Broadcom stock outperformed Nvidia in 2025, and this year could see a repeat performance. The company's expansive artificial intelligence (AI) semiconductor and data center business is narrowing the gap with the industry leader, according to Wall Street.
Broadcom Inc. (NASDAQ: AVGO) has greatly surpassed the overall market in the past twelve months, with an approximate 50% increase compared to the S&P 500's 15%. This impressive performance has been fueled by heightened demand for its customized AI chips and AI networking solutions, along with the successful assimilation and financial contributions from its VMware acquisition.
Despite the past 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.
2026 is on a fresh start, and January is nearly halfway over. While we cannot slow the hands of time, we can look at it as an opportunity to make money.
The first few trading days of January have reminded investors that we're still operating in a manic market. Each of the major indexes has closed at a new all-time high in January, and as of the market opening on Jan. 8, all the indexes were positive for the year.
Broadcom launches next-gen Wi-Fi 8 platform and APU to power AI-era connectivity.
Broadcom is proving to be a key beneficiary in the AI networking market, with around $20 billion of non-accelerator AI backlog. Coherent is also benefiting from the ongoing AI networking upgrade cycle.
Stocks rebound as President Trump says not to worry
Tesla is operating in a difficult environment. Taiwan Semiconductor and Broadcom are providing computing units for the AI build-out.
Taiwan Semiconductor will thrive regardless of which computing unit is being used the most. Broadcom's custom AI accelerators may steal some of the new workload coming online.
AVGO shares slump on margin concerns, but booming AI orders and a $162B backlog fuel long-term growth optimism.
AI and healthcare momentum remain strong heading into 2026. NVDA, AVGO and LLY stand out as high-growth leaders with earnings power still driving their rallies.