Prediction: Broadcom Stock Will Trade at This Price in 2030

Investing in artificial intelligence (AI) stocks has been a profitable move in recent years, which isn't surprising, as companies are spending massive amounts of money on this technology to unlock the productivity gains that it is expected to deliver.

Market research firm IDC anticipates that AI will contribute a whopping $22.3 trillion to the global economy by 2030, generating $4.90 in value for every $1 spent on AI services and solutions. Forecasts like that explain why huge investments in AI infrastructure are expected to continue through the end of the decade, at least. Nvidia, for instance, estimates AI data center capital expenditures will be in the $3 trillion to $4 trillion range in 2030.

According to a study from McKinsey, about 60% of AI infrastructure spending is allocated to chips and other computing hardware, so there's a good chance that chipmaker Broadcom (NASDAQ: AVGO) will experience remarkable growth -- and help its shareholders grow their fortunes -- over the next five years.

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Broadcom is on track to clock red-hot growth

When Broadcom released its results for its fiscal 2026 first-quarter (which ended Feb. 1) on March 4, it became evident that its AI revenue is poised to increase at an incredible pace. One of its hottest businesses is designing application-specific integrated circuits (ASICs) and networking chips, which are in great demand in AI data centers.

Given that Broadcom controls a 60% share of the ASIC market, and that this market is expected to triple in value over the next three years, the company anticipates massive growth in its AI revenues. Specifically, Broadcom is confident it can achieve more than $100 billion in revenue from sales of AI chips alone in fiscal 2027. That's a huge number considering that the company's total revenue stood at just under $64 billion in its fiscal 2025.

For additional perspective, Broadcom sold $20 billion worth of AI chips in its fiscal 2025. So, its 2027 forecast points toward a whopping 5x increase in AI chip revenue in just two years. Importantly, Broadcom could sustain that terrific growth beyond next year.

The reason why I say this is very simple. Broadcom peer AMD predicts that the total addressable market (TAM) for AI accelerators deployed in data centers will reach $1 trillion in 2030. Now, ASICs' share of the overall AI chip market is increasing at a healthy clip. TrendForce anticipates ASICs will account for almost 28% of the AI chip market in 2026, up from 24.3% in 2023.

Assuming ASICs account for even 30% of AI chips sold in 2030, Broadcom could be looking at an addressable opportunity worth $300 billion (based on the $1 trillion TAM pointed out above).

If Broadcom continues to maintain its 60% share of this space at the end of the decade, it could generate an impressive $180 billion in AI revenue alone in 2030. That's going to set the stock up for healthy gains.

Impressive growth should translate into terrific upside

Analysts are expecting Broadcom's revenue to jump to $155 billion next year. Assuming the company generates $100 billion from AI chip sales, the rest will come from sales of non-AI semiconductors and its infrastructure software business. Assuming that those non-AI business segments remain constant at fiscal 2027 levels through 2030, and that it generates $180 billion in AI chip revenue that year, Broadcom's top line could hit $235 billion in five years.

So, the company's overall revenue could increase by about 273% in five years (from $63 billion in fiscal 2025), and that may be a conservative estimate, as it is based on no growth at all in its non-AI businesses over that period. After all, according to a forecast from Grand View Research, the infrastructure software market in which Broadcom operates will hit $210 billion in annual revenue in 2030, up from $161 billion in 2024.

The company itself is forecasting a 9% year-over-year increase in infrastructure software revenue in the current quarter to $7.2 billion. What's more, Broadcom booked new contracts worth $9.2 billion in infrastructure software last quarter, suggesting that this business is primed for healthy growth over the next five years.

But even if we remove the growth potential of the infrastructure software business, which produced 35% of its top line last quarter, Broadcom's market cap could increase to $1.8 trillion in 2030 (calculated by multiplying the projected revenue of $235 billion by the U.S. tech sector's average sales multiple of 7.8). That would amount to an increase of 20% from current levels to $384.

However, Broadcom stock could easily deliver bigger gains, especially considering that we haven't assumed any growth in a major portion of its business. Also, Broadcom's red-hot growth is likely to be rewarded with a premium sales multiple. It is trading at 23 times sales right now. A valuation in that range gives it much more room for upside.

It is worth noting that analysts' 12-month median price target of $470 for Broadcom stock points toward a 46% increase from current levels. Even better, almost all 54 analysts covering the stock recommend buying it. All this indicates that Broadcom is likely to remain a top growth stock to hold for the long run.

Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.