Regardless of this year’s stock market volatility, the explosive demand for semiconductors and microchips that has grabbed news headlines and led the market higher over the past few years remains. As the drive toward integrating artificial intelligence (AI) into our everyday lives progresses, a handful of mega-cap companies are capable of meeting that demand. While Nvidia Corp. (NASDAQ: NVDA) may get the lion’s share of attention, companies like Broadcom Inc. (NASDAQ: AVGO) will also be playing a central role in supply.
24/7 Wall St. Key Points:
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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.
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With the ongoing strong AI trend and last year’s stock split, Broadcom has become more appealing and more accessible to investors.
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24/7 Wall St. sees plenty of room for shares to run by the end of the decade.
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The San Jose-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 topping $1 trillion. That places it among the top 10 publicly traded companies.
Lately, Broadcom has been heavily emphasizing its advancements in optical connectivity solutions designed to support the growing demands of AI infrastructure. This includes developments in co-packaged optics (CPO), high-speed DSP and SerDes, and PCIe Gen6 over optics. Second-quarter financial results showed strong revenue and earnings growth, driven by both AI semiconductor solutions and infrastructure software. Broadcom also has announced the termination of its VMware Cloud Service Provider (VCSP) program and the shipment of its new Jericho4 AI chip.
Though shares of Broadcom have gained over 847.4% in the past five years, including 13.3% in the past month, 24/7 Wall St.’s analysis suggests there is still healthy upside for Broadcom before the end of the decade. Here is where prospective investors and current shareholders might expect the stock to head over the next five years.
Broadcom’s Recent Success
Broadcom’s incredible growth has been reflected in its share price, which surged by 3,690% since 2014. On July 15, 2024, the company announced a 10-for-1 stock split, making its shares more accessible to investors by reducing the stock price to $167. Beyond its role in AI and semiconductors, Broadcom is also a major supplier for Apple Inc. (NASDAQ: AAPL), providing the Magnificent 7 mainstay with critical wireless connectivity components and other hardware. Between its semiconductor, software and smartphone business segments, the company has experienced sizable growth in the recent past:
| 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 |
| 2024 | $231.84 | $51.574 | $23.733 |
*Post-split adjusted basis, **Revenue and net income in $billions
Over the past decade, Broadcom’s revenue grew by more than 647% while its net income increased by over 808%. Despite a slight contraction in share price in 2022 during an extended bull market that had an outsized impact on the tech sector, shares of Broadcom climbed 1,009.64% from 2014 through 2023 on a post-split adjusted basis.
Key Drivers of Broadcom’s Stock Performance
As the Silicon Valley mainstay looks toward the remainder of the decade, 24/7 Wall St. has identified three key drivers that are likely to positively impact Broadcom’s growth metrics and stock performance through 2030.
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 in 40 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 second quarter of 2025, the company posted an impressive 43.6% year-over-year EPS gain, while total revenue grew from $12.5 billion in the year-ago period to $15.0 billion, an increase of 20%.
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 deploy to match that growth.
3. Institutional Ownership: Broadcom is beloved by institutional investors, of which there are more than 3,300. Of the company’s 4.61 billion shares outstanding, a staggering 3.54 billion of them are held by institutional investors, according to Nasdaq.com. That accounts for 79.3% of the company’s entire stock. The top three largest holders are Vanguard Group with 483.4 million shares, BlackRock at 371.6 million, and State Street with 184.4 million shares. Together, those three positions account for $317.8 million in share value. And in the past year, at least 2,260 institutional investors increased their positions.
How Broadcom’s Next Five Years Could Play Out
The current consensus median one-year price target for Broadcom has risen to $295.16, though that is less than the current share price. Of 42 analysts covering Broadcom, 39 of them recommend buying shares, six of them with a Strong Buy rating.
At the end of 2025, we forecast Broadcom’s stock to be trading for $253.79 based on revenue of $60.492 billion, a net income of $34.224 billion, an EPS of $6.19, and a PE ratio of 41. The following year, we estimate earnings per share of $7.29 on over $67 billion in revenue.
| Year | Revenue* | EPS |
| 2025 | $60.492 | $6.19 |
| 2026 | $67.906 | $7.29 |
| 2027 | $75.850 | $8.82 |
| 2028 | $85.222 | $11.94 |
| 2029 | $91.920 | $14.93 |
| 2030 | $106.618 | $18.66 |
*Revenue and net income in $billions
Starting in 2027 through 2029, we expect a 13% growth in revenue and a 40% jump in earnings per share, with a shrinking PE, bringing Broadcom’s price target from $307.47 in 2027 to $432.97 in 2029.
By the conclusion of 2030, 24/7 Wall St. estimates Broadcom’s stock will trade at $541.14, representing a more than 70% increase from its current price, based on revenue of $106.618 billion and an EPS of $18.66.
| Year | Price Target | Potential Upside |
|---|---|---|
| 2025 | $253.79 | −19.9% |
| 2026 | $284.31 | −10.3% |
| 2027 | $307.47 | −3.0% |
| 2028 | $382.08 | 20.5% |
| 2029 | $432.97 | 36.6% |
| 2030 | $541.14 | 70.7% |
Why 2026 Could Be an Epic Year for Broadcom Stock
The post Broadcom (NASDAQ: AVGO) Stock Price Prediction and Forecast 2025-2030 (Aug 2025) appeared first on 24/7 Wall St..
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Author: Joel South
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