Broadcom’s backlog and ability to sell both chips and software make it a standout stock.
There are a lot of hyperscalers dominating the headlines as of late, but there’s one tech company with an AI-driven backlog, multiple revenue streams, and a history of strong execution that could stand out from the rest in the coming years. That company is Broadcom (AVGO +2.31%), and it could be one of the best growth stocks to buy and hold for the next half-decade.
Today’s Change
(2.31%) $7.39
Current Price
$327.44
Key Data Points
Market Cap
$1.5T
Day’s Range
$317.64 – $328.60
52wk Range
$138.10 – $414.61
Volume
482K
Avg Vol
30M
Gross Margin
64.71%
Dividend Yield
0.76%
A massive AI-related backlog
Broadcom, the designer and maker of custom semiconductors and infrastructure software, has built an impressive backlog of about $73 billion for AI-specific projects. Broadcom’s entire backlog is $162 billion, according to the company’s CEO, Hock Tan. The backlog exceeds all of Broadcom’s fiscal year 2025 revenue. Of the $73 billion in AI-related orders, $21 billion is from the AI research company Anthropic.
A computer scientist stands in front of a full-wall depiction of a computer network.
Because Broadcom sells both chips and software solutions, it has diversified revenue streams that give it a competitive moat. Broadcom also has contracts with a few of the biggest and well-funded players in AI, including Alphabet‘s Google (GOOG +2.29%) (GOOGL +2.31%) and Meta Platforms (META +2.35%).
Consider buying the dip
There is some concentration risk, as much of Broadcom’s revenue comes from a few major customers. The quickly expanding backlog should, for the most part, temper those concerns.
Broadcom’s stock is down over 7% to start 2026, and while timing the market isn’t a sound strategy, if you’re ready to buy and hold for the next five years, a small dip now is a good thing. The stock has been trading at a premium for the last several months. Broadcom is a compelling growth stock with a promising trajectory. The trillion-dollar-cap business is well positioned to remain a leader in AI infrastructure and chips for a long time to come.
Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Meta Platforms. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.