Manhattan, New York
— September 5, 2025

Broadcom stock just keeps on giving.

It’s crazy to me how much more of a household name Nvidia is than Broadcom, given the fact that investors could have made almost as much over the last couple of years investing in Broadcom.

They beat on earnings. They just announced a new $10 billion customer — who we all know is probably OpenAI — and the stock jumped 10% as a result.

Here are a couple of Game Notes breaking down the company, the stock, and their most recent earnings:

• The stock is sitting at about $340 a share.
• They’re now worth $1.6 trillion.
• The stock is up 30% in the last three months, 121% in the last full year, and 288% in the last two years.
• Analysts remain bullish, with price targets as high as $400 a share.

Earnings recap:

• Revenue grew 22% year over year to $16 billion, beating expectations of $15.83 billion.
• EPS came in at $1.69 vs. $1.54 expected.

But let’s dive into what’s really driving the growth — their business segments.

Broadcom’s $16 billion in revenue is split into two buckets:

• Semiconductor Solutions: 58% of revenue
• Infrastructure Software: 42% of revenue

Shoutout to Apokom Insights for putting together those easy-to-read visuals.

Focusing on semiconductors, which is where the real opportunity lies:

• This segment brought in $9.2 billion.
• Within that, AI semiconductor revenue grew 63% YoY to $5.2 billion.
• That $5.2 billion now makes up 33% of Broadcom’s overall revenue.

CEO Hock Tan raised guidance, pointing to strong demand and future growth.

To get a little nerdy: this includes XPUs and networking, where Broadcom sells AI infrastructure to help customers scale up, out, and across in new ways. Having worked at AWS and Oracle, I can tell you this is a big deal.

Risks to watch:

1. A slowdown in customer AI or CAPEX spending
2. AI not proving to deliver a strong ROI
3. Customers potentially building their own solutions and vertically integrating

We like Broadcom over the long run, but we’d love to hear from you as well. Shout us out or let us know your thoughts in the comments.

Be good.