Here's How Much You'd Have If You Invested $1000 in Broadcom Inc. a Decade Ago

How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.What if you'd invested in Broadcom Inc. (AVGO) ten years ago? It may not have been easy to hold on to AVGO for all that time, but if you did, how much would your investment be worth today?Broadcom Inc.'s Business In-DepthWith that in mind, let's take a look at Broadcom Inc.'s main business drivers. Broadcom is a premier designer, developer and global supplier of a broad range of semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor (CMOS) based devices and analog III-V based products.Headquartered in San Jose, CA, Broadcom’s semiconductor solutions are used in end products such as enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays.Broadcom’s infrastructure software solutions enable customers to plan, develop, automate, manage, and secure applications across mainframe, distributed, mobile, and cloud platforms. The company’s Symantec cyber security solutions portfolio, include endpoint, network, information and identity security solutions.Broadcom also offer mission critical fibre channel storage area networking (“FC SAN”) products and related software in the form of modules, switches and subsystems incorporating multiple semiconductor products.Broadcom has been aggressively pursuing strategic acquisitions to diversify end markets beyond semiconductors and has been looking to strengthen presence in the infrastructure software vertical particularly.Broadcom reported revenues of $51.574 billion in fiscal 2024. The company has two reporting segments: Semiconductor solutions and Infrastructure software.Semiconductor solutions accounted for 59% of fiscal 2024 revenues. Apart from Broadcom’s semiconductor solution product lines this segment includes IP licensing business.Infrastructure software solutions accounted for 41% of fiscal 2024 revenues. The segment includes mainframe, BizOps, cyber security software solutions, and FC SAN businesses.Broadcom faces stiff competition from Analog Devices, Cisco, Finisar, GlobalFoundries, Intel, Lumentum, MACOM, Marvell, Mediatek, NXP Semiconductors, Qorvo, Qualcomm, ON Semiconductor, Skyworks, Toshiba and Texas Instruments in the semiconductor solutions market.Bottom LineAnyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Broadcom Inc. ten years ago, you're likely feeling pretty good about your investment today.According to our calculations, a $1000 investment made in May 2015 would be worth $16,881.54, or a 1,588.15% gain, as of May 12, 2025. Investors should keep in mind that this return excludes dividends but includes price appreciation.In comparison, the S&P 500 gained 167.47% and the price of gold went up 167.98% over the same time frame.Analysts are anticipating more upside for AVGO. Broadcom is benefiting from strong demand for its networking products and custom AI accelerators (XPUs) as witnessed in first-quarter fiscal 2025. Strong demand for Broadcom’s application-specific integrated chips (ASICs), designed to support AI and machine learning, aids top-line growth. Broadcom expects second-quarter fiscal 2025 AI revenues to jump 44% year over year to $4.4 billion. The acquisition of VMware has benefited Infrastructure software solutions. As of fiscal first quarter, roughly 70% of Broadcom’s largest 10,000 customers have adopted VMware Cloud Foundation. Broadcom’s expanding AI portfolio, along with a rich partner base, reflects solid top-line growth potential. However, gross margin in fiscal second quarter is expected to contract sequentially on unfavorable revenue and product mix. High debt level is a headwind. Shares have gained 14.43% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2025 compared to none lower. The consensus estimate has moved up as well.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Broadcom Inc. (AVGO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks