Broadcom: This Is the Biggest Risk the Stock Faces

Broadcom (NASDAQ: AVGO) has become one of the leading players in the artificial intelligence (AI) infrastructure hardware race by leveraging its strength as a custom chip partner. The company built its reputation supplying networking gear to data centers, but its real growth engine today is with application-specific integrated circuits, or ASICs. These are custom AI chips that large hyperscalers (companies that own massive data centers) are starting to turn to help reduce costs when training large language models (LLMs) or running inference.Unlike graphics processing units (GPUs), these chips are preprogrammed for specific tasks before they are built. This can lead to better performance and efficiency for the tasks for which they were designed, but they lack to ability to be reprogrammed, and thus are a lot less flexible.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool