Prediction: Broadcom Will Be a $3 Trillion Company by the End of 2030

Broadcom (NASDAQ:AVGO) is already one of the most valuable companies in the world, with a market value of about $1.7 trillion. Yet the stock trades near $357 as of this writing, about 28% below its 52-week high of $495.

The slide deepened after the company's Sept. 2 fiscal third-quarter report, even though the results were excellent.

My prediction: Broadcom will be a $3 trillion company by the end of 2030. From about $1.7 trillion, that works out to about 76% upside over a little more than four years, or about 14% annualized.

For a company already this big, that may sound aggressive. But most of the heavy lifting comes from revenue targets management itself laid out on the same day it reported earnings.

Image source: Getty Images.

Accelerating growth

Broadcom's fiscal third quarter of 2026 (the period ended Aug. 2, 2026) showed a company speeding up, not slowing down. Revenue rose 86% year over year to $29.6 billion, driven by artificial intelligence (AI) semiconductor revenue of $16.7 billion -- up 221% from the year-ago quarter and 54% from the prior one. Non-GAAP (adjusted) net income nearly doubled year over year to $16.4 billion. And management guided for about $34.8 billion of fiscal fourth-quarter revenue, including $21.7 billion of AI semiconductor revenue, up 236% year over year.

The bigger numbers came on the earnings call. CEO Hock Tan said Broadcom expects $58 billion of AI revenue this fiscal year, has secured supply to double that to approximately $115 billion in fiscal 2027, and has line of sight to double it again to $230 billion in fiscal 2028.

"Our demand actually exceeds this outlook, and we will work to improve supply," Tan said on the call. In plain terms, the constraints are how much supply Broadcom can secure and how quickly its customers can get the chips deployed, not how much they want to buy.

What does $3 trillion require?

The stock trades at about 19 times the earnings analysts expect for its next fiscal year. That multiple of expected earnings assumes nothing new. After all, it is simply the price the market puts on the company today.

Hold that price-to-earnings multiple steady, and a $3 trillion Broadcom would need about $160 billion of annual profit.

Is that realistic? In the fiscal third quarter, roughly 55 cents of every revenue dollar became adjusted profit. At that rate, $160 billion of profit implies about $290 billion of revenue, nearly triple the roughly $106 billion the company is on track to report this fiscal year.

Management's own targets get surprisingly close. AI revenue alone is mapped at $230 billion in fiscal 2028. Also worth noting, infrastructure software revenue was $8.8 billion in the latest quarter, up 29% year over year, putting it on about a $35 billion annual pace. And the non-AI piece of the chip business (the semiconductor segment did $20.8 billion in the quarter, most of it AI) adds something like $16 billion a year.

Together, that is roughly $280 billion of revenue in fiscal 2028 -- a year that ends more than two years before my deadline.

In other words, the prediction doesn't need a richer valuation. It needs management to deliver revenue it says supply is already secured for, with time to spare if anything slips.

Margins are the main risk

Of course, forecasts aren't revenue. "Line of sight" describes sales Broadcom expects to make, not chips it has shipped, and demand at this scale comes from a short list of enormous customers whose spending plans can change.

Profitability is drifting lower, too. Management guided for fiscal fourth-quarter non-GAAP operating income of about 66% of revenue, down about two percentage points from the quarter just reported, likely reflecting a mix shifting toward lower-margin AI hardware. If 55 cents of profit per revenue dollar becomes 50, the revenue bar rises to about $320 billion.

That would make the timeline tighter. But at the growth rates management is mapping, even the higher bar could be reachable by the end of 2030.

Will Broadcom really be worth $3 trillion by the end of 2030? Ultimately, I think the odds are good.

The forecasts could slip, and the margin trend is worth watching. But a prediction that requires no multiple expansion, just delivery on supply management says is already secured, is one I'm comfortable making. And at about 19 times expected earnings, I think shares are worth considering here.

Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Broadcom. The Motley Fool has a disclosure policy.