Broadcom Trades at 91.4x Earnings as AI Chip Growth Bets on 25.2% Revenue CAGR

3 articles · Updated · Trefis · Jun 3

$68.3 billion in current revenue would need to climb to $263.1 billion over six years to justify Broadcom’s valuation, implying roughly 25.2% annual growth and about $90.6 billion in net income.
91.4x trailing earnings reflects investor confidence in Broadcom’s fast-growing custom AI chip business for six strategic customers, while its other semiconductor and software operations remain largely flat.
Management has already locked in critical component supply for years ahead, but that growth case still depends heavily on sustained hyperscaler spending from a small customer base.
25.2x is the kind of mature multiple the stock may eventually settle toward, leaving little room for execution misses and raising the risk of sharp volatility after any weak quarter.