In November, Broadcom continued to benefit from the boom in AI infrastructure. On the technology side, the company is deeply involved in custom accelerators, networking interconnects, and hyperscale data center applications. According to the latest analysis from Simply Wall St, Broadcom is making tangible progress in AI accelerators, high-end Ethernet/interconnect chips, and infrastructure software. Its combination of “diversified portfolio + high-end networking + AI accelerators” is powering both its margins and revenue growth.
From a market perspective, global hyperscale cloud service providers could lift capital expenditures to around USD 600 billion by 2026, with roughly 75% expected to flow into AI infrastructure. For Broadcom, this implies a substantial expansion of its addressable market. At the same time, another report highlighted that as Google accelerates the build-out of its AI ecosystem, Broadcom — as one of its key infrastructure suppliers — has become a major beneficiary. The stock jumped by about 10% at one point on 24 November.
Looking ahead, Broadcom’s transformation is moving toward becoming a core “pillar of AI infrastructure.” Its AI SAM is currently valued in the USD 60–90 billion range, but analysts believe that once Broadcom updates its internal valuation models and discloses a larger addressable AI opportunity, this could become a fresh catalyst for the stock. However, challenges remain: the company’s heavy reliance on a small number of large cloud customers, intense competition in the chip and networking industries, and geopolitical risks such as export controls are all potential overhangs.
On the profitability and financial side, Broadcom reported Q3 revenue of about USD 15.95 billion, up roughly 22% year-on-year. In market commentary published in early November, the company guided for continued revenue growth in the next fiscal quarter, with earnings forecasts also revised higher. In addition, its mix of networking equipment, data center interconnect solutions, and infrastructure software is lifting overall margins, as these high-end products typically carry stronger pricing power and higher customer stickiness. This should support ongoing margin expansion and further improvement in gross profit.
Market Takeaway:
All in all, while Broadcom faces potential risks in terms of technology concentration and customer exposure, its expanding addressable market and clear trajectory of revenue and earnings growth stand out. For investors seeking long-term exposure to the AI infrastructure theme, Broadcom remains a compelling long-term candidate.
