Stephen Yiu, portfolio supervisor of the Blue Whale Progress Fund, predicts Broadcom (NASDAQ:AVGO) will thrive in 2025 as the subsequent Nvidia’. As Massive Tech cuts dependency on a single provider for synthetic intelligence chips, Broadcom stands to realize immensely.Yiu identified that though corporations like Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Google (NASDAQ:GOOG), and Meta Platforms (NASDAQ:META) have invested closely in Nvidia’s (NVDA) graphics processing models, they’re now creating proprietary AI chips to diversify distributors.
“Broadcom will not be Nvidia, however we’d anticipate Broadcom to be the subsequent Nvidia when it comes to outperformance potential,” Yiu mentioned throughout Wednesday’s Professional Talks on CNBC, stressing Broadcom’s shut relationship with huge tech companies.Pushed by Broadcom’s AI income development of over 200% to $12.2 billion in 2024, its shares have surged upwards of 126% year-to-date and its market capitalization handed $1 trillion.
Underneath the path of CEO Hock Tan, the corporate is growing bespoke synthetic intelligence processors for 3 fundamental cloud computing customersidentified by analysts as Meta, Alphabet, and ByteDance. By 2027 every is deliberate to have a million AI chips in clusters.Nonetheless among the many prime 10 holdings of the Blue Whale Progress Fund, Broadcom exhibits hope for future enlargement within the evolving synthetic intelligence scene.
This text first appeared on GuruFocus.
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