Advances in artificial intelligence (AI) have captured the spotlight since early last year, and many businesses have pivoted to capture this burgeoning market. As a result, companies positioned to profit from this technology have experienced a run-up in their stock prices commensurate with this vast opportunity. One company poised for this paradigm shift is (NASDAQ: AVGO), which provides many of the semiconductors and other products that are key components in AI infrastructure.

The company's consistent performance has fueled its rising share price. Broadcom stock has gained 167% since the start of last year -- which marked the widespread use of generative AI. However, over the past decade, Broadcom's revenue has jumped 881%, pushing its net income up 843%. As a result, the stock has soared 1,980%, enriching shareholders along the way.

When the company released its second-quarter results on Wednesday, investors were in for a surprise: Management announced its first stock split since merging with Avago Technologies in 2016. The stock has surged by more than 900% in the ensuing years, which likely spurred management's decision to split the shares. This revelation is bringing renewed interest to the semiconductor and networking specialist.

Continue reading

Source Fool.com