STORY: Shares of Broadcom rose more than 5 percent Thursday morning after the company predicted over $100 billion in AI chip sales next year, signaling rapid share gains in the market dominated by Nvidia.
Big Tech's push to secure the vast computing power needed for artificial intelligence has lifted Broadcom in the data-center infrastructure race as it helps design custom processors that can serve as an alternative to Nvidia's costly chips.
Analysts say the company is seeing heavy demand from clients including Meta Platforms and Anthropic, with customer commitments equivalent to the power consumption needs of more than 8 million U.S. households.
:: Nvidia
That puts Broadcom closer to the scale of recent AI chip deals by Nvidia and AMD as the rise of custom processors increasingly threatens Nvidia's stronghold in the advanced data-center infrastructure market.
Both Broadcom and Nvidia, have seen their stocks decline so far this year amid investor concerns around whether heavy spending on AI will generate sufficient returns to justify lofty tech valuations.
:: Broadcom
CEO Hock Tan also assured investors the company was well-placed amid widespread supply shortages of memory chips and limited capacity at AI processor manufacturer TSMC.
