The $1t company you’ve never heard of
Nvidia Welcomes Broadcom to the $1 Trillion Club
On the back of a booming AI wave, Broadcom has officially joined the prestigious $1 trillion market cap club. This under-the-radar tech giant achieved the milestone yesterday after reporting stellar Q4 earnings.
Meet Broadcom
Broadcom is a major supplier of AI chips to Big Tech companies, operating somewhat like Nvidia, but without the same level of fame (for now). While the company has a presence in both hardware and software, its skyrocketing semiconductor business has driven its recent success.
Key Highlights:
- AI revenue soared 220%, reaching $12.2 billion this year.
- CEO Hock Tan projects the AI chip market to grow to $90 billion by 2027.
The Big Question: Will Broadcom Sustain This Growth?
Broadcom revealed it secured two major hyperscaler customers (companies operating large-scale data centers) and forecasted fiscal Q1 revenue of $14.6 billion, slightly exceeding expectations.
However, challenges loom:
- Broadcom could face customer losses if more tech giants, like its major client Apple, choose to produce AI chips in-house.
Broadcom’s Impact on Competitors
While Broadcom’s stock surged 24% yesterday, pushing it into the $1 trillion league, shares of Nvidia and AMD dropped. Analysts suggest concerns about losing market share to Broadcom may have spooked investors.
As the AI tide rises, only time will tell if Broadcom can maintain its momentum.
