Broadcom, Marvell Capitalize On Generative AI Demand With Custom ASIC Solutions
Portfolio Pulse from Surbhi Jain
Broadcom and Marvell are set to benefit significantly from the growing demand for custom ASIC solutions driven by generative AI. JPMorgan analyst Harlan Sur predicts the custom chip market will grow to $20-30 billion, with a 20% CAGR. Broadcom holds a dominant market share, while Marvell is rapidly gaining ground. Cloud giants like Google, Amazon, and Microsoft are increasingly opting for custom ASICs over off-the-shelf products, boosting demand for Broadcom and Marvell's solutions.
June 04, 2024 | 12:20 pm
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POSITIVE IMPACT
Amazon's adoption of custom ASIC solutions, including Marvell's 5nm Tranium chip, is expected to drive significant growth in AI capabilities and demand for custom chips.
Amazon's use of custom ASIC solutions will enhance its AI capabilities and drive demand for custom chips, benefiting companies like Marvell.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
ARM Holdings is expected to benefit from the increasing demand for custom ASIC solutions, as the complexity of chip design grows and the need for sophisticated design tools rises.
The increasing complexity of chip design and the demand for custom ASIC solutions will drive growth for ARM's design tools.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Broadcom is expected to see significant revenue growth from its custom ASIC solutions, driven by strong partnerships with Google and Meta. The company holds a dominant market share and is ramping up production of advanced AI chips.
Broadcom's dominant market share and strategic partnerships with major tech companies like Google and Meta position it well for significant revenue growth in the custom ASIC market.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Cadence Design Systems is poised to benefit from the growing demand for custom ASIC solutions, as the need for advanced design tools and software increases.
The rising complexity of chip design and the demand for custom ASIC solutions will drive growth for Cadence's advanced design tools and software.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Google's increasing reliance on custom ASIC solutions for AI compute accelerators is driving demand for Broadcom and Marvell's products, potentially enhancing Google's AI capabilities.
Google's shift towards custom ASIC solutions for AI accelerators will likely enhance its AI capabilities and drive demand for Broadcom and Marvell's products.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
Marvell is rapidly gaining market share in the custom ASIC market, with strategic wins from Amazon and Google. The company's AI revenues are projected to grow significantly in the coming years.
Marvell's strategic partnerships with Amazon and Google, along with projected growth in AI revenues, indicate a strong positive impact on the company's financial performance.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100
POSITIVE IMPACT
Microsoft's increasing use of custom ASIC solutions for AI compute accelerators is expected to drive demand for Broadcom and Marvell's products, enhancing Microsoft's AI capabilities.
Microsoft's shift towards custom ASIC solutions for AI accelerators will likely enhance its AI capabilities and drive demand for Broadcom and Marvell's products.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
Synopsys is expected to benefit from the rising demand for custom ASIC solutions, as the complexity of chip design grows and the need for sophisticated design software increases.
The increasing complexity of chip design and the demand for custom ASIC solutions will drive growth for Synopsys' design software.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50