Broadcom is likely to be another company after Nvidia that benefits from the need for AI infrastructure

On June 1, Broadcom, the world's leading semiconductor company for wired and wireless communications, released its financial report for the second fiscal quarter of 2023 ending April 30. The financial report shows that Broadcom’s Q2 revenue reached 8.733 billion US dollars, an increase of 8% year-on-year, exceeding market expectations of 8.72 billion US dollars. Among them, the chip business revenue was US$6.81 billion, exceeding market expectations, an increase of 9% year-on-year; the infrastructure software business increased by 3% to US$1.93 billion.

Under the AI boom, the demand for AI chips from a large number of companies will double the company’s AI-related revenue. It is expected that AI-related revenue will increase to approximately US$7.5 billion in the next fiscal year, and AI chip revenue will soon exceed the company’s total revenue. 25% of. Broadcom's revenue is expected to reach about $8.85 billion in the third fiscal quarter, up 5% year-on-year.

Recently, as Apple and Broadcom have reached a multi-billion dollar agreement, Google has increased its orders with Broadcom. If Broadcom can meet revenue expectations, it will surpass Intel and AMD and become the world's second largest chip supplier.

Broadcom's ASIC chips are continuing to receive orders from major customers, including Alphabet, Google's parent company. Lansheng Technology believes that Meta will become Broadcom's next ASIC chip customer with an annual scale of US$1 billion in the next two years.

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