"Broadcom's most recent quarter showed AI chip revenue of $8.4 billion, up 106% year over year, above the company's forecast. CEO Hock Tan said: 'Our AI revenue growth is accelerating, and we expect AI semiconductor revenue to be $10.7 billion in Q2.'"
"Cramer's call is essentially a toll road argument: Meta is building the highway, but Broadcom collects the toll. If you believe hyperscalers will keep spending aggressively on custom silicon through 2027, look seriously at Broadcom."
Broadcom's market cap has surpassed Meta's, driven by a 4.2% rally and strong AI chip revenue growth. Meta's substantial investment in AI infrastructure, with a capex guidance of $115 to $135 billion by 2026, directly benefits suppliers like Broadcom. Broadcom reported $8.4 billion in AI chip revenue, a 106% increase year over year, and aims for $10.7 billion in Q2. Analysts are bullish on Broadcom, with a consensus price target of $473, while Meta faces high costs and debt as it builds its infrastructure.
Read at 24/7 Wall St.
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