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Author: Admin | 2025-04-28
Unlock stock picks and a broker-level newsfeed that powers Wall Street. Upgrade Now In This Article: Facebook parent Meta Platforms Inc (NASDAQ: FB) looks to use Broadcom Inc's (NASDAQ: AVGO) custom chips to build its metaverse hardware, becoming the chipmaker's next billion-dollar ASIC customer, J.P. Morgan analysts said. The analysts saw application-specific integrated circuit chips drive approximately $2 billion to $2.5 billion in revenue for Broadcom in 2022, aided by its deals with Meta and partnerships with Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) and Microsoft Corp (NASDAQ: MSFT). Analyst Harlan Sur believed the wins were primarily at 5-nm and 3-nm and will power Meta's metaverse hardware architecture that it will deploy over the next few years. "Near-term ASIC program pipeline is strong as we believe Broadcom will be ramping Meta/Facebook and Microsoft ASICs this year," Sur added. Sur saw Meta emerge as Broadcom's next $1 billion-a-year ASIC customer over the next three to four years after Google. Broadcom and Google have co-developed Google's custom chip used for machine learning tasks since 2016, and JPM estimates the chips to be worth over $1.3 billion in 2022. Price Action: AVGO shares traded higher by 0.11% at $583.92 on the last check Tuesday. Latest Ratings for FB Date Firm Action From To Mar 2022 Deutsche Bank Initiates Coverage On Buy Mar 2022 Piper Sandler Maintains Neutral Mar 2022 Morgan Stanley Maintains Overweight View More Analyst Ratings for FB View the Latest Analyst Ratings See more from Benzinga Immersion Accuses Meta For Alleged Infringement
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