Broadcom’s stock rose about 7.5-fold over the past five years, but The Motley Fool says investors should not expect a repeat. It argues the shares could still outperform the market, with infrastructure software potentially cushioning a downturn in AI chips.
In the first nine months of fiscal 2026, ended Aug. 2, Broadcom’s semiconductor solutions revenue grew 88%, compared with 13% growth in infrastructure software. Semiconductor solutions generated $48 billion of the company’s $71 billion in revenue for the period, about 68%.
The article says infrastructure software represented 32% of revenue, about $23 billion, in the current fiscal year and could hedge against chip-industry cyclicality. It warns of a possible AI bust, citing a cyclically adjusted P/E ratio of 41, and says any five-year forecast is a guess. The Motley Fool disclosed it owns and recommends Broadcom; author Will Healy said he held no position.
