Broadcom shares rise 21, market value hits 1 trillion on AI enthusiasm
Company expects 60 bln to 90 bln AI revenue opportunity in 2027
Marvell shares rise about 9, Nvidia and AMD down 3

Dec 13 Reuters Broadcom is predicting a massive expansion in demand for chips that power AI and the market, for now, is buying it all the way.

The company39;s valuation hit 1 trillion on Friday as its shares surged 21 after CEO Hock Tan said AI could present a 60 billion to 90 billion revenue opportunity in 2027, more than four times the current size of the market. Broadcom also forecast firstquarter revenue above estimates on Thursday.

Several analysts said it was tough to estimate the market39;s growth and Broadcom39;s potential share, with TD Cowen noting the prediction is difficult to provedisprove, but is huge.

Big Tech39;s push to diversify beyond Nvidia39;s pricey and supplyconstrained AI processors has been a windfall for Broadcom, which makes custom chips for major cloud companies.

Investors have also favored chipmakers that are already benefiting from the massive data centers being built by the likes of Microsoft and Meta amid worries about the payoff from AI investments for the wider tech industry.

Broadcom CEO Tan said on Thursday the company has won two major hyperscaler customers, after it brought in 12.2 billion in AI revenue for fiscal 2024. That represented a major chunk of his estimated total serviceable market of 15 billion to 20 billion.

Of the total 2027…