AVGO Stock Could Be a Hidden AI Winner as Sam Altman Says AI Usage Has Exploded

• AVGO stock could benefit from rising AI infrastructure demand as Sam Altman highlights the extraordinary growth in AI token usage
• Sam Altman says AI token usage has grown roughly one million-fold over six-plus years, creating a potential long-term demand driver for Broadcom AI chips
• Broadcom AI chips are already seeing strong demand, with AI semiconductor revenue reaching $16.7B in Q3 and expected to hit $21.7B in Q4, supporting the broader AI infrastructure growth story

AVGO stock has taken the markets by storm, delivering stellar Q3 earnings. Broadcom AI demand has helped the firm attract steady profits, reflected prominently in its Q3 results. The firm reported $16.7B in AI semiconductor revenue in Q3, up 221% YoY. The firm has also projected how its AI chips sales demand is set to grow over the next two years, hitting a $115B projection for fiscal 2027. The Avgo stock story and its evolution are closely tied to growing AI usage, a narrative that, according to Sam Altman, is set to explode in coming years. How will this narrative support Avgo Stock? Let’s explore the key explanations.

Also Read: Uber to Cut 3,300 Jobs as Analysts See 38% Upside for UBER Stock

Sam Altman Highlights Exploding AI Token Usage

Not so long ago, OpenAI’s Sam Altman had highlighted a stark fact. He shared how AI has evolved rapidly and how AI token usage has exploded in terms among consumers. Token, in simpler terms, measures the amount of information that an AI model processes.

Altman was quick to add that more coding, more research, and more customer service have led to a spike in AI token usage, with numbers hitting 100B tokens each month. This development shows how fast artificial intelligence tech is evolving and processing, potentially supporting Broadcom’s AI chip demand and helping it gain further momentum.

He later shared another striking scenario, stating how this usage could climb to hundreds of billions of tokens a month. If this happens, it would entail heavy AI usage, potentially giving companies like Broadcom (AVGO stock) more room to grow.

Why Avgo Stock Could Benefit

Broadcom develops custom AI accelerators and networking technology used by some of the biggest AI companies. Its latest results reflect how the demand for AI infrastructure is set to grow consistently. Per Reuters, Broadcom reported $16.7B in AI semiconductor revenue for Q3.

The company also expects this figure to hit $21.7B in the fourth quarter. It has also projected AI semiconductor revenue of about $115B for fiscal 2027 and $230B for fiscal 2028.

This makes Broadcom (AVGO) stock positioning particularly lucrative and interesting. If AI usage keeps expanding, data center demand could also accelerate, and so will the need for AI infrastructure. The firm further shared how its AI chip sales may grow over the next two years, establishing further momentum for the Avgo stock.

Also Read: 21 Banks Bet Big on Stablecoins as BIS Chief Questions Their Future in Payments