Broadcom At The Crossroads Between Merchant And Custom Silicon
Broadcom, Tuesday, June 10th, 2025
After three relatively short years of explosive growth thanks to the GenAI boom, AI is driving half of systems revenues worldwide already. And so it stands to reason that the custom ASIC design business and the AI-related networking businesses will eventually come to dominate the semiconductor businesses of Broadcom.
In the second quarter of fiscal 2025 ended in early May, the share of AI-related semiconductors rose above 50 percent of sales for the second time in a row for Broadcom, and it is now reasonable to wonder when it might break above 75 percent given the focus on high-end networking and the increasing use of Ethernet switching for AI workloads - soon not just for the scale out network linking cluster nodes but also for the scale up networking linking XPUs.