Broadcom Shares Surge as It Adds More Custom AI Chip Customers. Can the Momentum in the Stock Continue?
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Broadcom (NASDAQ: AVGO) shares were skyrocketing higher after the company reported record revenue in its fiscal fourth quarter, ended Nov. 3, and said it was developing custom artificial intelligence (AI) chips for a number of large customers. The surge in share price brought the stock's gains up to more than 100% for the year to date. Let's take a closer look at the company's most recent results and commentary to see if the momentum in the stock can continue.More than its results, it was the commentary from Broadcom CEO Hock Tan that got investors excited and helped push the stock higher. He said each of its big-three "hyperscaler" customers (those owning massive data centers) was planning to deploy 1 million XPU (AI chip) clusters by 2027. Including XPUs and networking equipment, Broadcom's addressable market among these three customers could be between $60 billion to $90 billion in fiscal 2027 alone.Continue readingWeiter zum vollständigen Artikel bei MotleyFool
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