The way Broadcom entered the $2 trillion club is almost silent. Leather jackets on stage, theatrical product launches, and founder mythology are all absent. Just a Palo Alto-based chipmaker that continued to operate after reaching an all-time high on April 22. When AVGO closed on April 24 at $422.76, up an additional 0.67% for the day, analysts were already asking one another the question that always comes after a run like this: how much room is left?
Any data center being built this year will have racks waiting for silicon that isn’t yet available in large quantities. accelerators made to order. Changing gears. The majority of consumers are unaware of networking chips. In recent years, Broadcom has been producing a lot of that quiet plumbing for the biggest names in computing. The new Tensor Processing Unit chips, the TPU 8t for training and the TPU 8i for inference, are linked to the expanded partnership with Google Cloud. This kind of relationship doesn’t make news until it does. These TPUs are co-designed by Google and Broadcom. It was once a footnote. It’s the story now.
The Meta deal followed. a multi-generation, multi-year agreement to jointly develop AI accelerator chips through 2029. Investors appear to think that this is the point at which Broadcom ceased to be a beneficiary of the AI build-out and instead joined its framework. Observing the news flow gives the impression that the company has subtly positioned itself as the second name that people mention after Nvidia—more like a backbone than a direct rival.
The enthusiasm can be explained by the numbers. Revenue for the first quarter of fiscal 2026 was $19.31 billion, up 29.47% from the previous year. $10.19 billion was earned. The stock has increased 22.41% so far this year, while the S&P 500 has only increased 4.67%. AVGO has returned more than 900% over the past five years; until you double-check the figure, it almost seems like a typo.
Even so, the P/E ratio of 82.47 is difficult to ignore. By all historical standards, that is costly, and the bears are not wholly incorrect to point that out. The AI upside is real, according to some analysts, but the margins might not grow as the bulls anticipate. Additionally, there is the technical picture, which is a “golden cross” that was created when AVGO’s 50-day moving average crossed above its 200-day moving average. Traders view this pattern almost like a weather forecast. It rains occasionally. It doesn’t always.
The CEO, Hock Tan, has managed this business with an unsentimental discipline that is uncommon in Silicon Valley. Purchases. Reductions in costs. Dividend increases for fifteen years in a row. It’s not glamorous, but it’s the reason Taiwan Semiconductor Manufacturing, Apple, Microsoft, and Broadcom are now in the same sentence.
It’s genuinely unclear what will happen next. The AI infrastructure cycle may continue for years, or it may end when hyperscaler capital expenditures plateau. However, for the time being, the factories are operating, the alliances are strengthening, and the stock continues to rise. As you watch this develop, you get the impression that Broadcom has evolved into the kind of business that no longer needs to yell.