In a word to purchasers Tuesday, analysts at JPMorgan mentioned Broadcom (NASDAQ:) has just lately received follow-on/next-gen 3nm AI TPU ASIC wins at META and GOOGL.
The agency believes that Broadcom is on schedule to launch its 3nm AI accelerator (TPU) customized chip (ASIC) applications with Google (NASDAQ:) (TPU v6) and Meta (NASDAQ:) (MTIA TPU) in the course of this yr, ramping manufacturing within the second half of this yr and thru 2025.
“Total, we estimate that Google and Meta mixed will drive $9B+ in AI ASIC chip revenues for Broadcom this yr (Google ~$8B+ and Meta round $500M-$1B), up nearly 2.5x over CY23,” wrote analysts.
“Extra importantly, as we mentioned again in 2022, we consider that Meta stays on observe to change into Broadcom’s subsequent multi-billion greenback per yr AI ASIC buyer doubtlessly beginning in CY25,” the financial institution added.
Total, analysts see $10 billion to $12 billion in whole AI semiconductor shipments this yr for AVGO, with the potential for constructive EPS revisions because the yr unfolds. That is pushed by its third AI ASIC buyer ramp (which analysts consider is Bytedance/TikTok) this yr, sturdy AI-driven demand for the workforce’s Tomahawk 5 and Jericho 3 switching/routing chipsets, and robust demand for its PCIe Gen5/Gen6 switching options.