Nvidia Faces Competition as Broadcom's AI Revenue Set to Reach $50 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Market Dominance: Nvidia's GPUs have become the primary chips for AI workloads, with revenue reaching $57 billion last quarter, solidifying its leadership in the global market, although it faces competitive pressure from custom AI ASICs.
- Broadcom's Growth Potential: Broadcom's partnership with Alphabet has led to a massive $21 billion order for TPUs, with AI revenue projected to grow from $20 billion last fiscal year to over $50 billion this year, indicating strong market demand and profitability.
- TSMC's Advantages: Taiwan Semiconductor Manufacturing's long-standing relationship with Broadcom allows it to provide advanced packaging techniques, with AI chip demand expected to grow at a mid-40% compound annual growth rate, further solidifying its dominance in the semiconductor industry.
- Pricing Power Enhancement: As the only large-scale manufacturer of advanced chips, TSMC is expected to continue raising service prices in the coming years, enhancing its profitability and market competitiveness.
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: 354.610
Low
300.00
Averages
398.73
High
480.00
Current: 354.610
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.
