Broadcom Is Back in the $1 Trillion Club. But the Party Has Just Begun and the Stock Can Hit a New All-Time High, According to 1 Wall Street Analyst.

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only about a handful of stocks that have a $1 trillion market value. The members include some of the most popular in the market -- Nvidia, Tesla, Apple, and Berkshire Hathaway, just to name a few. Toward the end of the last year, the custom chipmaker Broadcom (NASDAQ: AVGO) went on a massive run and joined the exclusive club.However, after the intense sell-off in April due to tariffs and the global trade war, Broadcom fell all the way below a $700 billion market capitalization. After the recent rally that has ensued since mid-April, Broadcom has now rejoined the $1 trillion club (as of May 28).But one Wall Street analyst thinks the party has only just begun and that shares will soon hit a new all-time high.While there will be no unseating Nvidia, long considered the king of the more general graphics processing unit (GPU) space, Broadcom has gained traction with its custom chips designed for more specific work loads. For instance, one of Broadcom's core products is its custom application-specific integrated circuit (ASIC), referred to as XPU.Image source: Getty Images.The XPUs are supposed to be better for inference, which in AI means teaching large language models to leverage real-time data to see patterns and make forecasts that help solve specific tasks. Broadcom works with hyperscalers like Meta Platforms and other key players in the AI sector like OpenAI to develop custom chips for their perspective businesses and AI workloads.Melius Research analyst Ben Reitzes views custom chips less as a competitor to Nvidia and more as a complement. "Companies dual source compute from both Nvidia and Broadcom for flexibility around different workloads -- but all remain committed to both," Reitzes said in his recent research note. He also raised his price target on Broadcom from $198 per share to $283, implying another 19.4% upside from current levels.Part of Reitzes' upgrade includes a rerating to value Broadcom at 30 times his projected 2027 earnings instead of a 22 multiple, because the analyst sees a realistic path to 43% compound annual growth in revenue from AI processors over the next decade. Broadcom has also announced new customers for its custom AI chip solutions, potentially increasing its overall market.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5005,970.81 +0.44 (+0.01%)Dow 3042,427.74 -91.90 (-0.22%)Nasdaq19,460.49 +61.53 (+0.32%)Russell 20002,098.48 -4.50 (-0.21%)VIX17.61 -0.08 (-0.45%)Gold3,371.50 -2.00 (-0.06%)PortfolioSign in to access your portfolioSign inTop gainersLYEL Lyell Immunopharma, Inc. 13.47 +5.48 (+68.59%)APLD Applied Digital Corporation 13.25 +3.00 (+29.27%)GWRE Guidewire Software, Inc. 253.98 +35.80 (+16.41%)ZLAB Zai Lab Limited 36.08 +4.95 (+15.90%)REVG REV Group, Inc. 42.94 +5.72 (+15.37%)Top losersASAN Asana, Inc. 15.11 -3.89 (-20.47%)GTLS Chart Industries, Inc. 146.30 -15.29 (-9.46%)DLTR Dollar Tree, Inc. 88.62 -8.10 (-8.37%)PBF PBF Energy Inc. 17.94 -1.60 (-8.19%)IQST iQSTEL Inc. 11.54 -0.98 (-7.79%)Most activeAPLD Applied Digital Corporation 13.25 +3.00 (+29.27%)NVDA NVIDIA Corporation 141.92 +0.70 (+0.50%)LCID Lucid Group, Inc. 2.2300 +0.0400 (+1.83%)F Ford Motor Company 10.24 +0.05 (+0.49%)PLTR Palantir Technologies Inc. 130.01 -3.16 (-2.37%)Earnings eventsTrending tickersMULN Mullen Automotive, Inc. 16.10 +10.71 (+198.70%)MDB MongoDB, Inc. 199.73 +5.98 (+3.09%)APLD Applied Digital Corporation 13.25 +3.00 (+29.27%)NFLX Netflix, Inc. 1,239.66 +21.72 (+1.78%)FIVE Five Below, Inc. 121.24 -0.97 (-0.79%)Top economic events