<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>Broadcom benefits from the AI infrastructure build-out in two main ways.</li><li>The company is set to see explosive growth in the coming years. </li><li>10 stocks we like better than Broadcom ›</li></ul>Spending on artificial intelligence (AI) infrastructure is soaring, and AI chip clusters are ballooning in size, reaching more than 1 million chips. One of the companies best positioned for this trend is Broadcom (NASDAQ: AVGO).Broadcom benefits from the increasing size of AI clusters in two main ways. The first is that the company is a market leader in networking technology. The company has an entire portfolio of products -- including ethernet switches, digital signal processors (DSPs), SerDes (Serializer/Deserializer), and network interface cards (NICs) -- dedicated to optimizing data flow and distributing AI workloads across servers. As the size of AI chip clusters grows, so does the importance of networking equipment to avoid data flow bottlenecks.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »Broadcom is at the forefront of networking technology, and it just recently introduced its Tomahawk 6 ethernet switch to specifically handle the demands of AI clusters with over 1 million XPU chips. The company grew its AI networking revenue by 60% last quarter, and this growth is only expected to accelerate as AI chip clusters grow in size. <img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2MTM3Ny9nZXR0eWltYWdlcy0yMDc4OTE3MTA5LmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="411" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2MTM3Ny9nZXR0eWltYWdlcy0yMDc4OTE3MTA5LmpwZyZ3PTcwMA"/>Image source: Getty Images. <h2>A leader in custom chips</h2>At the same time, Broadcom is also benefiting from the increasing number of AI chips going into data centers and the gradual shift from graphics processing units (GPUs) to XPU AI accelerators. XPUs are essentially hardwired ASICs (application-specific integrated circuits) designed to handle specific workloads like AI model training or inference. Given the high costs of Nvidia's GPUs, hyperscalers (owners of large data centers) have been increasingly turning to XPUs to help handle some of their AI workloads, especially for inference, which is an ongoing cost.Broadcom is a leader in ASIC technology, providing the building blocks to help turn its customers' designs into physical chips that can be manufactured at scale. The company cemented its reputation in this area by helping Alphabet develop its hugely successful tensor processing units (TPUs). The company is seeing huge growth from TPUs alone, as Alphabet has cranked up its AI data center spending, while it's also let large customers order chips directly from Broadcom, including Anthropic, which has placed a $21 billion order. Meanwhile, other hyperscalers, including OpenAI and Meta Platforms, are also working with Broadcom to develop their own AI XPUs. Broadcom has projected that in fiscal 2027, it will generate over $100 billion in XPU revenue alone. That's a huge number, as it is more than 1.5 times the total revenue it produced in fiscal year 2025. Meanwhile, these custom AI customers are also going to need a lot of networking equipment to go along with these huge XPU data centers they are building, setting up Broadcom for explosive growth in the coming years. That's why it's the one stock you want to own to play this trend. <h2>Should you buy stock in Broadcom right now?</h2> Before you buy stock in Broadcom, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Broadcom wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $503,592!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,076,767!* Now, it’s worth noting Stock Advisor’s total average return is 913% — a market-crushing outperformance compared to 185% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of March 24, 2026. Geoffrey Seiler has positions in Alphabet, Broadcom, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

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Broadcom is poised for significant growth due to the increasing demand for AI infrastructure, particularly with the rise of AI chip clusters exceeding 1 million chips. The company leads in networking technology, providing essential products to optimize data flow in AI workloads. Its recent introduction of the Tomahawk 6 ethernet switch caters specifically to these large AI clusters. Additionally, Broadcom is a key player in ASIC technology, supporting major clients like Alphabet and Anthropic. Projections indicate Broadcom could generate over $100 billion in XPU revenue by fiscal 2027, making it a stock to consider for investors looking to capitalize on AI trends.

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Prediction: The "Million-XPU" Data Center Will Be the Most Important Artificial Intelligence (AI) Trend of 2026. Here's 1 Stock to Own.