Broadcom (AVGO) Projects Massive AI Chip Growth by 2027

7 days ago

Broadcom's (AVGO, Financial) CEO, Hock Tan, revealed that the demand for the company's AI chips is surging, with customers planning substantial investments in AI infrastructure over the next three to five years. By 2027, Broadcom's clients aim to deploy up to one million AI chips, potentially boosting the company's annual revenue by billions of dollars. This surge in demand has propelled Broadcom's market capitalization to over $1 trillion, joining an exclusive group of U.S. companies.

Despite the excitement, Tan remains composed, emphasizing the vast potential of generative AI. He noted that while the deployment of one million chips is significant, it may still fall short of achieving the ultimate goal of creating Artificial General Intelligence (AGI) by companies like OpenAI and Anthropic. Broadcom collaborates with tech giants such as Google, Meta, and ByteDance, and is reportedly working with OpenAI and Apple to develop AI server chips.

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