JPM says Meta will become Broadcom's next billion-dollar customer

31/5/2022 4:06:00 PM

JPM says Meta will become Broadcom's next billion-dollar customer

JPM says Meta will become Broadcom's next billion-dollar customer

Facebook parent Meta Platforms Inc will use Broadcom Inc's custom chips to build its metaverse hardware, becoming the chipmaker's next billion-dollar ASIC customer, analysts at J.P. Morgan said on Tuesday.ASIC (application-specific integrated circuit) chips will drive $2 billion to $2.5 billion in revenue

Facebook parent Meta Platforms Inc will use Broadcom Inc's custom chips to build its metaverse hardware, becoming the chipmaker's next billion-dollar ASIC customer, analysts at J.P. Morgan said on Tuesday.ASIC (application-specific integrated circuit) chips will drive $2 billion to $2.5 billion in revenue for Broadcom this year, helped by its deals with Meta and partnerships with Alphabet and Microsoft, the analysts said.

"We believe these wins are primarily at 5 nanometre and 3 nanometre and will be used to power Meta's metaverse hardware architecture that it will deploy over the next few years," analyst Harlan Sur said.Meta is investing heavily in the metaverse - a virtual space where people interact, work and play - by adding new features to hardware devices that serve as access points to the virtual world.

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LinkedIn Facebook parent Meta Platforms Inc will use Broadcom Inc's custom chips to build its metaverse hardware, becoming the chipmaker's next billion-dollar ASIC customer, analysts at J.LinkedIn Japanese auto companies are likely to post record profits this year as they raise vehicle prices and cut costs to mitigate the hit from soaring inflation, J.LinkedIn MEXICO CITY: A Mexican court ruling that indefinitely suspended construction of President Andres Manuel Lopez Obrador's flagship"Mayan Train" rail project over environmental concerns was welcomed by activists on Monday (May 30).Hock Tan, CEO of Broadcom, speaks on the floor of the New York Stock Exchange shortly before the opening bell in New York, US, on Feb 12, 2018.

P. Morgan said on Tuesday. Morgan analysts said on Tuesday. ASIC (application-specific integrated circuit) chips will drive $2 billion to $2. The legal dispute is centered on the 121km "section 5" of the project, connecting the resort cities of Cancun and Tulum in Quintana Roo state, where construction was initially suspended in April over a lack of environmental permits.5 billion in revenue for Broadcom this year, helped by its deals with Meta and partnerships with Alphabet and Microsoft, the analysts said.88) in fiscal 2022. "We believe these wins are primarily at 5 nanometre and 3 nanometre and will be used to power Meta's metaverse hardware architecture that it will deploy over the next few years," analyst Harlan Sur said. For Tan, now 70, the deal would be the culmination of a string of acquisitions that has helped him turn Broadcom into a technology conglomerate worth $225 billion, along the way building a reputation as an astute dealmaker and ruthless cost-cutter.

Meta is investing heavily in the metaverse - a virtual space where people interact, work and play - by adding new features to hardware devices that serve as access points to the virtual world. The brokerage also upgraded Japanese auto industry's bellwether, Toyota Motor Corp, to"overweight" from"neutral", citing its production recovery, price positioning, among other things, amid concerns that inflation could eat into the company's earnings.. Sur added that Meta will emerge as Broadcom's next $1 billion-a-year ASIC customer over the next three to four years after Google. ASICs are designed to perform hyper-specific tasks, including in AI and machine learning, efficiently. Besides high commodity prices, global auto production has also suffered from semiconductor shortages and China's COVID-19 lockdowns, with car sales in China, Europe and the United States remaining depressed compared with a year earlier. Broadcom and Google have co-developed Google's custom chip used for machine learnings tasks since 2016 and the brokerage estimates this to be worth over $1. Nonetheless, the ruling is a setback for Lopez Obrador, who has pledged to complete the railway by the end of 2023 and says the railway has created 105,000 jobs.3 billion in 2022.5 million units, with Japanese OEMs global production at 24. VMware said yes.

Meta is developing a range of hardware products for the metaverse that include smart glasses and virtual reality headsets, and has even opened its first physical store where shoppers can try out these devices and other gadgets. "Near-term ASIC program pipeline is strong as we believe Broadcom will be ramping Meta/Facebook and Microsoft ASICs this year," Sur added. ($1=127. Broadcom's semiconductor solutions business, which makes custom chips, contributed more than 70 per cent to the company's nearly $27.5 billion revenue in 2021. Source: Reuters . He wrote that Tan "is committed to cultivating a shared culture of innovation.