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Big Tech has dominated investor portfolios with significant gains, but Broadcom (AVGO) has emerged as a standout performer in 2024. WestEnd Capital Management senior equity analyst Ali Mogharabi joins hosts Julie Hyman and Jared Blikre on Market Domination to discuss his outlook for the semiconductor company in the coming year.
Mogharabi explains that the artificial intelligence trade is shifting from training to inference capabilities, which will mean a stronger focus on determining "what to do with new data and how to interpret it." This transition requires more specialized chips, positioning Broadcom to capitalize on the trend.
Mogharabi points out that these chips will require increased network infrastructure to be effective, noting that Broadcom is "one of the main players on the network/connectivity side of it, too."
"Opportunities for Broadcom itself to generate revenues are going to be growing from around 15 to 20 billion currently to 60 to 90 billion through 2027," Mogharabi tells Yahoo Finance. "That represents enormous growth opportunities for these guys to take advantage of."
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This post was written by Angel Smith