Broadcom revenue growth may accelerate next year from ramping custom silicon projects (Meta, Amazon, OpenAI); compressed valuation at $1.7T market cap suggests a rally is possible if the trend continues.
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But one of the big underrated competitors to the traditional CPU market are ASICs, IP provided by companies like Broadcom, Marvell, now MediaTek and Alchip in Taiwan.
Similarly, Broadcom, also already quite large. Most recent quarter, 85, 86% growth. Now this revenue growth rate for Broadcom could accelerate next year, though, for AMD and Broadcom.
We'll see how this plays out, but especially for Broadcom as a lot of these custom silicon projects for Meta, for Amazon, for OpenAI start to ramp up. Keep this one on watch. Similar to Nvidia, it's already a huge business at $1.7 trillion market cap.
But as the valuation has gotten compressed, this is another one where if this trend continues, it's maybe just a matter of time before this one finally has a rally.
Whereas three, four years ago, it was all about the GPU, the CPU, and especially custom CPUs with IP supplied by companies like Broadcom.
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