Semiconductor company last issued bonds in July, when it raised $5 billion to refinance loans taken on to pay for its $69 billion acquisition of VMware Inc.
Nvidia is an AI leader whose chips are still in high demand. Broadcom is tapping into a niche AI market.
Chip stocks rose Thursday on the back of Micron's AI demand outlook.
Super Micro Computer is following in the footsteps of Nvidia and Broadcom with a 10-for-1 stock split. Investing in Nvidia and Broadcom around the times of their respective splits has produced mixed results.
The explosive demand for semiconductors and microchips has grabbed news headlines and led the market higher over the past few years.
Broadcom targets a $150 billion AI semiconductor market with 30-40% annual growth, driving significant revenue potential. Fiscal 2024 AI revenues projected at $12 billion, growing 33% YoY, with $16 billion expected in 2025. Key AI customers include Google, Meta, and ByteDance, with potential collaboration from OpenAI further strengthening market position.
All three have great growth potential.
Earlier this month, semiconductor stalwart Broadcom Inc (NASDAQ:AVGO) shed by 10.4% after a dismal earnings report.
Thanks to an acquisition in 1998, Berkshire Hathaway became the owner of a specialty investment fund that now manages $602 million in assets. The asset managers of Buffett's secret portfolio have been net-sellers of stocks over the past two years.
Nvidia and Broadcom are two chip stocks that recently issued stock splits. Nvidia looks unstoppable after posting another quarter of strong growth despite increasing competition.
Both companies are flourishing as strong AI demand drove year-over-year revenue growth. Broadcom made a strategic acquisition last year to strengthen its AI offerings.
A $10,000 investment in Broadcom around the time of its IPO would now be worth close to $1 million. The company could be the next big AI winner through its custom chips and networking components.