Broadcom Soars Most Since 2020 to Top $1 Trillion Valuation

Published On Dec 13, 2024, 9:43 AM

Broadcom Inc. has seen a substantial increase in its stock price, reaching a market valuation of over $1 trillion. The surge is largely attributed to expectations of increased demand for AI chips, with sales of AI products projected to grow by 65% in the upcoming fiscal quarter. Broadcom has also secured two major new customers in the data center sector and anticipates significant revenue growth from its AI-related business, predicting a market for AI components could be worth up to $90 billion by 2027. The stock rose by approximately 21% after earnings reports exceeded expectations and strong growth in both semiconductor and software divisions was announced, despite concerns about demand for non-AI products. Broadcom's diversified portfolio also includes essential components for apple devices, although the relationship with Apple may shift as the company develops in-house solutions.