Broadcom (AVGO) Soars Past Expectations with Blockbuster Results, Forecasts $8.2B AI Revenue Driven by XPUs and Networking

Broadcom Inc. (NASDAQ:AVGO) is one of the best Reddit stocks to invest in right now. On December 12, Piper Sandler analyst Harsh Kumar raised the firm’s price target on Broadcom to $430 from $375 and kept an Overweight rating on the shares. According to Piper Sandler, Broadcom delivered blockbuster results and guidance. The company exceeded expectations, driven by substantial AI growth from XPUs and networking. Broadcom forecasts its AI business will hit $8.2 billion in Q1 2026, marking roughly 100% year-over-year growth.

In the full fiscal year 2025, Broadcom’s revenue reached $63.9 billion, which was a strong 24% year-over-year increase. This growth was overwhelmingly propelled by the AI segment, which saw its revenue grow by 65% year-over-year to $20 billion for the fiscal year. The company’s total order backlog for AI-related components, including XPUs, switches, and DSPs, now stands at a substantial $73 billion, which is expected to be delivered over the next 6 quarters, with management expecting this figure to continue growing as new orders are placed.

For Q4 alone, total revenue was $18 billion, up 28% year-on-year. The Semiconductor segment, driven by AI, saw its revenue increase by 35% to $11.1 billion, leading to a full-year revenue of $36.9 billion. However, non-AI semiconductor revenue showed limited growth, increasing only 2% in Q4, with enterprise spending remaining soft. The Infrastructure Software segment also performed well, reporting revenue of $6.9 billion, up 19%, contributing to a full-year revenue of $27 billion. This segment’s growth was fueled by strong adoption of the VMware Cloud Foundation.

Broadcom Inc. (NASDAQ:AVGO) designs, develops, and supplies various semiconductor devices and infrastructure software solutions worldwide. The company operates in two segments: Semiconductor Solutions and Infrastructure Software.

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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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