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Key Facts on Chipmakers
Nvidia (NASDAQ: NVDA) and Broadcom (NASDAQ: AVGO) became the first two chipmakers to achieve a market cap of $1 trillion within the last two years. As of 2023, Nvidia is valued at approximately $4.3 trillion, while Broadcom is at $1.8 trillion. The surge in their valuations is attributed to the rapid growth in the artificial intelligence (AI) market, with Nvidia’s data center GPUs and Broadcom’s networking chips playing crucial roles in this expansion.
Currently, AMD (NASDAQ: AMD), with a market cap of about $350 billion, is being watched closely as a potential third entrant to the trillion-dollar club. AMD’s data center business generated 47% of its revenue in the latest quarter, alongside a notable year-over-year growth of 122% in the data center segment.
Analysts predict a compound annual growth rate (CAGR) of 34% for AMD’s revenue from 2024 to 2027, which could position its market cap close to $2.5 trillion over the next decade if growth expectations are met.
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