Broadcom’s AI Ambitions: A Deep Dive into Its Custom Chip Dominance

While Broadcom shares have recently taken a breather, the company is solidifying its position as a critical infrastructure provider in the artificial intelligence revolution. The focus for investors should shift from short-term price movements to assessing the durability of the company’s lead in the burgeoning market for custom AI silicon.

The foundation of Broadcom’s AI story is a massive and growing order backlog. The company currently holds over $73 billion in AI-related orders slated for delivery within the next 18 months. Of this total, approximately $53 billion is attributed directly to custom accelerator chips. This demand is part of a consolidated order book worth $162 billion, indicating that nearly half of Broadcom’s Read more...