Broadcom's (AVGO, Financial) recent fiscal 2024 results showcased its AI technology prowess, causing NVIDIA's (NVDA) stock to dip nearly 7%, hitting a low since October 18. Broadcom's business spans semiconductor technology and infrastructure software, with net revenue reaching $51.6 billion and a gross margin of 76.5% in 2024. Its AI revenue soared to $12.2 billion, a 220% increase, highlighting its competitive edge in the AI era.
Broadcom, the largest network chip manufacturer, offers solutions like the Tomahawk 5 Ethernet switch chip, enhancing AI cluster data scheduling. Its AI custom chip business dominates 70% of a $17.5 billion market, with plans for a next-gen XPU in 2025. However, Broadcom's ASIC ecosystem is less comprehensive than NVIDIA's CUDA, limiting broader application.
Despite challenges, including a narrower customer base and slower iteration compared to NVIDIA, Broadcom remains a key player in AI development, providing robust solutions in networking and semiconductor technology.
