Broadcom Stock: Chasing Records in 2025 – What’s Driving the Rally?

• Why Is Broadcom Outperforming the Tech Sector?
• The Google-Gemini Effect: A Game Changer?
• Beyond Chips: Networking’s Hidden Upside
• Valuation Vertigo: Time to Cash Out?
• FAQ: Your Burning Questions Answered

While the broader tech sector stumbled in November 2025, Broadcom (NASDAQ: AVGO) defied the trend, hitting all-time highs. Fueled by bullish analyst upgrades, AI-driven custom silicon demand, and strategic partnerships like Google’s Gemini 3, the stock has surged 126% YoY. But with a sky-high P/E of 100+, can the momentum hold? We break down the catalysts, risks, and whether the stock is still a buy.

Why Is Broadcom Outperforming the Tech Sector?

While peers like Nvidia and AMD faced volatility, Broadcom’s stock closed at €347.95 last Friday—a 52-week high. The secret sauce? Goldman Sachs’ turbocharged upgrade, citing the company’s dominance in custom AI chips. "Broadcom isn’t just riding the AI wave; they’re building the infrastructure," noted BTCC analyst James Lin. Case in point: AI-related revenues could double to $45B by 2026, per Goldman’s November 2025 report (source: TradingView).

The Google-Gemini Effect: A Game Changer?

Google’s launch of Gemini 3 in late 2025 lit a fire under Broadcom’s TPU (Tensor Processing Unit) business. As Google scales its AI infrastructure, demand for Broadcom’s chips has gone parabolic. "Think of Broadcom as the picks-and-shovels play for the AI gold rush," quipped a Wall Street trader. The partnership contributed to a 40% YoY bump in Broadcom’s Q3 2025 data center sales (source: company filings).

Beyond Chips: Networking’s Hidden Upside

Broadcom’s November 2025 release of Brocade switches underscores its edge in data-center networking. Unlike pure-play chipmakers, Broadcom controls the full stack—silicon, switches, and software. This vertical integration helped margins expand to 65% in Q3, outpacing rivals (source: TradingView). "They’re the Switzerland of tech—everyone needs their gear," remarked an industry insider.

Valuation Vertigo: Time to Cash Out?

At 100x earnings, Broadcom trades at a 300% premium to the semiconductor index. Bulls argue the multiple is justified by 30% EPS growth forecasts for 2026. Bears counter that even a slight guidance miss on December 11 earnings could trigger a 20% correction. "This isn’t a stock for the faint-hearted," warned Lin. Historical data shows Broadcom’s P/E typically reverts to 50x after similar spikes (source: TradingView).

FAQ: Your Burning Questions Answered

What’s Broadcom’s biggest growth driver in 2025?

Custom AI chips, especially for Google’s Gemini project, which could contribute 35% of 2026 revenues.

Is Broadcom overvalued at €347.95?

It depends on execution. The current price bakes in flawless 2026 guidance—any stumble WOULD hurt.

How does Broadcom compare to Nvidia?

Less flashy but more diversified. Nvidia leads in GPUs; Broadcom dominates connectivity and custom silicon.