Broadcom Stock Surged 130%, Here’s Why
Broadcom (AVGO)’s stock skyrocketed 128%, fueled by surging revenues and a record jump in profit margins—even as its valuation tightened. Behind this leap: breakthroughs in AI chips, VMware synergy, standout earnings, and fresh AI customers reshaping its future. Let’s unpack the story.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 12032024 | 12032025 | Change | |
|---|---|---|---|
| Stock Price ($) | 166.5 | 379.1 | 127.7% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 46,815.0 | 59,926.0 | 28.0% |
| Net Income Margin (%) | 10.9% | 31.6% | 190.3% |
| P/E Multiple | 152.4 | 94.4 | -38.1% |
| Shares Outstanding (Mil) | 4,663.0 | 4,714.0 | -1.1% |
| Cumulative Contribution | 127.6% |
So what is happening here? The stock soared 128%, driven by a 28% revenue increase and a huge 190% boost in net margin, despite a 38% drop in P/E multiple. Let’s dive into the events behind these shifts.
Here Is Why Broadcom Stock Moved
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- AI Chip Growth: Revenue from AI semiconductors surged consistently, driving strong financial results and outlook.
- VMware Synergy: Successful integration of VMware and shift to subscription model boosted infrastructure software revenue.
- Earnings Performance: Broadcom’s Q1 and Q3 2025 earnings beat estimates; Q2 met expectations.
- New AI Customer: Secured a fourth hyperscale XPU customer with over $10 billion in AI server rack orders.
- AI Infra Development: Unveiled advanced AI networking solutions and made VMware an AI-native platform.
Our Current Assesment Of AVGO Stock
Opinion: We currently find AVGO stock attractive but volatile. Why so? Have a look at the full story. Read Buy or Sell AVGO Stock to see what drives our current opinion.
Risk: A good way to get a feel for AVGO’s risk is to check how far it fell during past market crises. It dropped about 27% in the 2018 correction, nearly 48% during the Covid pandemic sell-off, and roughly 35% in the inflation shock phase. So even with strong fundamentals, AVGO still sees significant pullbacks when markets turn sour. Solid businesses help, but sharp declines are part of the game in tough times.
AVGO stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.