Broadcom's CEO Hock Tan believes the tech industry's AI spending spree will continue for at least the next several years, citing his Silicon Valley clients' plans for AI infrastructure investments spanning three to five years. This comes after Broadcom's stock surged following the announcement of a 220% jump in AI revenues, reaching a market value of over $1 trillion. Tan predicts tens of billions in additional annual revenue from AI chips by 2027.
Big Tech’s spending frenzy on artificial intelligence will continue until the end of the decade, according to the head of Broadcom , which has soared to a valuation of more than $1tn on growing investor excitement about its AI chips business. Hock Tan, Broadcom ’s chief executive, told the Financial Times his clients in Silicon Valley were drawing up AI infrastructure investment plans spanning “three to five years in a very big hurry”. “They are investing full-tilt,” he said.
” In 2018, Broadcom’s $142bn hostile takeover bid for rival chip company Qualcomm was blocked by then-US president Donald Trump in an unprecedented intervention. Tan has also been busy completing Broadcom’s integration of last year’s $69bn acquisition of cloud software company VMware. Nonetheless, he said he was “open to potential acquisitions” in either hardware or software: “We are in the considering mode, so to speak.
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