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Introduction

Broadcom (AVGO), a constituent in the MunAiMarkets Pure-Play Fabless Semiconductor Portfolio, surged by 25.8% in May 2025 largely due to its booming AI semiconductor business and strong financial performance.

Here are the details:

1. The company beat estimates for revenue and earnings in Q2, powered by:
   • the surging demand for artificial intelligence (AI) semiconductors,
   • a major increase in its AI networking business, and
   • a major increase in its infrastructure software revenue.
2. While the non-AI semiconductor business is expected to remain flat, the company anticipates improvements in broadband and enterprise networking revenues.
3. Looking ahead, CEO Hock Tan said the company anticipates AI revenue could climb by 15.9% in Broadcom's fiscal third quarter, matching the Wall Street consensus.

About Broadcom

Broadcom has a diverse portfolio across semiconductors, enterprise software, and security. Its products support essential sectors, including cloud computing, data centers, networking, wireless communications, and cybersecurity. With solutions embedded in everything from mobile devices to hybrid cloud systems, Broadcom plays a central role in powering today’s digital infrastructure.

More specifically, the company provides:

• Ethernet switching and routing custom silicon solutions;
• optical and copper physical layer devices, and fiber optic transmitter and receiver components;
• set-top box system-on-chips (SoCs), data over cable service interface specifications cable modem and networking infrastructure, DSL access multiplexer/PON optical line termination products, and Wi-Fi access point SoCs, as well as digital subscriber line (DSL)/cable, passive optical networking (PON) gateways;
• fiber optic components and mobile device connectivity solutions.
• RF front end modules and filters;
• Wi-Fi, Bluetooth, and global positioning system/global navigation satellite system SoCs;
• custom touch controllers;
• inductive charging application specific integrated circuits;
• serial attached small computer system interface and redundant array of independent disks controllers and adapters, peripheral component interconnect express switches, fiber channel host bus adapters, read channel based SoCs, custom flash controllers, and preamplifiers; and optocouplers, industrial fiber optics, industrial and medical sensors, motion control encoders and subsystems, light emitting diodes, ethernet PHYs, switch ICs, and camera microcontrollers. Source

Analyst Ratings

The average analyst rating for Broadcom stock is "Strong Buy". This means that analysts believe this stock is likely to perform very well in the near future and significantly outperform the market.

According to 27 professional analysts, the 12-month price target for Broadcom stock ranges from a low of $190 to a high of $340. The average analyst price target of $266.33 forecasts a 7.86% increase in the current stock price ($246.93) over the next year. Source

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