Key Points
Broadcom (NASDAQ: AVGO) has seen its shares decline approximately 20% from December highs, presenting a potential buying opportunity for investors. The company is well-positioned to capitalize on the growing artificial intelligence (AI) infrastructure market, projected to surge from $500 billion to $1.4 trillion by 2030, according to Cathie Wood.
Broadcom leads in networking components and custom AI application-specific integrated circuits (ASICs), crucial for data management and AI workload distribution. Notably, the company facilitated Alphabet’s tensor processing units (TPUs), and Anthropic has ordered $21 billion worth to deploy via Google Cloud. Citigroup analysts estimate that Broadcom’s AI revenue could rise from $20 billion to $100 billion over the next two years.
In the last fiscal year, Broadcom generated $63.9 billion in total revenue, indicating significant growth potential as it continues to expand its footprint in AI technologies.
