"The global artificial intelligence (AI) market is estimated to grow from $279 billion in 2024 to surpass $1.8 trillion by 2030. Semiconductor players have been aggressively supplying advanced chips to build AI infrastructure, while many consumer companies are creating broad AI platforms. Broadcom and Meta Platforms exemplify these two sides of the AI story -- one powering the infrastructure with custom chips and networking, and the other deploying AI at scale across billions of users."
"Broadcom has emerged as a key player in AI infrastructure, with a diversified portfolio of custom AI accelerators, advanced networking solutions, and enterprise software. The company serves several hyperscale customers and large AI model developers, providing them with the custom AI chips and networking technologies required to build large-scale AI clusters. The numbers highlight the success of Broadcom's business model. In the third quarter of fiscal 2025 (ended Aug. 3), Broadcom reported revenue of $16 billion, up 22% on a year-over-year basis."
AI is creating powerful long-term investment opportunities as the global AI market is estimated to grow from $279 billion in 2024 to surpass $1.8 trillion by 2030. Semiconductor players are supplying advanced chips to build AI infrastructure while consumer companies develop broad AI platforms. Broadcom supplies custom AI accelerators, advanced networking solutions, and enterprise software to hyperscale customers and AI model developers, supporting large-scale AI clusters. Broadcom reported fiscal Q3 2025 revenue of $16 billion, up 22% year over year, with AI semiconductor sales rising 63% to $5.2 billion. Broadcom expects hyperscalers to deploy millions of AI clusters and has secured over $10 billion in AI rack orders, with shipping slated to start in 2026. Meta Platforms represents the demand side by deploying AI at scale across billions of users.
Read at The Motley Fool
Unable to calculate read time
Collection
[
|
...
]