Move over, Nvidia: Fund manager likes 'overlooked' chipmaker with billions in AI chip sales

According to Clare Pleydell-Bouverie, a portfolio manager at Liontrust Asset Management, Broadcom is often overlooked but is significant in the semiconductor industry for several reasons. Firstly, it is the second-largest manufacturer of semiconductors industry-wide. Secondly, Broadcom has a leading position in segments like custom ASICs (Application-Specific Integrated Circuits). Lastly, Broadcom is emerging as a leader in the networking chips domain, with its best-in-class semiconductors powering the ethernet network. Additionally, Broadcom posted over a billion in revenue from AI chips, showing its presence in the artificial intelligence sector as well.

Broadcom is often overlooked as a key player in the AI chip market, with Nvidia typically taking the spotlight as the poster child for AI chips. However, Broadcom has a strong position in the market and is the second-largest manufacturer of semiconductors industry-wide. In fact, Broadcom posted over a billion dollars in revenue from AI chips. The company has a leading position in segments like custom ASICs (Application-Specific Integrated Circuits) and is also emerging as a leader in the networking chips domain with its best-in-class semiconductors powering the ethernet network. While Nvidia has a forward multiple of 45, Broadcom is currently trading at around 30 times forward earnings.