Next Nvidia… Will Broadcom become the World’s Most Valuable Company?!

Analysts recommended buying shares of the electronic chip company “Broadcom” as a candidate to top the throne of the most valuable private companies in the world.

Financial companies said that Broadcom is the artificial intelligence chip stock that you should own in 2025.

Record profits:

This came after optimism about Broadcom was fueled by the company’s release last week of its fourth-quarter financial results, where profits exceeded expectations, in addition to its release of revenue forecasts for the current quarter, which also exceeded expectations.

A number of Wall Street analysts, including Goldman Sachs, have recently raised their price targets on Broadcom shares. Broadcom’s specialties lie in the custom artificial intelligence chips that the company develops for large cloud computing companies.

For his part, Broadcom CEO, Hock Tan, told investors during the company’s earnings call last week: “We see an opportunity over the next three years in the field of artificial intelligence.

Cloud computing giants have begun their own journeys to develop their own dedicated AI accelerators.

The Giants Club:

The chipmaker’s recent surge in profits has made it the newest member of the trillion-dollar club, fueling speculation that the company could be on a record high. Shares of both Nvidia and Broadcom have more than doubled in 2024, putting them among the best performers in the S&P 500 this year.

Analysts are more bullish on the former, however, with high expectations for Nvidia in early 2025 and expectations that Broadcom’s next big breakthrough could come later.

“Broadcom’s strong AI story is finding its own moment as Nvidia,” analysts at Bernstein told clients on Monday, according to Investopedia. But they also cautioned that “Broadcom’s core business still has a long way to go,” with material opportunities likely to remain for years.

Chip Manufacturer: Broadcom Corporation is an American multinational corporation that designs, develops, manufactures, and supplies a wide range of semiconductor and infrastructure software products. Broadcom’s product offerings serve the data center, networking, software, broadband, wireless, storage, and industrial markets.