Bank of America picks the next member of the stock market’s “trillionaires club”

Only a handful of US companies — all of them tech titans that dominate the S&P 500 — can say they’re worth a trillion dollars. Another lesser-known member of the sector may soon join their ranks, according to Bank of America.

Broadcom, the Silicon Valley chipmaker, has the potential to join the “trillionaires club,” according to BofA analysts, who consider it a “top AI pick” alongside Nvidia. At a market cap approaching $800 billion, it’s about $200 billion shy of joining the likes of Microsoft, Meta, and Apple. While Nvidia has led the AI-fueled chip boom, demand is so high that its rising tide is lifting most boats across the industry.

Broadcom has been one such beneficiary: its stock price has doubled in the past year, riding the boom in AI-linked demand. The company reported better-than-expected earnings on Wednesday, sending its stock up about 13% on Thursday morning. 

Following in the footsteps of its bigger peer, Nvidia, management also announced a 10:1 stock split, which will bring down the sticker price of individual shares and make it easier for smaller investors to buy in.