Despite these efforts, Broadcom is not a direct competitor to Nvidia Corp (NASDAQ: NVDA) in the field of GPUs for training advanced generative AI models like those used by OpenAI's GPT.
Citigroup's positive outlook on Broadcom stems from its potential to capitalize on the AI boom.
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Analysts predict Broadcom's AI infrastructure sales will double from $4 billion in FY23 (11% of FY23 sales) to over $8 billion in FY24 (17% of FY24 sales).
Broadcom also reported solid earnings for its fiscal fourth quarter last Thursday. Broadcom reported upbeat earnings for its fourth quarter and increased its quarterly dividend by 14% to $5.25.
Broadcom reported quarterly earnings of $11.06 per share, exceeding analyst expectations of $10.98, a 5.84% increase over earnings of $10.45 per share from last year.
The company reported quarterly sales of $9.29 billion, missing the Street's estimate of $9.41 billion. This reliable financial performance further bolstered investor confidence in the company.
Price Action: AVGO shares traded higher by 0.75% at $1,037.01 premarket on the last check Tuesday.
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