Broadcom(US:AVGO) Di Yi Cai Jing·2025-06-10 23:35Core Viewpoint - The demand for custom AI chips is surging among large tech companies due to the supply constraints and high prices of Nvidia's AI chips, leading to a significant increase in Broadcom's stock price and market capitalization [1][2]. Company Performance - Broadcom's stock price has surged over 70% in the past two months, with its market value surpassing $1 trillion, positioning it among the top companies in the U.S. stock market [1]. - The latest financial report indicates that revenue from AI processing chips and related network chips is expected to reach $5.1 billion this quarter, marking a year-on-year growth of approximately 60% and accounting for about one-third of the company's total revenue [2]. Market Trends - The custom AI chip market is projected to grow significantly, with Morgan Stanley estimating it will reach approximately $30 billion by 2027, nearly tripling from $12 billion last year [2]. - Major tech companies, including Google and Meta Platforms, are increasingly adopting custom chips to meet their growing AI computing needs [2]. Competitive Landscape - Broadcom faces increasing competition in the custom AI chip market from U.S. chip manufacturers like Marvell and Taiwan's MediaTek, which are accelerating their efforts in this space [4]. - The overall AI chip market is expected to grow at an annual rate of 23%, potentially reaching nearly $500 billion by 2030, indicating a broader market opportunity beyond just custom chips [4]. Investment Outlook - Broadcom's expected price-to-earnings ratio is currently at 33.6 times, reflecting a premium of over 20% compared to the Philadelphia Semiconductor Index and 13% higher than Nvidia, indicating high investor expectations [5]. - Despite the optimistic outlook, there are concerns that Broadcom's stock may face short-term corrections due to already high market expectations [5].