Semiconductor Values Strong: Broadcom as a Template
The semiconductor sector is currently showing strong development, with Broadcom playing a central role. The shares of the US company recently reached record highs, largely due to the growing interest in artificial intelligence (AI). This positive momentum could also strengthen interest in European chip companies.
Broadcom’s Role in the AI Market
Broadcom has begun delivering a new version of its switch chips for data centers to take a greater role in the booming AI market. The start of fiscal year 2025 has been very promising for Broadcom, with AI revenue of $4.1 billion in the first quarter, reflecting a 77% increase year-over-year. This development is mainly driven by massive investments from hyperscalers like Google and Meta in AI infrastructure.
Expectations for Quarterly Figures
The financial world is eagerly awaiting the release of Broadcom’s quarterly figures on June 5, 2025. Analysts expect $4.4 billion in revenue from AI semiconductors alone in the second quarter. Expectations are high after the first quarter already impressed with consolidated revenue of $14.9 billion and adjusted EBITDA of $10.1 billion.
Effects on European Chip Companies
The positive development of Broadcom could also strengthen interest in European chip companies like Infineon and STMicroelectronics. These companies also benefit from the demand for semiconductors, especially in the context of AI and other technology trends. The strong performance of US semiconductor companies could encourage investors to take a closer look at European companies, as they could also benefit from the global demand for advanced semiconductors.
Market Environment and Investment Decisions
The semiconductor sector is currently in high demand, as reflected in the share prices of companies like Micron, On Semiconductor, and Microchip Technology. Investors should consider current market trends and the future growth prospects of companies like Broadcom and their European counterparts. The decision to invest in these companies depends on individual investment strategies and risk tolerances.
In summary, Broadcom, with its strong position in the AI market and positive quarterly figures, provides a template for the entire semiconductor sector, which could also positively influence European companies.