Broadcom Forecasts $100B AI Chip Sales, Backs Copper, Boosts Credo Shares
Broadcom predicted over $100 billion in AI chip revenue next year, lifting its shares by more than 5% as demand from Meta and Anthropic matched the power needs of eight million U.S. households. The company also endorsed direct-attach copper for rack-level AI data centers, boosting Credo shares 10% and pressuring optical vendors.
1. Broadcom's AI Chip Sales Outlook
Broadcom predicted over $100 billion in AI chip revenue next year, driving a more than 5% rise in its shares as heavy demand from Meta and Anthropic matched computing needs of eight million U.S. households. CEO Hock Tan highlighted strong custom processor orders and assured investors of resilient supply despite memory shortages.
2. Preference for Direct-Attach Copper
The company endorsed direct-attach copper for rack-level AI data-center interconnect, citing lower latency, reduced power consumption and cost advantages over co-packaged optics. This endorsement propelled Credo Technologies shares up over 10% while weighing on optical vendors Lumentum and Coherent.