Broadcom stock soars as company touts 'massive' AI opportunity

Published On Dec 13, 2024, 4:00 PM

Broadcom's stock surged by over 24% after the company highlighted a substantial opportunity in the artificial intelligence sector during its quarterly earnings call. CEO Hock Tan stated that custom AI chips could yield $60-$90 billion in revenue over the next three years from three unnamed hyperscaler customers. Broadcom also revealed plans for additional partnerships, potentially with OpenAI and Apple. The AI market is projected to grow significantly, with Broadcom's AI chip sales up 150%, contrasting with a decline in non-AI chip sales.

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Broadcom's assertive growth strategies in AI technology and the current investment landscape indicate a strong potential for future revenue growth. The significant increase in AI chip revenue against the backdrop of a declining non-AI segment suggests that investors may benefit from a focus on AI technologies.

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