Broadcom's Has An AI Edge - Analyst Highlights Accelerators and Networking Advances for 2024 Growth
Portfolio Pulse from Anusuya Lahiri
Piper Sandler analyst Harsh V. Kumar highlighted Broadcom's (AVGO) advancements in custom accelerators and networking, positioning it for growth in generative AI for 2024. Nvidia (NVDA) also gained attention with its Blackwell chip and NIM software, aiming at AI startups and hyperscalers. Broadcom announced a third major U.S. hyperscaler customer for its XPU accelerators, promising significant power savings. Kumar projects Broadcom's 2024 revenue and EPS at $49.97 billion and $46.35, respectively. AVGO shares saw a minor decline, while exposure to Broadcom can also be gained through Pacer Data And Digital Revolution ETF (TRFK) and Amplify Cybersecurity ETF (HACK).
March 25, 2024 | 8:18 pm
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POSITIVE IMPACT
Broadcom's focus on custom accelerators and networking for AI growth, along with a new major hyperscaler customer for its XPU accelerators, positions it positively for 2024.
The announcement of a third major hyperscaler customer and the projected revenue and EPS growth for 2024 indicate strong business momentum and market confidence in Broadcom's AI and networking capabilities.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Amplify Cybersecurity ETF, which includes Broadcom, could see benefits from Broadcom's advancements in AI and networking, attracting investor interest.
Given Broadcom's role in cybersecurity through its AI and networking advancements, HACK, which includes Broadcom, may attract more investor interest due to Broadcom's positive growth outlook.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
Nvidia's focus on AI with its Blackwell chip and NIM software, targeting AI startups and hyperscalers, positions it as a key player in the AI market.
Nvidia's strategic focus on AI through its latest chip and software offerings, along with its engagement with hyperscalers and AI startups, underscores its strong positioning in the rapidly growing AI market.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 80
POSITIVE IMPACT
Pacer Data And Digital Revolution ETF offers exposure to Broadcom, which is positioned for growth in the AI sector, potentially benefiting TRFK investors.
As Broadcom is included in TRFK's holdings, the company's positive outlook and growth in the AI sector could lead to increased investor interest and potential gains for TRFK.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 60