Where Will Broadcom Stock Be in 1 Year?

Shares of Broadcom (NASDAQ:AVGO | AVGO Price Prediction) have entered a bit of a consolidation phase (going sideways in the past six months), and while the name is down just over 18% from its all-time highs, I wouldn’t yet hit the panic button, especially as the Magnificent Seven look to spend heavily in another year of the AI boom. The revolution is alive and well, and many smart leaders continue to think the efforts are going to pay off.

Indeed, if there wasn’t a reasonable chance of a solid return, the heavyweight tech titans probably wouldn’t be so willing to commit magnitudes of investment that would be enough to make shareholders woozy enough to throw in the towel on a stock. Indeed, the CapEx drop in heavy AI spenders has been the talk of the town so far in 2026. And it’s unclear if the selling is over with.

The ultimate custom AI chip play

As investors ponder whether big bets will pay off for the hyperscalers, who may not have much of a choice as the AI boom heads into overdrive, with bottlenecks (think energy, memory, and storage) across the supply chain. Of course, there’s still a chance that a bubble might go boom at some point down the line. Arguably, it’s felt like a bubble if you’ve overweighted the Mag Seven going into this year. In any case, Broadcom is one company that’s poised to collect earlier as the hyperscalers spend heavily.

Perhaps Broadcom is the ultimate next-step play as an increasing number of firms look to design their own silicon for AI inference. It’s efficient, more economical in the long run, and perhaps a way to get around that massive Nvidia toll booth.

Of course, as firms look to design their own silicon, they’ll be avoiding one toll booth for another. And Broadcom is the one that might actually be worth doubling down on, especially since the path forward with custom silicon is more clear than it is for GPUs, which is pretty much the swiss-army knife that does most things well, but perhaps not in the most efficient manner.

Broadcom stock has been a massive gainer, but there’s still a world of growth to be had

Now, I’ve been a massive fan of Broadcom stock for quite a while now. Can you believe that the name used to yield close to 3%? Those days are long gone, with a yield that’s now going for 0.78%. In any case, the secret is out, and Broadcom is the semiconductor juggernaut that has all the tailwind at its back.

With a $1.58 trillion market cap and room to empower its clients to build the silicon for the future of AI, I’d continue to stick with the name. Arguably, ASICs (application-specific integrated circuits) stand out as a way to cash in on the inference boom, which may still be severely undervalued by investors.

As the hyperscalers look to get creative to move forward and around bottlenecks (like energy, although I’m sure going nuclear with reactors is another way around the energy bottleneck), I think we could witness a boom in efficiency-focused ASICs.

With Ark Invest’s Cathie Wood, a respected innovation investor, recently buying up Broadcom stock while offloading a bunch of other top-performing tech names, it’s an encouraging time to be aboard Broadcom, even as shares slump.

In any case, if the big AI spenders continue to spend (perhaps more spending in 2027), some of that money is bound find its way back to Broadcom. In any case, I think the name remains a great hold despite the seemingly frothy 69.8 times trailing price-to-earnings (P/E) multiple.

The bottom line

If you’re looking to shift from GPUs and training to ASICs and inference, Broadcom is a must-watch, in my books. I have no idea which custom silicon will dominate (maybe they all will), but all roads seem to move through Broadcom. And that alone makes the firm sport a ridiculously wide moat.

So, in one year, my guess is that Broadcom will be higher than where it is right now. It’s winning massive customers, and perhaps most excitingly, its OpenAI Titan XPU could make a splash in the year’s second half.