Broadcom (AVGO) Stock Surges with AI Chip Development Plans

Dec 16, 2024

Last week, Broadcom (AVGO, Financial) experienced a significant stock price increase of over 24%, reaching an all-time high and surpassing a market capitalization of $1 trillion. On Monday, the stock rose over 3% in pre-market trading, priced at $232.15.

The surge follows Broadcom's announcement of its collaboration with three major cloud clients to develop custom AI chips. The company anticipates each client will deploy one million AI chips by 2027. Additionally, during an earnings call, CEO Hock Tan projected that the custom AI chip business could generate $60 billion to $90 billion in revenue by 2027.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

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