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This Super Semiconductor Stock Is Up 200% in 2 Years, But Is the $1 Trillion Giant Still a Buy?

The Motley Fool
Summary
Nutrition label

82% Informative

Broadcom is becoming a top supplier of custom data center chips and networking equipment for artificial intelligence ( AI ) workloads.

It's one of only nine American companies in the ultra-exclusive trillion-dollar club.

Broadcom generated $15 billion in total revenue during its fiscal 2025 second quarter (ended May 4 ), which was a 20% increase from the year-ago period.

The company's AI revenue soared by 46% to $4.4 billion during the quarter .

Broadcom trades at a price-to-sales ( P/S ) ratio of 20.5 , which is more than double its 10-year average of 8.5 .

Long-term investors could still do well if the company's hyperscale customers continue to increase their spending on AI accelerators and networking equipment at the current pace.

VR Score

81

Informative language

82

Neutral language

10

Article tone

formal

Language

English

Language complexity

49

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not offensive

Hate speech

not hateful

Attention-grabbing headline

not detected

Known propaganda techniques

not detected

Time-value

medium-lived

External references

14

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