Broadcom (NASDAQ: AVGO) has emerged as the dominant supplier of nearly everything inside a hyperscale AI cluster except the GPU, making it a compelling investment target. The core investment thesis is straightforward: Broadcom captures the hyperscaler AI capital budget that does not flow to Nvidia (NASDAQ: NVDA), owning both the custom silicon and AI networking interconnect markets. The financial receipts behind this conviction are striking, with AI semiconductor revenue jumping from $5.20 billion in Q3 FY25 to $10.80 billion in Q2 FY26, a 143% year-over-year increase. Hock Tan stated that “Demand for XPUs and networking is simply insatiable,” a claim supported by the $30 billion-plus in Q2 AI bookings recorded during the quarter. Networking made up almost 40% of AI revenue in Q2, with Broadcom’s Tomahawk 6 standing as the industry’s only 100-terabit Ethernet switch, and a 200-terabit successor taping out this quarter.