20 High Growth Mega Cap Stocks You Can Buy And Hold For Next 5 Years

11. Broadcom Inc. (NASDAQ:AVGO) 

Broadcom Inc. is a developer, designer, and seller of different semiconductor devices. AVGO operates through infrastructure software and semiconductor solutions segments. It offers mobile device connectivity solutions, optical and copper physical layer devices, Ethernet switching and routing custom silicon solutions, and other products and services.  The company has grown its revenue by 18.69% over the last 5 years.

Broadcom’s recent growth has come from its custom chip business, as hyperscalers switch from using generic GPUs for AI training to custom GPUs. This trend is unlikely to stop anytime soon and Broadcom is the leader in the segment by a long margin. The company also has a short-term positive trigger as the US government tries to figure out how to resurrect the struggling chipmaker Intel. Analysts at Piper Sandler believe that if Broadcom can get a piece of Intel’s products division, it will be a very lucrative deal for the company:

Assuming that AVGO management pays a premium to the current market cap and is able to turn this business around just as it has almost every other business that it has previously acquired, we think the numbers become extremely compelling.

With Broadcom’s expertise and track record, a potential acquisition even if it comes at a premium, will significantly boost the firm’s long-term potential, possibly helping it outpace the growth shown in the last 5 years.