Semiconductor giant Broadcom is aggressively pursuing a share of the lucrative AI chip market, following Nvidia’s lead. With a strong focus on AI and chip research, the company aims to generate $11 billion in revenue from its AI connected chip business by fiscal 2024. Morningstar analysts and Wall Street share the view that Broadcom is well-positioned to benefit from the growing AI investment. The company’s recent acquisitions and partnerships, including with Google and Meta Platforms, have boosted investor optimism and diversified its revenue streams.
Broadcom’s stock has risen significantly over the past year, with a recent announcement of a 10-for-1 stock split expected to fuel further investor enthusiasm. While Nvidia remains a dominant player in the AI chip market, Broadcom’s custom AI chips pose a competitive challenge and offer cost-effective options for tech giants with AI workloads. Analysts see Broadcom as a strong contender in the AI game, along with its software portfolio and custom ASIC business.
As competition intensifies, Nvidia CEO Jensen Huang acknowledges the threat posed by Broadcom and other startups, emphasizing the need for continued innovation to stay ahead. Despite Nvidia’s current lead, Broadcom’s strategic moves and bold play in AI have ignited interest among investors and analysts, setting the stage for a potential showdown in the AI chip market.
Overall, Broadcom’s aggressive approach to expanding its presence in AI demonstrates the growing importance of the technology in the semiconductor industry. With a multi-pronged strategy that includes acquisitions, custom chip offerings, and software business expansion, Broadcom is positioning itself as a formidable force in the AI ecosystem. The upcoming AI and Big Data Exhibition in Amsterdam, California, and London presents an opportunity to learn more about the latest trends and developments in AI and big data from industry leaders.
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https://www.artificialintelligence-news.com/2024/06/21/broadcom-ai-surge-challenges-nvidia-dominance/