Broadcom (AVGO)'s CEO Hock Tan Has Clause In a Contract Extension, Reports Bloomberg

Broadcom Inc. (NASDAQ:AVGO) is one of the Best Stocks to Invest in for the Next 5 Years. On September 9, Bloomberg reported that Broadcom Inc. (NASDAQ:AVGO)’s CEO Hock Tan has a clause in a contract extension, which will bring hundreds of millions of dollars in stock compensation if the company reaches $120 billion in AI product sales by the year 2030. Bloomberg further highlighted that the executive will get 610,521 shares of Broadcom Inc. (NASDAQ:AVGO) if the AI revenue hits $90 billion by FY 2030. Furthermore, if the sales touch $120 billion, the company’s executive is poised for 300% of the payout.

The package strengthens Broadcom Inc. (NASDAQ:AVGO)’s mission to be tagged as the major player in the world of AI computing. On average, analysts polled by Bloomberg anticipate AI chip sales of ~$20 billion for 2025. Broadcom Inc. (NASDAQ:AVGO) achieved record Q3 2025 revenue backed by continued strength in custom AI accelerators, networking, and VMware. The company’s Q3 2025 AI revenue growth accelerated to 63% YoY to $5.2 billion.

Janus Henderson Investors, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:

“Broadcom Inc. (NASDAQ:AVGO), another top contributor in AI infrastructure, has benefited from hyperscalers’ interest in a second source behind NVIDIA’s merchant silicon. The semiconductor company leads in custom silicon development, offering lower cost and better efficiency for specific workloads that don’t require maximum performance GPUs. The market also continues to evolve as custom silicon has gained share relative to merchant chips. Broadcom’s leadership position makes it a clear beneficiary of this shift.”

While we acknowledge the potential of AVGO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.