This chip stock just won a big Google contract and is carving out its niche in AI

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Investment Strategy,Stock Markets,Broadcom Inc

This likely winner of a big chip contract from Google could see shares rally another 20% from here, according to JPMorgan.

Analyst Harlan Sur speculates that Broadcom recently won a contract with Alphabet for its next-gen AI application-specific integrated circuit, or ASIC, accelerator chips, which he expects to ramp up by 2026 or 2027. "Just as importantly, we believe that Broadcom's custom chip business continues to see accelerating orders from Google for its advanced AI processor chip called TPU, and we believe that the Google TPU program will drive $8B+ in revenues to Broadcom this year ...

mountain Shares this year Looking ahead, Sur expects Broadcom to benefit from its partnership with Meta Platforms as it readies to launch its third generation of accelerator chips later this year. Combined, these projects could yield $11 billion to $12 billion in AI revenue in 2024 and $14 billion to $15 billion in revenue next year.

 

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