AI Infrastructure Spending Fuels Growth for AMD and Broadcom
Advanced Micro Devices (NASDAQ: AMD) and Broadcom (NASDAQ: AVGO) are positioned for potential growth exceeding 50% as demand for AI infrastructure skyrockets. The five largest hyperscalers are anticipated to invest $700 billion in data center capacity in 2023, presenting significant opportunities for these semiconductor companies.
AMD reported $34.6 billion in revenue last year, with a 50% gross margin, and aims for $175 billion by 2030. Its surge is driven by the shift in AI chip supply towards its offerings. Meanwhile, Broadcom could generate over $100 billion in custom ASIC revenue by fiscal 2027 and aims for a projected $180 billion in AI sales by 2028, having reported $20 billion in AI revenue in fiscal 2025. Both companies’ stocks are poised for substantial appreciation as they capture this evolving market.
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