Broadcom is rapidly rising, becoming the strongest dark horse in the artificial intelligence chip industry, surpassing the AI leader Nvidia.
Wall Street experts' latest investment outlook estimates that 'Broadcom, which surged 100% this year, is likely to surpass Nvidia next year.'
On the same day, the globally renowned investment firm Goldman Sachs significantly raised Broadcom's target price from $190 to $240, an increase of 26%.
Goldman Sachs expressed great confidence in Broadcom's performance growth prospects.
Public data shows that Broadcom's sales of artificial intelligence chips have had a compound annual growth rate of 117.46% over the past three years.
In fiscal years 2022 and 2023, its sales of artificial intelligence chips were $2.58 billion and $3.8 billion, respectively.
In many years before 2021, Broadcom's artificial intelligence chips accounted for less than 5% of revenue in the semiconductor business.
It wasn't until the release of the ChatGPT large model in 2022 that its artificial intelligence chip revenue share began to break through 10%, and this number is expected to soar to 35% by 2024.
Broadcom's recently released fourth quarter and full-year financial report shows that its AI-related revenue increased by 220% year-over-year for the entire fiscal year.
Since the announcement of the fourth quarter performance for fiscal year 2024, Broadcom's stock price has continued to rise strongly.
Especially two days after the financial report was released, the stock price surged nearly 40%, hitting a record high.
In 2025, Broadcom's revenue from artificial intelligence chips is expected to continue to maintain rapid growth, with optimistic data indicating a 65% growth rate in the first quarter.
However, another institution, BofA, expressed the opposite view, predicting that Broadcom will find it difficult to catch up to Nvidia immediately.
He stated that Nvidia's artificial intelligence chips still dominate the market, and there are potential risks for Broadcom in capturing market share from it.
