Broadcom’s $AI Juggernaut: Can It Last?

🚀 Broadcom’s AI Boom: Can They Really Keep 60% Growth?

Broadcom’s earnings story has one engine: artificial intelligence. CFRA’s Angelo Zino highlights that AI semiconductors now make up more than half of Broadcom’s chip business, growing at a stunning 60% clip—and that pace could run through 2026. With hyperscale customers like Oracle, OpenAI, and Apple set to ramp their custom silicon orders over the next six to eight quarters, AI is rapidly becoming the lion’s share of Broadcom’s growth narrative. By contrast, legacy businesses remain sluggish, showing only faint signs of recovery and unlikely to drive multiple expansion.

Margins remain a watchpoint. While Broadcom targets eye-popping 66%+ EBITDA margins, its booming AI unit carries slightly lower gross margins than the rest of the portfolio. Still, Zino sees scale offsetting that pressure, keeping profitability intact. The EU’s scrutiny of the VMware deal may pose headline risk, but Zino expects software to remain a steady—if slowing—growth contributor. For investors, the call is clear: Broadcom’s multiple will rise or fall on the strength of its AI pipeline and ability to lock in new marquee customers.

• In this video, Angelo Zino breaks down: Why AI will soon dominate Broadcom’s semiconductor revenue The ramp-up of customers like Oracle, OpenAI, and Apple Whether Broadcom can sustain 66%+ EBITDA margins despite lower AI gross margins Risks from non-AI segments and regulatory hurdles
• 👉 For context: Broadcom is riding the same AI wave that made Nvidia a $4.4T giant, equal to 3.9% of global GDP and rivaling the economies of India or Japan.
• 📈 If you’re following the AI chip race, semiconductors, or earnings season, this is a must-watch.