10 Most Profitable Stocks of the Last 10 Years

6. Broadcom (NASDAQ:AVGO)  

10-Year Net Income CAGR: 32.74%  

TTM Net Income: $5.09 Billion  

Number of Hedge Fund Investors: 130  

Broadcom (NASDAQ:AVGO) is a technology company that designs, develops, and supplies semiconductor and infrastructure software solutions. The company produces chips for networking, broadband, enterprise storage, and wireless communication for industries such as telecommunications, and data centers.

Broadcom (NASDAQ:AVGO) is well-positioned to benefit from the increasing demand for AI semiconductors. According to Precedence Research, the global AI semiconductor market size was $56.42 billion in 2024 and is projected to reach $232.85 billion by 2034, growing at a CAGR of 15.23%. Broadcom (NASDAQ:AVGO) has already secured key AI customers, including Google, Meta, and ByteDance, and is expected to add Microsoft’s OpenAI as a fourth major customer. The company’s AI-specific chip designs are customized to meet the unique workload demands of hyperscale cloud providers, allowing the company to cater to their precise specifications.

Broadcom’s (NASDAQ:AVGO) acquisition of VMware, in late 2023, has significantly boosted its infrastructure software revenue, with a 200% year-over-year increase, contributing $3.8 billion from VMware in Q3. The integration of VMware has driven a 32% quarter-on-quarter increase in the annualized booking value for VMware Cloud Foundation.

Broadcom (NASDAQ:AVGO) is well-positioned to lead the AI semiconductor market, with AI contributing a growing share of its revenues. The company is expected to grow its earnings by 13.27% this year, and its leadership in AI-specific semiconductors, custom chip designs, and strong position within the AI ecosystem solidify its role as a key industry player, driving long-term growth and market leadership.