Etched Raises $500M to Compete with Nvidia in AI ASICs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Funding Scale: Etched raised $500 million in its latest funding round to enter the GPU market dominated by Nvidia, led by Stripes with participation from Peter Thiel, propelling the company's valuation to $5 billion.
- Product Advantage: The flagship product, Sohu, produced by TSMC using a 4nm process, is designed specifically for transformer AI models, making it more efficient than general-purpose GPUs and capable of handling AI models from Google, Meta, and others.
- Performance Comparison: A single Sohu server replaces 160 Nvidia H100 GPUs, offering a faster and cheaper solution that is expected to attract business leaders needing specialized chips, thereby transforming the market landscape.
- Team Background: The founding team includes Brian Loiler, who worked over 20 years at Nvidia, and David Munday from Google DeepMind, providing a strong technical foundation for the company's growth.
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 398.73 USD with a low forecast of 300.00 USD and a high forecast of 480.00 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.
30 Analyst Rating
28 Buy
2 Hold
0 Sell
Strong Buy
Current: 352.210
Low
300.00
Averages
398.73
High
480.00
Current: 352.210
Low
300.00
Averages
398.73
High
480.00
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.
