The explosive demand for semiconductors and microchips has grabbed news headlines and led the market higher over the past few years. As the drive towards integrating artificial intelligence (AI) into our everyday lives progresses, there are a handful of mega-cap companies that are capable of meeting that demand. And as much NVIDIA Corp. (NASDAQ: NVDA) may get the lion’s share of attention, it is companies like Broadcom Inc. (NASDAQ: AVGO) that will also be playing a central role in supply.

The San Jose, Calif.-based company, which was founded in 1961, has been a major player in the tech space for decades. But its business sectors focusing on semiconductors and infrastructure software products have been major catalysts in its market cap pushing toward $1 trillion market capitalization — good for a top 15 among all publicly traded companies.

Despite shares of Broadcom gaining over 626.34% in the past five years and 39.82% in 2024, 24/7 Wall Street has performed an analysis that suggests there is still a big-time upside for Broadcom before the end of the decade. Here is where prospective investors and current shareholders might expect the stock to be over the course of the next five years.

Key Points in This Article:

• Broadcom’s history of stellar earnings and strong revenue generation suggests the ability of the company to remain one of the most appealing semiconductor and software stocks.
• With the burgeoning AI trend and a recent stock split, Broadcom is increasingly appealing and more accessible to investors.
• If you’re looking for a megatrend with massive potential, make sure to grab a complimentary copy of our “The Next NVIDIA” report. This report breaks down AI stocks with 10x potential and will give you a huge leg up on profiting from this massive sea change.

Recent Broadcom News and Updates

11/19/2024

Broadcom investors are eagerly awaiting Nvidia’s upcoming earnings report tomorrow, as it is poised to significantly impact the broader market, particularly companies like Broadcom, which supplies crucial components for Nvidia’s AI operations. A strong earnings report from Nvidia could boost investor confidence in AI growth and Broadcom’s stocks, as seen on several previous occasions.

11/18/2024

Broadcom experienced a small decline of 0.1% today, trading as low as $162.22. Trading volume was also much lower than average, with only 2,960,294 shares changing hands, a 90% decrease from the usual daily volume.

Broadcom’s Recent Stock Success

Broadcom’s incredible growth has been reflected in the price of its shares, which have surged since 2014 to the tune of a 3,170% gain. This culminated on July 15, 2024, when the company announced a 10-for-1 stock split that made its shares more accessible to all investors by driving the stock’s price down to $167 at the time. Beyond its role in AI and semiconductors, Broadcom is also a major supplier for Apple Inc. (NASDAQ: AAPL), providing the Magnificent Seven mainstay with critical wireless connectivity components and other hardware. According to the company, Broadcom expects 20% growth in wireless revenue just in the final quarter of 2024. Between its semiconductor, software and smartphone business segments, the stock has experienced sizable growth in the recent past:

INSERT TABLE HERE

Year	Share Price*	Revenue**	Net Income**
2014	$10.06	$4.244	$1.343
2015	$14.63	$6.897	$2.613
2016	$18.19	$13.269	$4.672
2017	$25.69	$17.656	$7.255
2018	$25.36	$20.805	$9.391
2019	$31.65	$22.548	$9.452
2020	$43.79	$23.858	$9.993
2021	$66.48	$27.403	$12.578
2022	$55.24	$33.169	$16.526
2023	$111.63	$35.798	$18.378

*Post-split adjusted basis , **Revenue and net income in $billions

Over the course of the last decade, Broadcom’s revenue grew by more than 743% while its net income increased by over 1,268%. Despite a slight contraction in share price in 2022 during an extended bull market that had an outsized impact on the tech sector, on a post-split adjusted basis, shares of Broadcom have climbed 1,009.64% from 2014 through 2023.

As the Silicon Valley mainstay looks towards the second half of the decade, 24/7 Wall Street has identified three key drivers that are likely to positively impact Broadcom’s growth metrics and stock performance through 2030.

Key Drivers of Broadcom’s Stock Performance

1. Exceptional Track Record of Earnings and Revenue Beats: Going back to the first quarter of 2015, Broadcom has beaten earnings in every single quarter except one. That is one earnings miss over the course of 39 quarters. Expectations are that the company will continue to beat on earnings and revenue, with a forecast earnings per share (EPS) of $1.39 for the last quarter of 2024. In the third quarter of 2024, the company posted an impressive 17.65% year-over-year EPS gain, which year-over-year total revenue grew from $8.88 billion in July 2023 to $13.07 billion in July 2024 — an increase of 47.18%.

2. Filling the Gap NVIDIA Cannot Satisfy: For investors concerned about NVIDIA’s possible overvaluation or the company’s inability to single-handedly satisfy the explosive AI-driven semiconductor demand, Broadcom is an alternative that at current prices could be considered a bargain. In September, Barchart.com reported that the “stock looks deeply undervalued … based on its strong revenue, free cash flow, FCF margin, management guidance and analysts’ price targets.” Specifically, that free cash flow has grown markedly between FY 2019 to FY 2023, from $9.27 billion to $17.63 billion good for an increase of over 90%. As demand for semiconductors and microchips continues to grow, Broadcom has an abundance of cash ready to be deployed in order to match that growth.

3. Institutional Ownership: Broadcom is beloved by institutional investors, of which there are 3,382. Of the company’s 4.671 billion shares outstanding, a staggering 3.537 billion of them are held by institutional investors, according to Nasdaq.com. That accounts for 75.74% of the company’s entire stock. The top three largest holders are Vanguard Group with 448 million shares followed by BlackRock at 342 million and Capital World Investors with 224 million shares. Together, those three positions account for $175.432 million in share value. And in the past year, 1,760 institutional investors increased their positions.

Broadcom (AVGO) Price Prediction in 2025

The current consensus median one-year price target for Broadcom is $195, representing a potential upside of 20.02% over the next 12 months. Of all the analysts covering Broadcom, the stock is a consensus buy, with a 1.43 ‘Buy’ rating on a scale from 1 (‘Strong Buy’) to 5 (‘Strong Sell’).

By the end of 2025, 24/7 Wall Street‘s forecast for AVGO shares is $204.27, representing a 22.89% potential upside based on an EPS of $6.19 and a PE ratio of 33.

Broadcom (AVGO) Stock Forecast Through 2030

Year	Revenue*	EPS
2025	$60.492	$6.19
2026	$67.906	$7.29
2027	$75.850	$8.82
2028	$85.222	$11.94
2029	$84.920	$14.93
2030	$86.618	$18.66

*Revenue and net income in $billions

How Broadcom’s Next Five Years Could Play Out

At the end of 2025, we forecast Broadcom’s stock to be trading for $204.27 based on revenue of $60.492 billion, a net income of $34.224 billion, and an EPS of $6.19. The following year, we estimate earnings per share of $7.29 on over $67 billion in revenue.

Starting in 2027 through 2029, we expect a 13% growth in revenue and a 40% jump in earnings per share, bringing Broadcom’s price target from $238.14 in 2027 to $373.13 in 2029.

Broadcom’s Price Target for 2030

By the conclusion of 2030, 24/7 Wall Street estimates Broadcom’s stock will trade at $429.09, representing a 164.10% increase from its current price, based on revenue of $86.618 billion and an EPS of $18.66.

Year	Price Target
2025	$204.27
2026	$196.83
2027	$238.14
2028	$322.38
2029	$373.13
2030	$429.09

 

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