At Extreme Investor Network, we pride ourselves on providing cutting-edge and insightful information for our readers to stay ahead of the curve in the investing world. Today, we’re excited to share with you some exclusive analysis on a potential winner in the realm of big chip contracts.
According to JPMorgan analyst Harlan Sur, Broadcom is poised to secure a major chip contract from Google that could propel its shares to rally by another 20%. Sur speculates that Broadcom recently won a contract with Alphabet for its next-gen AI application-specific integrated circuit (ASIC) accelerator chips, which are expected to ramp up by 2026 or 2027. This strategic move could lead to significant revenue growth for Broadcom, with Sur predicting that the Google TPU program alone could drive over $10 billion in revenue for the company next year.
Sur also highlighted Broadcom’s strong position in the AI semiconductor market, noting that the company is the second biggest AI semiconductor supplier after Nvidia and the market share leader in cutting-edge customer chip design. Additionally, Broadcom’s partnership with Meta Platforms for its upcoming third generation of accelerator chips further solidifies its position as a key player in the industry.
Looking ahead, Sur foresees Broadcom benefiting from the increasing demand for custom chip designs among major cloud titans and original equipment manufacturers. These trends are expected to drive significant revenue growth for the company, with projected AI revenues reaching $14 billion to $15 billion next year.
With Broadcom’s shares already rallying 25% this year and a $1,700 price target set by JPMorgan, investors have the opportunity to capitalize on Broadcom’s growth potential in the semiconductor market. Stay tuned to Extreme Investor Network for more exclusive insights and analysis on the latest investment opportunities.