Broadcom CEO Hock Tan Just Delivered Incredible News for Nvidia Stock Investors

• Broadcom conscionable reported fourth-quarter results that easy outpaced Wall Street's expectations, portion besides raising its guidance.

• The robust results corroborate that artificial quality (AI) implementation continues, contempt opinions to the contrary.

• As the person successful AI chips, Nvidia is well-positioned for the ongoing AI gyration -- arsenic is Broadcom.

• 10 stocks we similar amended than Nvidia ›

The past fewer years person been a chaotic thrust for Nvidia (NASDAQ: NVDA) investors. The company's graphics processing units (GPUs) played a important relation successful caller advances successful artificial quality (AI) and person go the golden modular for AI grooming and inference.

The resulting unprecedented request for its chips sparked a surge successful the company's income and profits, sending its banal terms to caller heights. It presently reigns arsenic the world's astir invaluable institution by marketplace cap, valued astatine $4.3 trillion (as of this writing), and astir experts judge AI adoption volition proceed to ascent implicit the agelong term.

In caller months, however, the buzz has begun to fade. Shareholders are looking for confirmation that the AI concern rhythm volition output tangible returns. Add to that the speech of an AI bubble, and it's casual to spot wherefore investors are edgy.

Broadcom (NASDAQ: AVGO) conscionable provided the clearest grounds yet that request for AI remains robust.

Broadcom announced the results of its 2025 fiscal 4th fourth (ended Nov. 2), and the results exceeded expectations by a wide margin. Record gross of $18.01 cardinal climbed 28% twelvemonth implicit year, fueling adjusted net per stock (EPS) of $1.95, which jumped 37%.

For context, analysts' statement estimates called for gross of $17.46 cardinal and adjusted EPS of $1.87, truthful Broadcom easy surpassed expectations.

Continuing request for AI solutions fueled the company's awesome results, arsenic AI-based gross surged 74% twelvemonth implicit year, marking the 11th consecutive 4th of AI-centric growth. Free currency travel was besides robust, clocking successful astatine $7.47 billion, oregon 41% of revenue.

Broadcom gave investors different reasons to beryllium of bully cheer. CEO Hock Tan revealed that Anthropic was the enigma lawsuit down the $10 cardinal backlog summation successful Q3. He besides noted that the AI start-up had placed an additional $11 cardinal spot order, which is owed to beryllium filled by precocious adjacent year.

Despite filling a barrage of orders to make its grounds revenue, Broadcom's backlog inactive stands astatine $73 billion. Tan besides noted that the institution added a 5th lawsuit for its customized AI chips, with a $1 cardinal bid for transportation successful precocious 2026.