Home / Business and Economy / Broadcom Secures $10B in AI Infrastructure Orders, Expects Significant Growth
Broadcom Secures $10B in AI Infrastructure Orders, Expects Significant Growth
4 Sep
Summary
- Broadcom expects AI revenue growth to "improve significantly" by 2026
- Broadcom CEO Hock Tan committed to leading the company for at least 5 more years
- Broadcom helps design custom AI chips for hyperscale cloud customers
According to the news, Broadcom, a prominent chip designer, is poised to experience a substantial increase in its artificial intelligence (AI) revenue growth by 2026. This comes after the company secured over $10 billion in AI infrastructure orders from a new customer.
Broadcom's CEO, Hock Tan, who is 73 years old, has also committed to leading the company for at least another five years. This news was welcomed by investors, as Tan is widely credited with transforming Broadcom into one of the world's most valuable chip designers.
Broadcom has been one of the biggest beneficiaries of the generative AI boom, with hyperscale customers that own data centers looking for alternatives to pricier Nvidia chips. The company helps design custom AI chips, which can deliver niche performance gains that help break through bottlenecks in AI computing.
As the race to push model training and inference forward continues, Broadcom's custom offerings for cloud giants are well-positioned to challenge Nvidia's dominance in the AI semiconductor industry. The company has recently launched the Tomahawk Ultra networking chip and a next-generation Jericho networking chip to speed up AI compute, further solidifying its position in the market.
