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 +2.34%), and it could be one of the best growth stocks to buy and hold for the next half-decade.
NASDAQ: AVGO
Key Data Points
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 +2.05%) (GOOGL +2.10%) and Meta Platforms (META +2.43%).
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.
