Broadcom joins Trillion Dollar Club

It's the BATMMAAN! New trillion dollar company, New acronym. Built over a long time with lots of cost cutting and acquisitions (VMware, CA Technologies) and with a ticker symbol a throwback to another past deal, Broadcom joins a club so exclusive it only got created a few years ago. Since Apple broke that incredible valuation ceiling, others have been joining at a steady pace. It's such a reflection of the importance and optimistic potential of our new technological age, the speed and impact of this value creation - look at the names. Who may be next? And can any non tech companies make it there? Or all all companies so tech heavy there is no longer such a thing?

You’ve heard of FAGMA (Facebook, Apple, Google, Microsoft, Amazon). But have you heard of BATMMAAN? B is for Broadcom! They are not hurting, even as VMware customers are jumping ship after price increases. Broadcom’s AI revenue jumped 220% in the last year, pushing there market cap through the $1 trillion milestone!

AI fever strikes again. Broadcom's market cap crossed the $1 trillion threshold on Friday - making it only the second chip company to reach that milestone after Nvidia first crossed it last year. The reason? Broadcom's normally conservative CEO Hock Tan gave a rather far-out AI spending projection that gave investors a new reason to buy - even for a stock already up more than 60% this year. WSJ Heard on the Street https://lnkd.in/gaZQ_gGi

Now that Broadcom is in the trillion-dollar-market-cap club, we humbly submit that the "Magnificent 7" is no more. Enter the era of "BATMMAAN." Though not a household name in the same way that Apple, Tesla, or Microsoft is, Broadcom has quickly become a favorite of investors this year as it benefits from booming demand for generative-AI infrastructure. Shares of Broadcom soared this morning after the semiconductor company reported that its AI revenue had jumped 220% in the last year. https://lnkd.in/eAk8rnh3

Broadcom becomes ninth US company to achieve $1 trillion market cap. Broadcom stock surged 21% on Friday after CEO Hock Tan gave bullish guidance. Hock Tan said on earnings call that custom XPU market could reach $90 billion in three years. https://lnkd.in/dBCbqFsf

Broadcom hits $1 trillion marketcap for the first time. 🔥 Broadcom is the 3rd Semiconductor company to achieve $1 trillion marketcap after Nvidia and TSMC.

🟢Broadcom (AVGO) shares soared as chipmaker forecasts “massive” AI growth. Key highlights include: • Earnings Per Share (EPS): Adjusted EPS of $1.42 beat the expected $1.38. • Revenue: $14.05 billion, slightly below the $14.09 billion forecast, but up 51% YoY. • AI Revenue Growth: Artificial intelligence revenue surged 220% for the year, reaching $12.2 billion, driven by demand for generative AI infrastructure. CEO Hock Tan revealed Broadcom is collaborating with three major cloud providers to develop custom AI chips. These customers are expected to deploy 1 million AI chips each by 2027. 🤯The market for AI chips and networking parts could reach $60–$90 billion by then. Broadcom’s semiconductor solutions revenue grew 12%, while its infrastructure software division saw a dramatic increase to $5.82 billion, bolstered by the VMware acquisition. 🙏For fiscal 2025, Broadcom announced an 11% dividend increase, reinforcing confidence in its growth trajectory.

The AI spending frenzy looks like it still has a ways to go. Chipmaker Broadcom said it expects 65% growth in AI product sales this quarter and that the potential market for AI components that it designs for data centers may reach $90 billion by fiscal 2027. Investors piled into the stock in early trading, offsetting the blow from yesterday’s news that Apple—one of its biggest customers—plans to replace Broadcom’s wireless chip with homegrown tech, code-named Proxima. Source: Bloomberg and Wall Street Journal #AI #broadcom #chipmaker

Apple's ambitious plan to create in-house components for its devices will include switching to a homegrown chip for Bluetooth and Wi-Fi connections starting next year, a move that will replace some parts currently provided by Broadcom. The chip, code-named Proxima, has been in development for several years and is now slated to go into the first products in 2025, according to people familiar with the matter. Like Apple’s other in-house chips, Proxima will be produced by partner TSMC. The transition is separate from Apple’s highly anticipated shift from Qualcomm Inc. cellular modems but the two parts will eventually work together. Apple’s goal is to develop an end-to-end wireless approach that is tightly integrated with its other components and more energy-efficient, said the people, who asked not to be identified because the initiative hasn’t been announced. https://lnkd.in/g7xGH-Qc