Broadcom Reaches $1 Trillion Valuation Amid AI Chip Growth

Published 1 days agoAVGO

Broadcom Reaches $1 Trillion Valuation Amid AI Chip Growth

Broadcom recently hit a market valuation of over $1 trillion, fueled by optimistic forecasts for growth in artificial intelligence demand. The company’s CEO, Hock Tan, highlighted a potential revenue opportunity ranging from $60 billion to $90 billion in AI by 2027, a significant leap from the current market size, according to Reuters.

In the fiscal year 2024, Broadcom's AI revenues saw a remarkable rise, growing by 220% to $12.2 billion. This surge can be attributed to increasing demand for AI chips and a noticeable shift by major technology firms from using Nvidia's processors, as reported by the Financial Times.

Broadcom is proactively expanding its AI-chip capabilities by securing contracts with major U.S. cloud entities like Google and Meta Platforms for custom AI chips. The company also continues to innovate with its 3.5D XDSiP technology, designed to improve semiconductor speeds and meet the heightened demand for generative AI infrastructure.

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