1 Unstoppable Stock That Could Join Microsoft, Apple, Nvidia, Alphabet, Amazon and Meta in the $1 Trillion Club

“Times are a-changin’,” as Bob Dylan sang.

It used to be industrial and oil companies that topped the list of the world’s most valuable companies, but over the past 20 years, a paradigm shift has occurred at the top. For example, General Electric And ExxonMobil were the largest companies in the world in 2004, in terms of market capitalization, at $319 billion and $283 billion, respectively.

A lot can happen over the course of two decades, and now eight of the ten largest companies come from the technology sector. Microsoft And Apple are engaged in an epic battle for the title of “the most valuable company in the world”. Each of them is currently worth around $3.3 trillion – and the top spot has changed hands several times over the past week. Nvidia hot on their heels with a market capitalization of $3.2 trillion, well ahead Alphabet And Amazonwith market capitalizations of $2.2 trillion and $1.9 trillion, respectively. Metaplatforms brings up the rear in the $1 trillion club, with a market value of $1.2 trillion. The common denominator that has propelled many of these tech stocks higher is the advent of artificial intelligence (AI)and the technological revolution is only just beginning.

With a market capitalization of approximately $851 billion (at the time of writing), Broadcom (NASDAQ:AVGO) recently joined the top 10 and seems destined to join this elite corporate fraternity. The company occupies a unique position in AI infrastructure, and the prevailing secular tailwinds could propel it toward membership sooner rather than later.

Image source: Getty Images.

Do you want some chips with that?

Broadcom provides a broad range of semiconductor, software and security solutions that cover every corner of the mobile, broadband, cable and data center spaces. In fact, the company notes that “99% of all Internet traffic passes through some type of Broadcom technology.” This helps illustrate the company’s critical place in the AI ​​revolution, as this unique set of technologies underpins advances in generative AI, which exists primarily in data centers and the cloud, but which is rapidly evolving towards the periphery.

The VMWare merger late last year was a priority for management as Broadcom worked to transition VMWare products to a subscription licensing model. Cross-selling of these products to Broadcom customers has begun and is expected to accelerate in the coming quarters.

The results show that business is booming. In the second quarter, revenue soared 43% year-over-year to $12.5 billion, while its adjusted earnings per share (EPS) of $10.96 edged up 6%. Management expects its robust growth to continue, leading it to raise its full-year revenue forecast to $51 billion, which would represent growth of 42%.

The company’s strong results also led Broadcom to announce a 10 for 1 stock split which sparked a new wave of interest in the company.

The Road to $1 Trillion

Broadcom’s extended reach…

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