BUSINESS-ECONOMY
The predicted increase in demand for Broadcom's artificial intelligence processors led to a first-ever leap to a one trillion-dollar market capitalisation for the tech firm. Broadcom is the semiconductor supplier to Apple and other major tech companies. The company predicts sales of AI devices will increase by 65 per cent, which is significantly higher than the 10 per cent growth in overall semiconductor sales. Additionally, by fiscal 2027, the chipmaker anticipated that the addressable market for data centre operators' AI components it produces might reach 90 billion dollars. The semiconductor company is aiming to cash on the AI investment frenzy, much like Nvidia. Chief executive officer Hock Tan announced his business has secured clients from the largest data centre operators, known as hyperscalers. On Friday, the stock price increased by as much as 21 per cent, marking its largest share-price surge since March 2020. The hope for AI has attracted investors, who have flocked to Broadcom's shares this year. Demand for processors and networking components drove AI sales growth of 220 per cent over the year, according to Tan. Consistent with projections, total sales for the period ending in January will come at 14.6 billion dollars. (With inputs from the agencies) A journalist, writing for the WION Business desk. Bringing you insightful business news with a touch of creativity and simplicity. Find me on Instagram as Zihvee, tr None
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