longbridge.com/en/quote/AVGX.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [AVGO.US](https://longbridge.com/en/quote/AVGO.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [OpenAI.NA](https://longbridge.com/en/quote/OpenAI.NA.md) - [META.US](https://longbridge.com/en/quote/META.US.md) - [INTC.US](https://longbridge.com/en/quote/INTC.US.md) - [NFLX.US](https://longbridge.com/en/quote/NFLX.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Related News & Research - [What's Going On With Broadcom Stock Tuesday?](https://longbridge.com/en/news/286905511.md) - [Broadcom Inc. $AVGO Shares Purchased by World Investment Advisors](https://longbridge.com/en/news/286900013.md) - [Robeco Schweiz AG Acquires 3,100 Shares of Broadcom Inc. $AVGO](https://longbridge.com/en/news/286230292.md) - [Cerebras's stock set for blast off, as early indications point to a near doubling](https://longbridge.com/en/news/286434594.md) - [ARK Investment’s Cathie Wood Boosts Broadcom Stake by 407,803 Shares](https://longbridge.com/en/news/286348923.md)