Broadcom Soars into the Trillion-Dollar Club with a 24% Stock Surge Amid AI Demand
Broadcom has made history by becoming the eighth US tech company to surpass a $1 trillion market capitalization. This monumental achievement was triggered by a record 24% stock surge on December 13, 2024. The driving forces behind this historic milestone were the explosive growth in demand for artificial intelligence chips and robust fourth-quarter earnings.
The company reported an impressive AI revenue of $12.2 billion for fiscal 2024, marking a 220% increase year-over-year. CEO Hock Tan announced that Broadcom had secured two major new hyperscaler customers for its custom AI chips. These chips are favored by tech giants such as Meta, Alphabet, and ByteDance for their AI workloads.
Broadcom’s custom AI accelerators, known as XPUs, are giving stiff competition to Nvidia’s GPUs in the rapidly expanding AI infrastructure market. The company projects that the addressable market for AI components could reach a staggering $90 billion by fiscal 2027. This positions Broadcom as a major beneficiary of the ongoing AI spending boom across the technology industry.
Source: CNBC