HomeBusinessThese wonderful stocks have created many millionaires, and could create even more

These wonderful stocks have created many millionaires, and could create even more

When investors run through their mental catalog of the market’s biggest winners ever, they see names like Nvidia And Amazon come to mind. And rightly so. Nvidia’s technology is at the core of most artificial intelligence (AI) platforms, while Amazon is largely responsible for ushering in the age of e-commerce. The profits their shares make millionaires are well justified.

However, there’s another, less obvious name with an equally impressive track record that could continue to deliver outsized profits. That company is that Broadcom (NASDAQ:AVGO). Here’s a closer look at why you might want to take a long-term position in this ticker sooner rather than later.

In the simplest terms, Broadcom makes a wide range of communications technologies. Technically, it’s been doing this since 1961, when it was a division of Hewlett-Packard. The Broadcom name came into being in 1991, when the standalone entity was launched to take advantage of the opportunities presented by the then fledgling broadband and networking industries. Another Hewlett-Packard spinoff company called Avago eventually acquired Broadcom in 2016, merging its wireless and wired communications technology offerings with Broadcom’s, although it clearly chose to use the Broadcom name.

So what does it actually produce? Adapters that connect hard drives to motherboards, Wi-Fi antennas, router hardware, and fiber optic connectivity solutions, to name a few.

However, it’s not the hardware that makes Broadcom such a growth powerhouse. It’s the reason the technology is so needed.

Look, Broadcom’s technology is critical to data centers, and increasingly so thanks to the rapid growth of artificial intelligence.

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Take, for example, the severe delay that occurs when transferring mountains of digital data from one processor to another within the wall of a motherboard connected to another network. Broadcom’s recently introduced Sian2 digital signal processors overcome this problem by being able to process data at an incredible speed of 200 gigabits per second per lane. What does this mean in layman’s terms? It is a particularly important solution for generative AI platforms, which are emerging as one of the more marketable applications of artificial intelligence.

And that’s just a sampling of how crucial Broadcom is to the ever-growing artificial intelligence industry.

The demand for such solutions will not decrease anytime soon. In fact, it will speed up and last for a while.

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