Prediction: Berkshire Hathaway Will Be Worth More Than Broadcom by 2030

Broadcom (NASDAQ: AVGO) has been a sneaky winner of the artificial intelligence (AI) boom. Share are up nearly 1,000% in the last five years, and the semiconductor and enterprise software company now has a market cap of $1.6 trillion, making it the seventh-largest business in the world according to that metric. It just signed a momentous deal with OpenAI, and its revenue is up 761% in the last 10 years. But that doesn't mean it is automatically a great stock to buy for your portfolio right now. Here's why Broadcom stock is likely overvalued today and why Berkshire Hathaway (NYSE: BRK.B), through steady growth, will supplant it in market cap by 2030.Betting on the AI sector has been fruitful in the last few years, which has caused Broadcom's share price to shoot up. This is not guaranteed to continue. There are a lot of reasons to be skeptical about the hundreds of billions in annual spending on AI infrastructure that is currently generating a much smaller percentage in AI software revenue, and what it means for future spending on semiconductor and datacenter stocks such as Broadcom. Eventually, all this spending on computer chips needs to lead to a financial return, or else it will fall to a much lower equilibrium.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool