AI Silicon Chip Race Accelerates, Broadcom Leads
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 7h ago
0mins
Source: Benzinga
- Surging Market Demand: Counterpoint Research projects that AI server compute ASIC shipments among the top 10 hyperscalers will triple from 2024 to 2027, driven primarily by the expansion of Google's TPU infrastructure and AWS Trainium clusters, significantly enhancing the market share of related companies.
- Broadcom's Market Leadership: Counterpoint expects Broadcom to remain the leading design partner for AI server compute ASICs by 2027, holding approximately 60% market share despite competitive pressures from the Google-MediaTek alliance, showcasing its strong position in the industry.
- Market Structure Shift: As Meta and Microsoft accelerate their internal chip programs, the shipments of AI server compute ASICs are transitioning from a concentrated duopoly led by Google and AWS in 2024 to a more diversified landscape by 2027, reflecting hyperscalers' increasing reliance on custom silicon.
- Manufacturing Dominance: Counterpoint notes that Taiwan Semiconductor Manufacturing Company (TSMC) continues to dominate the manufacturing of AI server compute ASICs, accounting for nearly all wafer fabrication for the top 10 players, ensuring efficient production capabilities and technological advantages.
Analyst Views on AVGO
Wall Street analysts forecast AVGO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AVGO is 462.58 USD with a low forecast of 390.00 USD and a high forecast of 525.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
28 Analyst Rating
27 Buy
1 Hold
0 Sell
Strong Buy
Current: 324.850
Low
390.00
Averages
462.58
High
525.00
Current: 324.850
Low
390.00
Averages
462.58
High
525.00
About AVGO
Broadcom Inc. is a global technology firm that designs, develops, and supplies a range of semiconductors, enterprise software and security solutions. The Company operates through two segments: semiconductor solutions and infrastructure software. Its semiconductor solutions segment includes all of its product lines and intellectual property (IP) licensing. It provides a variety of radio frequency semiconductor devices, wireless connectivity solutions, custom touch controllers, and inductive charging solutions for mobile applications. Its infrastructure software segment includes its private and hybrid cloud, application development and delivery, software-defined edge, application networking and security, mainframe, distributed and cybersecurity solutions, and its FC SAN business. It provides a portfolio of software solutions that enable customers to plan, develop, automate, manage and secure applications across mainframe, distributed, mobile and cloud platforms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
