Broadcom, the fabless chipmaker, approached a buy point on Wednesday after news reports revealed that it’s designing an artificial-intelligence server chip for Apple. The Information reported that Apple is working with Broadcom to create a custom server processor for running AI applications in data centers.
The internal code-named Baltra AI chip is expected to be ready for mass production by 2026. Taiwan Semiconductor Manufacturing (TSM) will produce the chips for Apple, according to Reuters. This collaboration marks Broadcom’s entry into the high-profile project, as it already provides custom AI server chips for Alphabet’s Google and Facebook parent Meta Platforms.
Broadcom competes with Nvidia and Marvell Technology in the AI server chip market. The company’s stock rose 6.6% on Wednesday, closing at $183.20. Broadcom is currently in a double-bottom base with a buy point of $185.05, according to IBD MarketSurge charts.
The company is set to report its fiscal fourth-quarter results late Thursday and has been included on the IBD Tech Leaders list.
Source: https://www.investors.com/news/technology/broadcom-stock-nears-buy-point-on-apple-ai-server-chip-news