Broadcom Inc.'s massive rally after last week's earnings report is reminiscent of when Nvidia Corp. shares first started to take off back in 2023. The chipmaker now needs to prove it can follow through to become another giant of the artificial intelligence era.

Broadcom shares have soared 38% in the two trading days since it reported results, pushing the company's market capitalization to nearly $1.2 trillion. At the heart of the rally is Broadcom's prediction that the addressable market for AI components it designs for data center operators will be as big as $90 billion by fiscal 2027. But there's a lot to be done to turn that opportunity into reality.