Broadcom's AI chip revenue triples as Applied Digital locks in $36B of capacity
What's the deal? Broadcom's AI semiconductor revenue more than tripled year over year last quarter, while data center operator Applied Digital secured $36 billion in contracted capacity deals with an investment-grade hyperscaler. Both are being pitched as AI investment alternatives to Palantir Technologies.
What do they do? Broadcom builds custom AI chips and networking technology, working with Alphabet, Meta PlatformsDealroom has a profile for this one. Try Dealroom →, and OpenAI. Applied Digital builds and operates data centers, with its Polaris Forge 1 campus in North Dakota already running.
Why now? Broadcom's management expects AI revenue growth to accelerate, and the company raised its long-term AI outlook. Applied Digital's $36 billion in contracted capacity gives it rare revenue visibility in a crowded data center market.
What's the endgame? Applied Digital spun off its cloud services into ChronoScaleDealroom has a profile for this one. Try Dealroom → to focus on infrastructure. Broadcom, meanwhile, is deepening its custom silicon partnerships with the biggest names in AI.
The signal: Investors are looking for AI exposure beyond the headline software names. The hardware and infrastructure layer — chips and data centers — is emerging as the next battleground for capital chasing the AI buildout.
Read more: thejoai.com
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