QV Alert – Broadcom (AVGO) tops $1T Market Value

Acquisitive semiconductor giant, Broadcom, has an incredible chart. In 15 years the share price has risen 171 times.

Apple (NASDAQ:AAPL) is turning up the heat in the AI arms race, teaming up with Broadcom (NASDAQ:AVGO) to develop its first-ever server chip designed specifically for AI. Dubbed Baltra, the chip is expected to hit mass production by 2026 and will use Taiwan Semiconductor’s cutting-edge N3P process. This isn’t just a hardware play it’s Apple’s bid to cut reliance on Nvidia’s (NASDAQ:NVDA) pricey processors while giving its AI ambitions a major boost. The stakes? Big. Broadcom shares shot up 5pc on the news, while Apple’s stock edged higher as investors took note of this strategic power move.

Broadcom isn’t just along for the ride; it’s bringing its networking tech to the table, critical for handling the intense computational demands of AI. This partnership could transform Apple’s AI capabilities, supercharging products like Apple Intelligence the company’s generative AI initiative. And it’s not just about catching up; Apple wants in on the growing $45bn custom chip market, a space Broadcom and Marvell (NASDAQ:MRVL) are already battling over. With Broadcom shares already up 60pc in 2024, this deal looks like a win-win for both companies.

The big picture? Apple’s silicon team is proving it can go toe-to-toe with the industry heavyweights. From the M-series chips that took Macs to the next level to this latest push into AI server hardware, Apple’s making it clear it’s not content to sit on the sidelines. Investors are watching closely as this partnership positions Apple and Broadcom to lead in AI innovation, potentially reshaping the competitive landscape in the tech sector.

Gurufocus, 11 December 2024

Apple also has a great chart.

What is clear is that Apple’s pace of innovation is not slackening. The company’s future looks as exciting as ever.

Share Recommendations (16 December 2024)

Broadcom AVGO

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