Prediction: Broadcom Will Be a $3 Trillion Company by the End of 2027

The $3 trillion market cap club is a fairly exclusive group. There have only been four companies to breach this threshold: Nvidia, Alphabet, Apple, and Microsoft.

However, I think one stock investors need to look out for is Broadcom (NASDAQ: AVGO). Broadcom is a $1.57 trillion company right now, so for it to join the $3 trillion club by the end of 2027 would require the stock to nearly double. Anytime you can identify a stock with that kind of upside, investors should pay attention. I think Broadcom is one of the top stocks to buy right now, as it's leading a revolution in the artificial intelligence (AI) computing world.

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Broadcom is taking on the king of AI

Since the AI arms race began in 2023, Nvidia's graphics processing units (GPUs) have been the go-to computing unit of choice. GPUs can process multiple calculations in parallel, making them ideal for complex computing problems. GPUs had already been proven in other areas, such as engineering simulations, drug discovery, and cryptocurrency mining. So, it made perfect sense to deploy them to the next major computing workload: AI.

Nvidia GPUs still make up the majority of AI computing units deployed, but there is rising competition. Broadcom is taking Nvidia head-on, but it isn't designing a new GPU. Instead, it's developing custom AI chips in collaboration directly with each AI hyperscaler. Designing a chip tailored to a specific workload isn't a new idea; it has been done for a long time. However, Broadcom is the first major company to do it with AI workloads, and it's seeing massive demand.

In the fourth quarter of 2025, its AI semiconductor revenue rose 74% to $6.5 billion. For Q1 2026, it expects 100% growth to $8.2 billion. That's a rapid expansion, and it should only ramp up as more clients deploy their custom chips throughout the year and into the next.

With a growth rate like that, it's not hard to envision the stock doubling by 2027. But there's more to Broadcom than that.

Broadcom isn't just a chip company

Despite their strong growth rate, AI semiconductor chips aren't Broadcom's largest business unit. For Q1 2026, the company expects $19.1 billion in revenue. While AI semiconductor revenue may take over as the largest segment in Broadcom later in the year, it still makes up less than half of it right now. Unfortunately, Broadom's other parts of the business aren't growing as quickly, so it drags down the overall growth rate.

Still, Wall Street analysts expect Broadcom to grow its revenue at a 52% rate during fiscal year 2026. For fiscal year 2027, they expect an additional 38%. With revenue expected to increase from $64 billion in fiscal 2025 to $133 billion by fiscal 2027, that gives Broadcom's stock a clear runway to be able to double over the next two years, giving it the ability to achieve a $3 trillion market cap.

But 2027 isn't the end of Broadcom. Nvidia projects that global data center capital expenditures will rise to $3 trillion to $4 trillion annually by 2030, up from $600 billion in 2025. That's a huge and expanding market, and Broadcom's custom AI chips are slated to take a huge chunk of market share as hypercalers look to streamline AI costs.

This doesn't mean that Broadcom's chips will replace Nvidia's GPUs. There is still a time and a place for a flexible computing unit that can handle a wide variety of workloads. However, I think the future will hold a more even mix of computing units from Broadcom and Nvidia. I think both stocks are still great to own, and Broadcom is easily on a path to being worth $3 trillion or more by the end of 2027 but could be worth even more by 2030.

Keithen Drury has positions in Alphabet, Broadcom, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Apple, Microsoft, and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.