Broadcom CEO Optimistic About AI's Impact on Revenue Despite Slowing Sales Growth
Broadcom, a chip supplier for tech giants like Apple, expects the rapid expansion of artificial intelligence computing to help offset its worst sales growth slowdown since 2020. Revenue from networking semiconductors used to support AI systems currently accounts for 15% of the company's total chip sales, and that portion is expected to grow to over 25% by fiscal 2024. Despite the slowdown, Broadcom's CEO remains optimistic about the growth potential of AI and expects spending on computer networks to double to support AI services. The company's recent acquisition of VMware for over $60 billion is also expected to contribute to future growth.
