Broadcom Wins Big, But AI Infrastructure Is ‘Real Winner’ Of Meta Deal, Says Daniel Newman

Meta Platform Inc.‘s newly expanded multi-year partnership with Broadcom Inc. to develop custom 2nm AI chips is sending ripples through the tech sector. Still, an industry expert is arguing that the true victor is the broader artificial intelligence (AI) infrastructure market.

While Broadcom shares climbed over 3% in overnight trading following Tuesday’s announcement, Futurum Group CEO Daniel Newman was quick to highlight the overarching industry implications. “$AVGO wins big in this $META deal but the infrastructure buildout is the real winner,” Newman posted on X.

Highlighting Meta’s aggressive multi-vendor hardware strategy, Newman pointed out that the tech giant is actively building with Nvidia Corp., Advanced Micro Devices Inc., ARM Holdings PLC, and Alphabet Inc..

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“This cycle is bigger, it’s different and it’s not zero sum,” he added, noting that the immense demand for compute capacity means multiple suppliers can thrive…