Broadcom Powers Solidigm's High-Capacity SSDs, A Key Driver for AI and Data-Intensive Growth

On Thursday, NAND flash memory solutions provider Solidigm announced a multi-year extension of its deal with Broadcom Inc AVGO on the use of high-capacity solid-state drive (SSD) controllers to support artificial intelligence (AI) and data-intensive workloads.

NAND flash memory solution is a storage technology employing non-volatile memory that stores data even when power is off. It caters to devices like SSDs, USB drives, memory cards, and smartphones.

Also Read: Wipro Q3 Earnings: 24.5% Profit Jump, IT Services Margins Hit 12-Quarter High, Boosts Interim Dividend Payout to 70%

Solidigm provides high-capacity storage for AI, and Broadcom's custom controllers have been a critical component of Solidigm SSDs for over a decade.

With over 120 million Solidigm SSDs shipped featuring Broadcom controllers, the partnership between the two companies has continued through key industry SSD milestones.

In 2024, Broadcom joined Taiwan Semiconductor Manufacturing Co TSM and Nvidia Corp NVDA in the trillion-dollar market cap club.

Goldman Sachs analyst Toshiya Hari flagged Broadcom as positioned alongside Nvidia, backed by the AI Semiconductor business, with an acceleration in Networking.

Needham's N. Quinn Bolton projected upside from the unit growth of XPUs, both general-purpose GPUs and hyperscaler custom ASICs.

Broadcom Stock Prediction For 2025

Broadcom’s revenue growth in FY24 was 43.99%, reflecting the influence of various factors including the macroeconomic environment, demand for its products and services, and its position relative to competitors. This growth is a critical indicator for investors assessing the company’s future prospects.

Some macro factors that could impact the company's performance in the next year include higher interest rates, progress on reeling in inflation and labor market strength. The Fed's benchmark rate is currently at 4.33%, while PPI recently came in at 0.2%, growing 2.3% from last year. The unemployment rate was most recently reported as 4.1%.

An investor should pay attention to economic conditions to decide whether they think the macro environment is positive or negative for Broadcom stock. For real time economic data and breaking market updates, check out Benzinga Pro. Try it for free.

How does this stack up against Broadcom's peers?

Investors may also want to analyze a stock in comparison to companies with similar products or in similar industries. Broadcom operates in the Information Technology sector. The stock has experienced average annual growth of 66.07% compared to the 13.37% average of its peer companies. This is above the broader sector movement of Broadcom.

Broadcom stock surged 92% in the last 12 months. Investors can gain exposure to the stock through Vanguard Total Stock Market ETF VTI and Vanguard S&P 500 ETF VOO.

Price Actions: AVGO stock traded higher by 2.11% at $245.35 at the last check on Friday.

Also Read:

• Intel Stock Gains On Speculative Buyout Report, Details Remain Unclear

Photo by Ken Wolter via Shutterstock