Broadcom Joins $1 Trillion Club Amid AI Boom, But Faces Future Challenges

Broadcom reached a $1 trillion market cap for the first time, driven by a 220% surge in AI chip revenue, as it capitalized on the growing demand for AI technology.

While it now stands alongside giants like Nvidia, Broadcom’s success is largely attributed to its semiconductor business, which helped boost its stock by 24%. CEO Hock Tan anticipates the AI chip market will reach $90 billion by 2027.

Despite strong growth and new customer wins, including large-scale data center clients, Broadcom faces the risk of losing business as tech giants like Apple increasingly develop their own AI chips.

Meanwhile, competitors Nvidia and AMD saw their shares drop, possibly due to concerns over Broadcom gaining market share.