Core Viewpoint - Broadcom is positioned to be the leading chip stock in the market next year, driven by the increasing demand for AI infrastructure and cloud computing solutions [1][2]. Group 1: Business Segments - Broadcom is a leader in data center networking, producing essential components like Ethernet switches and network interface cards, which are crucial for managing AI workloads [3]. - The company has expanded its infrastructure software business through acquisitions, with VMware being the largest acquisition, enhancing its cloud computing capabilities [4]. - Following the VMware acquisition, Broadcom has transitioned customers to a subscription model and is promoting its VMware Cloud Foundation platform for managing AI workloads [5]. Group 2: ASICs Opportunity - Broadcom's ASICs business presents significant growth potential, as these custom chips are more efficient for specific tasks compared to general-purpose chips [6]. - The company has collaborated with major clients like Alphabet to design tensor processing units, leading to increased interest in its ASIC solutions [7]. - A notable opportunity includes a $10 billion order from a potential customer, possibly Apple, for next year, alongside a projected $60 billion to $90 billion opportunity from three other major clients by fiscal 2027 [8]. Group 3: Major Contracts and Revenue Potential - Broadcom has secured a deal with OpenAI to supply 10 gigawatts of custom AI chips, valued at approximately $350 billion, to be fulfilled by the end of 2029 [9]. - This deal could translate to nearly $100 billion in annual chip sales, significantly boosting Broadcom's revenue [9]. Group 4: Valuation and Growth Prospects - Broadcom is currently trading at a forward P/E ratio of about 30 and a PEG ratio under 0.4, indicating it is undervalued given its growth prospects [10]. - The company is expected to experience strong growth next year, with explosive potential growth anticipated by fiscal 2027, likely leading to a significant stock rally [11].

Key Points Marvell enjoys significant revenue visibility with its 18 design wins and over 50 projects in development. The company is positioned to benefit from the transition of data center networks from copper to fiber optics. With revenue and profitability improving, the stock could see strong growth in the coming years. 10 stocks we like better than Marvell Technology › Artificial intelligence (AI) has been transforming the business landscape at an unprecedented rate. The market researchers at ...