Broadcom's Has An AI Edge - Analyst Highlights Accelerators and Networking Advances for 2024 Growth

Last week, the SOX and NASDAQ were up 3% while the S&P was up 2%, Piper Sandler analyst Harsh V. Kumar said that news flow was heavily centered around compute names following Nvidia Corp’s NVDA GTC event and the release of their latest Blackwell chip. 

The analyst noted that the company has already signed up large U.S.-based hyperscalers, numerous AI startups, and sovereigns to lead the early adoption of the chip. 

Also Read: Broadcom Rocks At AI Event: Here’s What Got These Analysts Most Excited

Nvidia also seeks to capitalize on inference opportunities by highlighting its NIM software offerings. 

Broadcom Inc AVGO held an analyst on custom accelerators and networking to highlight its latest products. 

The company gave insights into developments on the product, customer, and custom XPU sides of the business. 

The management announced a third customer for its custom XPU accelerator business. The customer is a sizeable U.S.-based hyperscaler, as per the analyst. As per Kumar, a vital benefit of the XPU is reduced power of up to 70% – 75% compared to merchant GPU.

Broadcom is well-positioned across networking and XPUs to benefit from generative AI growth, as per Kumar. 

For Broadcom, Kumar projected 2024 revenue and EPS of $49.97 billion and $46.35.

The stock gained 115% in the last 12 months. Investors can gain exposure to the stock via Pacer Funds Pacer Data And Digital Revolution ETF TRFK and Amplify ETF Trust Amplify Cybersecurity ETF HACK.

Price Action: AVGO shares closed lower by 0.14% at $1,351.58 on Monday.

Also Read: Broadcom’s VMware Overhaul Sparks Regulatory Scrutiny – What’s Going On?

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