Broadcom and IBM are considered solid long-term investments.
It might feel a bit daunting to dive into stock investments right now. The S&P 500 is currently close to its all-time highs, and there are various unpredictable economic and geopolitical factors that could potentially disrupt this trend.
However, if you’re looking to invest for several years, it’s better to tune out the distractions and concentrate on quality stocks expected to flourish despite temporary hurdles. Let’s explore two of these robust stocks, Broadcom and IBM, and how they might have transformed a $10,000 investment into significantly more.
Broadcom
Broadcom is well-known for its variety of wireless chips, networking equipment, and AI accelerator chips. Recently, it has expanded its infrastructure software segment significantly through several strategic acquisitions, including the cloud powerhouse VMware.
A big chunk of Broadcom’s recent success comes from a spike in sales of AI accelerator chips designed for large-scale data centers, which are able to efficiently handle AI inference tasks. This is in contrast to the general-purpose GPUs from Nvidia that can be costlier when scaled up.
Today’s changes
(0.19%) $0.62
current price
$334.13
For the fiscal year ending last November, Broadcom saw its AI chip sales increase by 65%, reaching $20 billion. This segment now constitutes 31% of its total sales, compensating for slower growth in its other chip and software areas. Overall, revenue and earnings per share (EPS) grew by 24% and 40%, respectively.
Looking ahead, Broadcom anticipates continued growth in the AI sector as its other segments recover. Analysts project a 52% increase in sales and a 51% rise in adjusted EPS for fiscal 2026. This is impressive for a stock trading at a forward P/E ratio of 32.
IBM
IBM faced a tough decade with declining revenues until Arvind Krishna took the helm as CEO in 2020. Under his guidance, the company spun off its less adaptive managed infrastructure services division and focused on enhancing its hybrid cloud and AI segments.
International Business Machines
Today’s changes
(-1.98%) $-5.16
current price
$255.63
Rather than compete directly with major public cloud providers like Amazon, IBM utilized its acquisition of Red Hat in 2019 to offer more open-source applications that link on-premises private clouds and public cloud systems. This hybrid approach has appealed to large enterprises that hesitate to move all their data to the public cloud, allowing for greater flexibility, especially for those using multiple cloud services.
In fiscal 2025, IBM’s revenue and adjusted EPS grew by 8% and 12%. Looking forward, analysts suggest that in 2026, the company’s revenue and adjusted EPS may rise by 5% and 7%. Given its forward P/E ratio of 21, there seems to be significant growth potential ahead.
