“`html
Broadcom and Microsoft See Strong Growth in AI and Cloud Sectors
Broadcom recently reported a 63% year-over-year increase in AI-related product revenue, driven by robust demand for AI-compute infrastructure. At a Goldman Sachs technology conference, CEO Hock Tan highlighted the company’s limited competition in advanced chips and networking components, leading to high profit margins. Analysts project Broadcom’s free cash flow to grow at an annualized rate of 37%, with a current total of $25 billion.
Meanwhile, Microsoft has seen its cloud revenue grow 26% year over year, reaching $49 billion, with Azure revenue surging 40% in the last quarter. CEO Satya Nadella noted that Microsoft is establishing a significant presence in the cloud and AI sectors, with analysts expecting free cash flow to increase at an annualized rate of 23%. Microsoft currently holds $392 billion in performance obligations, indicating strong future revenue realization.
“`
