History Says a $1,000 Investment in Broadcom Will Be Worth This Much by 2028

Broadcom (NASDAQ: AVGO) may be one of the most underrated stocks in the stock market. If you asked an average investor to rank the 10 largest companies in the world by market cap, it would probably get left out or missed most often. Investors don't realize how big Broadcom already is (it's a $1.7 trillion business), but after the massive growth it's expected to undergo, it could be worth far more.

Broadcom is tapping into a major share of the AI computing market with its custom AI chips, and this sector could be a major driver of growth, pushing Broadcom's stock to new heights over the next few years.

But what will a $1,000 investment be worth by 2028? Let's crunch the numbers, as it could be one of the best investments to make right now.

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What are ASICs?

A rapidly growing part of Broadcom's business is ASICs, or application-specific integrated circuits. ASICs have been around for a long time in many industries to do specific tasks. However, they've only recently entered the AI scene, and Broadcom is one of the biggest names in the space.

Currently, GPUs dominate the AI computing landscape. These units are fantastic for a wide variety of workloads, but aren't cheap. Furthermore, many GPUs run one type of workload throughout their service life, so some of these incredible capabilities go unused.

In their place, Broadcom is designing ASICs, or custom AI chips, to replace GPUs in repetitive tasks. By designing them specifically for a workload, Broadcom can achieve better performance at a cheaper price tag -- a win-win for everyone involved.

However, Broadcom must design them for a specific workload, so it cannot just offer ASICs on the marketplace. Instead, it must partner directly with AI firms to design a computing unit to their specs, then sell it back to them as a completed unit. An increasing number of AI firms are doing this, with some of Broadcom's biggest clients including Alphabet, Meta Platforms, OpenAI, and Anthropic. These four companies are increasingly purchasing custom AI chips tailored to their workloads, boosting Broadcom's business.

During Q3 of fiscal year 2026, ending Aug. 2, Broadcom delivered $16.7 billion in AI semiconductor revenue, up 221% year over year. That's some solid growth, but Broadcom is far from done.

The company expects its custom AI chip sales to really pick up, with FY 2026's AI semiconductor sales estimated to top $65 billion, FY 2027's to rise to $115 billion, and FY 2028's to reach $230 billion. That's a rapid growth trajectory, and it suggests Broadcom will deliver huge gains as a stock. But what will a $1,000 investment be worth by 2028?

Broadcom is a no-brainer stock to buy now

Broadcom has earned its place among the best big tech companies with its rapid growth and solid execution. As a result, I think a long-term valuation multiple of 30 times earnings seems reasonable. While earnings per share forecasts are typically limited to the current and next year, some forecasts are available for two years out.

Right now, Wall Street analysts estimate Broadcom's average earnings per share for its 2028 fiscal year at $28.08. At 30 times earnings, the stock would be valued at $842 per share. With the stock trading for about $360 right now, that indicates potential upside of 134%.

That would turn a $1,000 investment into $2,340 in just over two years. That's a solid return on investment, and I think it makes Broadcom a top AI stock to buy right now.

Keithen Drury has positions in Alphabet, Broadcom, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Broadcom, and Meta Platforms. The Motley Fool has a disclosure policy.