Riding The AI Wave: Why Broadcom Deserves A Spot In Your Portfolio

Summary:

• Broadcom’s stock has surged higher in 2024, driven by the promise of synergies from the VMware acquisition and robust AI revenue growth.
• AI networking revenue soared 158% year-on-year in its fiscal fourth quarter, bolstered by increased AI XPU shipments and significant growth in AI connectivity revenue.
• The company’s recent earnings report highlights a solid performance, reinforcing my buy recommendation.
• Despite some risks and a high valuation, it is a compelling investment opportunity for growth investors interested in AI.

Since I last wrote about Broadcom’s (NASDAQ:AVGO) stock on June 17, 2024, it has risen 37% compared to the S&P 500’s (SPX) 11% rise. As of the end of trading on December 16, 2024, it is

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