Broadcom (AVGO) Joins Trillion-Dollar Club with AI Chip Growth

Dec 16, 2024

Broadcom (AVGO, Financial) has become the third semiconductor company to surpass a $1 trillion market cap, following a notable stock surge of over 24%. This growth is driven by Broadcom's custom AI chips for cloud computing giants, potentially reducing reliance on NVIDIA's GPUs. Broadcom's 2024 fiscal year revenue reached $51.6 billion, up 44%, with AI and VMware as key growth engines. The company expects Q1 2025 revenue to grow by 22% to $14.6 billion. Major customers include Google and Meta, with ongoing collaborations with Apple and ByteDance. Broadcom predicts AI market revenue between $60 billion and $90 billion by 2027, challenging NVIDIA's dominance in the sector.

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