Investors who owned stocks in the 2010s generally experienced some big gains. In fact, the SPDR S&P 500 (NYSE: SPY) total return for the decade was 250.5%. But there’s no question some big-name stocks did much better than others along the way.
Broadcom’s Big Decade
One of the market leaders of the past decade was semiconductor giant Broadcom Inc (NASDAQ: AVGO).
Broadcom's decade was as controversial as it was successful. The company’s huge growth was defined by major acquisitions and near acquisitions.
Avago Technologies went public in 2009, trading on the Nasdaq exchange under the ticker AVGO. In a blockbuster tech deal, Avago acquired Broadcom Corporation for $37 billion in May 2015. The combined company would maintain the AVGO ticker but would assume the name Broadcom.
In 2017 Broadcom made a massive $130 billion buyout bid for semiconductor company QUALCOMM, Inc. (NASDAQ: QCOM). After negotiations with the Qualcomm board of directors, U.S. President Donald Trump ultimately blocked the deal via executive order, citing national security concerns.
In the wake of the failed Qualcomm merger, Broadcom acquired software company CA Technologies for $18.9 billion in 2018. Broadcom’s expansion into software was initially met by mostly negative reactions from analysts and investors.
Avago shares started the 2010s trading at around $19. Within weeks of the beginning of the decade, the stock had dropped to $16.50, its low point of the 2010s. Avago stock made it as high as $37.99 in mid-2011, but failed to break out to new highs until late 2013. From that point, the stock took off like a rocket.
The stock broke the $100 mark in late 2014 just prior to the Broadcom buyout. It hit $200 in early 2017 prior to the failed Qualcomm bid.
2020 And Beyond
Broadcom shares hit $300 for the first time in 2019 and have made it as high as $331.58 in early 2020.
Though the stock has since pulled back to the $265 level, Broadcom has still been one of the best investments in the market during the past decade. In fact, $100 worth of Broadcom stock in 2010 would be worth about $1,670 today, assuming reinvested dividends.
Looking ahead, analysts expect another huge year for Broadcom in 2020. The average price target among the 29 analysts covering the stock is $360, suggesting 34.8% upside from current levels.