The artificial intelligence (AI) theme dominated in 2024. One of the beneficiaries was Broadcom. The company looks to build off last year's strength, which should give bullish traders another year of potential gains.
Broadcom offers a range of products, primarily semiconductor, enterprise software, and security solutions. More companies are integrating AI solutions into their core operations. This is where Broadcom's diversified product offerings can be beneficial.
"Broadcom isn't just a business devoted to serving the AI market," Motley Fool explained. "Its products include mainframe software, virtual desktops (mainframe-based software that allows users to access their personal desktop environments and software from any device), and an AI product line. However, most of the excitement around the stock lately has been driven by its virtual desktop and AI products."
There's no denying the long-term growth prospects of AI with research firms like Grand View Research forecasting close to a 37% growth rate between 2024 to 2030. The near-term horizon also looks just as good. In 2025, Exploding Topics reported that the global AI market could grow as much as 38%. Of course, this can certainly bolster revenue projections for Broadcom after a strong 2024.
"On the AI side, Broadcom was generating massive amounts of revenue growth from sales of hardware for the giant AI data centers now being built," Motley Fool added. "Sales of custom AI accelerators and networking components grew by 220% to $12.2 billion in Broadcom's fiscal 2024, which ended Nov. 3. That represented around 24% of its total revenue."
