The article from The Motley Fool predicts that Broadcom's custom AI chip business will benefit from DeepSeek's cost-efficient AI model, DeepSeek-V3. DeepSeek's model was trained with just $6 million, making it 20 to 50 times cheaper than OpenAI's model. This breakthrough could increase demand for Broadcom's custom AI processors, which are designed to reduce costs.
Broadcom's custom AI chips are already being used by three big hyperscale cloud companies, with two more in negotiations. The company sees the total addressable market for custom AI processors and networking chips increasing to $60 billion to $90 billion over the next three years.
As AI technology continues to advance, companies like Broadcom are well-positioned to benefit from the growing demand for custom AI chips. Investors looking to capitalize on the AI trend may want to consider companies like Broadcom, Palantir, and Qualcomm, which are all poised for growth in the AI space.
