Broadcom AI Semiconductor Surge Drives 46% Revenue Growth as 3.78 Billion Dollar Volume Ranks 16th

Broadcom (AVGO) fell 0.35% on August 11, with a trading volume of $3.78 billion, ranking 16th among stocks that day. The stock has seen a 107% rise over the past year, driven by its AI semiconductor business. Q2 earnings highlighted a 17% year-over-year increase in semiconductor revenue, with AI-related sales surging 46% to $4.4 billion. Custom AI accelerators and AI networking, which accounted for 40% of AI sales, contributed significantly to the growth.

Management projects AI semiconductor revenue to reach $5.1 billion in Q3, a 60% year-over-year jump, signaling sustained demand. The infrastructure software segment also posted 25% year-over-year growth in Q2, driven by VMware’s shift to subscription-based models. Broadcom’s Tomahawk switches and Jericho routers remain key for AI infrastructure, supporting hyperscale data center expansion.

Analysts maintain a “Strong Buy” consensus, citing demand for XPUs and Tomahawk 6 switches. A $400 price target implies 30% upside from current levels. While the forward P/E ratio of 55.46x appears elevated, analysts justify it with projected 47.7% EPS growth in fiscal 2025. The stock’s 14-day RSI at 65.51 suggests potential for further gains if earnings meet expectations.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day delivered a 166.71% return from 2022 to the present, outperforming the benchmark by 137.53%. This underscores liquidity concentration’s role in short-term performance, particularly in volatile markets. High-volume stocks like Newmont and McKesson demonstrated significant price appreciation, reflecting liquidity-driven volatility and asymmetric risk-reward dynamics in macroeconomic conditions.