Technology companies are under scrutiny: shares in Nvidia, the world’s largest chipmaker, plunged by almost 10% on Tuesday. Investors are worried that artificial intelligence will not deliver the vast profits they seek. Broadcom, a maker of chips and software that announces its third-quarter results on Thursday, wants to defy the doubters. Broadcom has done well in the AI boom. Over the past year its market value has almost doubled to $711bn, making it the world’s eighth-largest technology firm. The company designs specialist AI chips for tech giants like Google, Meta and ByteDance.
Broadcom also sells software that helps businesses manage in-house data centres. Companies are increasingly wary about holding their sensitive data on “public clouds”, where anyone can buy capacity. VMware, a cloud-software firm, which Broadcom bought in 2023 for $69bn, could benefit as businesses invest in private IT infrastructure. Hock Tan, Broadcom’s long-time boss, will hope such possibilities convince the market that the firm’s growth prospects are strong.
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