AI chipmakers expect massive demand

Broadcom Inc. is forecasting a massive expansion in demand for chips that power artificial intelligence — and the market, according to a Reuters report

The company hit $1 trillion on Friday, with its shares surging 21% after Chief Executive Hock Tan said artificial intelligence could deliver a revenue opportunity of $60 billion to $90 billion in 2027, more than four times the current size of the market. The company also forecast higher-than-estimated first-quarter revenue on Thursday.

Broadcom could capture as much as $50 billion in AI sales from the total 2027 opportunity based on the 70% market share Broadcom estimates in 2024, TD Cowen analysts told Reuters, but they cautioned that calculating the company’s share is difficult because the serviceable market could include processors sold by companies like Nvidia.

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