"Regardless of this year's stock market volatility, the explosive demand for semiconductors and microchips that has grabbed news headlines and led the market higher over the past few years remains. As the drive toward integrating artificial intelligence (AI) into our everyday lives progresses, a handful of mega-cap companies are capable of meeting that demand. While Nvidia Corp. ( NASDAQ: NVDA) may get the lion's share of attention, companies like Broadcom Inc. ( NASDAQ: AVGO) will also be playing a central role in supply."
"But its business sectors focusing on semiconductors and infrastructure software products have been major catalysts in its market cap topping $1 trillion. That places it among the top 10 publicly traded companies. Lately, Broadcom has been heavily emphasizing its advancements in optical connectivity solutions designed to support the growing demands of AI infrastructure. This includes developments in co-packaged optics (CPO), high-speed DSP and SerDes."
"Third-quarter financial results showed record revenue driven by continued strength in custom AI accelerators, networking, and the integration of VMware. It also provided an optimistic outlook for the fourth quarter. Broadcom subsequently revealed that it had secured over $10 billion in orders for AI infrastructure from OpenAI. Though shares of Broadcom have gained over 807.2% in the past five years, after retreating fractionally in the past month, 24/7 Wall St.'s analysis suggests there is still healthy upside for Broadcom before the end of the decade."
Broadcom has built a trillion-dollar market capitalization through semiconductor and infrastructure software businesses, placing the company among the top 10 public firms. The company emphasizes optical connectivity innovations — including co-packaged optics, high-speed DSP and SerDes, and PCIe Gen6 over optics — to meet rising AI-infrastructure demands. Recent quarterly results showed record revenue led by custom AI accelerators, networking, and VMware integration, and management issued an optimistic quarterly outlook. Broadcom disclosed more than $10 billion in AI infrastructure orders from OpenAI. Shares have surged substantially over recent years, including a 10-for-1 stock split announced on July 15, 2024. Analysts project continued upside through the decade.
Read at 24/7 Wall St.
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