This incredibly cheap artificial intelligence (s) chips wants to become another Broadcom

Broadcom is currently the main player in the AI processor market, but will soon receive a new competitor soon.
This competitor recently announced his intention to re -enter the Data Center Chip market, and he just took a step to ensure that it could make a tooth.
Other catalysts to which this company sit, along with cheap evaluation, make it an attractive purchase.
10 shares we like more than Qualcomm ›

Broadcom became one of the leading artificial intelligence (AI) semiconductor market players for their experience specific integrated programs (ASICS), which are custom processors to perform specific tasks.

The demand for these optional processors has quickly improved due to their ability to solve AI workloads while maintaining costs. As a result, several cloud hypercallers tap Broadcom optional chips and network development components to reduce operating costs when AI training and conclusions programs are operating.

This explains why the growth of Broadcom lately has been great. In addition, the huge income of $ 60 to $ 90 billion from $ 90 billion shows that it is at the beginning of a strong growth curve. Not surprising, even Qualcomm (Nasdaq: qcom) He wants this profitable opportunity and he has just made a step that could help you make your teeth in an optional AI chip market.

Image Source: Getty Images.

Qualcomm has just announced that it is planning to purchase the British Chip Company AlphaWave Semi for $ 2.4 billion to “continue to speed up and provide the main Development of Qualcomm into data centers. In turn, it will increase the calculation performance and reduce energy consumption.

Qualcomm believes that AlphaWave “products make up the main infrastructure that enables a new generation of services in many large growth programs, including data centers, AI, data network and data storage.” Last month, Luskinės announced that it is planned to re -enter the data center market. It is reported that the company is developing an optional AI chip platform using its Oryon Central processing unit (CPU) and Hexagon nerve processing unit (NPU) processors, which they say are capable enough to satisfy the workloads in the data centers.

The latest acquisition is another piece of puzzle, as the Qualcomm entrusts to the Data Center -oriented chip platform. The company has already announced that it is cooperating with Saudi Arabia, supported by AI Venture Humain to create AI data centers in that country, indicating that Qualcomm can empathize with the door and eventually feel its presence in the huge AI processor market.

Importantly, there is space for another player in this market, which is currently dominated by Broadcom, with an approximately 70 percent. Marvell technology controls the rest of the market. So, if Qualcomm can create the most advanced product, it can become the third player here. This could eventually give your business a great impetus, taking into account the option of the final market offered.

Currently, Qualcomm receives income from the sales of chips, which falls into three product lines – phones, cars and internet of things (IOT). PG distribution benefits all these segments. This explains why the Qualcomm’s highest line in the second quarter of the Fiskal 2025 jumped 15% a year to $ 10.8 billion, and the adjusted revenue increased by 17% a year.

AI application in these three markets should grow healthy. For example, AI adoption in the car market can grow at 37% annual level over the next decade, and generative AI is expected to increase by 78% to 2028 if Qualcomm is able to add another growth engine in the form of data centers, it is surprising that it will grow in the long run.

That’s why buying Qualcomm shares at the moment may seem a smart thing because of only 15 times traded.

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Chauhan has no position in any of the said shares. The Motley fool is a position and recommends Qualcomm. The Motley fool recommends Broadcom and Marvell technology. The Motley fool has a disclosure policy.

This incredibly cheap artificial intelligence (ai) chips wants to become another Broadcom initially The Motley fool

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