Prediction: This Unstoppable Stock Will Rejoin the $2 Trillion Club by 2027
Broadcom has become a leading supplier of data center chips and components to the artificial intelligence industry.
Overview
The U.S. is home to 11 companies worth at least $1 trillion, but only six of them are currently worth $2 trillion or more. Semiconductor giant Broadcom (NASDAQ: AVGO) used to be in that exclusive club, but its stock is currently down 23% from its June peak amid concerns about the sustainability of the global artificial intelligence (AI) infrastructure build-out.
Broadcom supplies data center processing chips and components necessary to run AI training and inference workloads, so its stock price can be highly sensitive to any hint of a slowdown in infrastructure spending. Over the last few months, many large companies have imposed AI usage limits on their employees and pivoted workloads to cheaper models to save money. That doesn't bode well for semiconductor demand.
Details
However, Broadcom's latest quarterly report suggests it still has plenty of growth in the tank. The company had a market capitalization of $1.77 trillion as of the market close on Tuesday, Sept. 8, and here's why I predict it will rejoin the $2 trillion club before 2027.
Source
Originally published at www.fool.com.