Broadcom: Is the AI beneficiary attractive after the 30% correction? Here are the reasons!

Broadcom (AVGO) is one of the beneficiaries of the AI era. The company offers Ethernet controllers, switches, and routers as well as chips for servers and data centers. It is a leading provider of custom chips that are highly energy-efficient because they are used for specific tasks. The transition to general AI, reasoning models, and world foundation models increases the demand for computing power. To still achieve some cost efficiency, the need for custom AI chips will grow. Hyperscalers are building ever larger AI clusters that could include...