This Chipmaker (You May Not Know About) Is Worth Over $1 Trillion

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The launch of ChatGPT has sparked a race among tech giants to build AI. And that race has fueled demand for the AI ​​chips needed to train and deploy AI models. As a result, Nvidia, the world’s leading AI company, has seen its order book balloon and its stock price explode. Since the beginning of the year, Nvidia’s stock has risen 167%, and today the company, which was once known for its gaming graphics cards, is worth more than $3 trillion.

But another company you may not have heard of is rising to tech giant status thanks to the AI ​​race. This is the chipmaker Broadcom, an American company founded in 1961 and based in California. Broadcom has a very diversified business, since it offers solutions for data centers, network solutions, cybersecurity software, and even connectivity chips for smartphones. However, if Broadcom's stock has recently exploded, it is thanks to chips for artificial intelligence.

A $1 trillion company

As CNBC reports, Broadcom recently said it is developing AI chips with three major customers. And each of those customers could deploy 1 million AI chips in network clusters by 2027. Broadcom CEO Hock Tan also said the AI ​​market could be worth $60 billion to $90 billion over the next three years. In addition to developing chips with its customers, Broadcom also provides connectivity solutions that can be used to connect them together.

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The company does not disclose who its customers are. But rumors suggest that in addition to existing customers, Broadcom could generate additional revenue through partnerships with Apple and OpenAI. “We believe that the opportunities that will be available to us over the next three years in the field of AI are considerable“, said the CEO of Broadcom.

In any case, the value of Broadcom shares has soared following this announcement. Since the beginning of the year, it has gained more than 100%. And Broadcom now has a market capitalization of more than $1 trillion. According to the website companiesmarketcap.com, Broadcom is today the ninth most valuable company in the world, behind Apple, Microsoft, Nvidia, Amazon, Alphabet, Saudi Aramco, Meta and Tesla. It also exceeds the market capitalizations of Taiwanese chipmaker TSMC and Berkshire Hathaway.

• The race for artificial intelligence, triggered by the launch of ChatGPT, has propelled Nvidia to the top of the world
• Broadcom, which also makes chips for AI, is experiencing a similar trajectory
• Recently, it indicated that it could generate tens of billions of dollars, thanks to orders from tech giants

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