Broadcom stock is on course to double this year after the company announced a stellar earnings report, claiming the AI growth was only just getting started. As a consequence, the next year’s guidance was also raised by 6%, causing investors to continue piling into the stock in post-market trading.

Broadcom generates revenue from two main business segments: semiconductor solutions and infrastructure software. The growth in the semiconductor solutions segment has been comparatively modest, varying between 3% and 6%. But it jumped to over 12% YoY this quarter, a huge positive for the company.

The astonishing growth in the infrastructure software segment is getting even crazier. From less than 2 billion in revenue at the start of the year, the company has grown the segment to nearly 6 billion, underscoring the AI growth story that management keeps talking about. The success has partly been achieved with the acquisition of VMWare but it is the CEO Hock Tan’s vision that is ultimately making the software part of the business almost as big as the hardware part.

The AI growth story is unlikely to stop in the coming quarters, which is why we believe the AI party is only just getting started. The company’s addressable market for data centers is likely to reach $90 billion by 2027 as per the management.

The stock has also received a boost from the improvement in Apple’s iPhone sales. Apple is a major customer of the chip maker but the company is well aware that the iPhone maker eventually wants to move everything in-house, making its own chips. Apple plans to move away from one of Broadcom’s wireless chips starting next year, though the management claims it is highly engaged with the company on multiple multi-year roadmaps.

For now, AI continues to drive both the company’s top and bottom lines. We are bullish on the stock, as it is one of the largest AI boom beneficiaries after Nvidia and will remain in that position for some time to come.

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