💡 Broadcom: Generative AI as a growth engine! 🚀💻
Shares of tech giant Broadcom $AVGO see strong growth of more than 17 %thanks to record results and "massive" opportunity in artificial intelligence. The company reports sharp growth in profits and revenue related to generative AI, proving that the tech revolution is in full swing.
📊 What's behind this growth?
Q4 results:
Net profit: $4.32 billion (+23% YoY).
AI revenue: A jump of 220 % to $12.2 billion.
Total revenue: USD 14.05 billion, almost in line with analysts' expectations.
Semiconductor Solutions Division:
Growth of 12 % to $8.23 billion.
High-end chips for AI (called XPUs) play a critical role in the development of data centers and cloud services.
Broadcom is currently working with three large customers who plan to have 2027 to deploy 1 million AI chips in network clusters.
Infrastructure Software Division:
Revenues of $5.82 billion, nearly triple compared to last year.
The company's acquisitions also made a significant contribution VMware valued at USD 69 billion.
Future opportunities:
CEO Hock Tan estimates that the market potential for AI chips and networking components will reach up to USD 90 billion by 2027..
Broadcom plans further innovation in AI infrastructure and expects steady growth.
💰 More positive news!
Rising dividend. 11 % to 59 cents per share.
Steady Growth: Demand for generative AI and its infrastructure solutions will be long term.
🌍 Why is generative AI key?
The technology enables the interconnection of thousands of AI chips through Ethernet networking components and supports massive data center growth. Broadcom is one of the major players in this field, positioning it as a leader in the technology revolution.
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