Broadcom IncAVGO
▲ PositiveDemandrelevance
Broadcom sets a $230B AI revenue target for fiscal 2028, doubling its custom AI chip and networking sales goal.
Impact on assets 1
Artificial Intelligence▲ · 1 stocks
Broadcom IncTheme Impact 5
Off-coverage companies 1
GuruFocusPrivate± Mixed
relevance
Related news
▲
CLSA Says AI Chip Shortage Could Last Until 2030, Calls 2028 Peak Forecast 'Utterly Wrong'
CLSA's Bhavtosh Vajpayee said the AI semiconductor cycle will not peak in 2028, calling that expectation "utterly wrong" and projecting the current chip shortage will persist until roughly 2030. Speaking to CNBC on Wednesday, Vajpayee said demand for GPUs and custom AI chips currently exceeds supply by about 73%, and he expects upstream semiconductor and hardware companies to benefit as the shortage worsens alongside expanding AI infrastructure spending. He also noted that large semiconductor companies trade at lower valuation multiples than many other parts of the AI ecosystem. Vajpayee highlighted Meta's Muse as a notable recent development for making AI agent creation easier through simple language commands, and said similar advances should emerge in China, where companies including Alibaba are developing smaller AI models. He pointed to Apple as particularly important because smartphones already sit at the center of consumers' daily lives and could become the primary gateway for accessing AI services, while CLSA sees clearer opportunities in AI hardware suppliers than among model developers, where he said it remains too early to determine the eventual winners.
3impact 4
NVIDIA Commits $279 Billion to Supply as AI Demand Accelerates
NVIDIA ended the second quarter of fiscal 2027 with $279 billion in supply and capacity commitments, up from $119 billion in the first quarter, with most tied to memory and manufacturing facilities for current and future data center products. The company reported $96.22 billion in second-quarter fiscal 2027 revenues, up 106% year over year, while Data Center revenues surged 117% to $89.02 billion, and it guided third-quarter revenues to $108 billion, plus or minus 2%, implying 89.5% year-over-year growth. NVIDIA expects fiscal 2028 revenue growth of about 70%, though supply constraints could limit how quickly it meets demand, and it warns that changing demand could make the commitments difficult to reduce. Rivals are expanding as well: AMD's Data Center revenues rose 107% year over year to $6.7 billion in the second quarter of 2026, with Anthropic planning to deploy up to 2 gigawatts of MI450-series GPUs on the Helios rack-scale platform and Microsoft deploying Helios at scale on Azure, while Intel's second-quarter revenues rose 25% to $16.13 billion and its Data Center and AI revenues surged 59% to $6.26 billion. The Zacks Consensus Estimate for NVIDIA's fiscal 2027 revenues stands at $406.05 billion, an 88% year-over-year increase, and the stock trades at a forward price-to-earnings ratio of 17.11 versus the sector's average of 21.45.
Japan Stocks Poised to Catch Up With Global AI Rally as Yen Steadies
Japanese stocks look set to catch up with a global AI-led rally when trading resumes Thursday, with Nikkei 225 futures in Osaka trading about 1.4% above Friday's settlement of the underlying gauge after the Silver Week holiday. Chip-equipment makers Tokyo Electron and Advantest are expected to be among the biggest winners, according to Hu You, a senior research analyst at iFast Financial in Singapore, who also flagged chip package substrate maker Ibiden and memory maker Kioxia Holdings. The yen traded around 157.28 per dollar in Tokyo after a four-day losing streak, its longest since late August, keeping traders alert to intervention risk following the Bank of Japan's Friday rate hike and its signal that further tightening remains possible. The BOJ move, which disappointed yen traders for its lack of clearer guidance, also leaves bond traders facing a volatile reopen, with iFast's Hu You saying the hike sets a higher floor for short-term rates and is fundamentally negative for front-end JGB prices. The global AI trade has gathered steam on early signs of success for Meta Platforms' new AI agent and Alibaba Group Holding's unveiling of what it calls China's most powerful AI chip, though overnight weakness in US equities and rising oil prices may temper the optimism.