Broadcom's AI Accelerator Business Is Booming, But the Stock Is Falling. Could This Be the Most Underrated AI Play Right Now?

The dawn of artificial intelligence (AI) in early 2023 has caused a paradigm shift in the technology landscape. The ability of these sophisticated algorithms to create original content -- including text, images, audio, and computer code -- promises to unleash a windfall of profits by increasing worker productivity and automating mundane and time-consuming tasks.The first wave of AI was characterized by the rapid adoption of graphics processing units (GPUs), which offer the flexibility and computational horsepower for a broad range of AI tasks. Unfortunately, these AI workhorse chips consume a significant amount of power.Users are now transitioning to the next phase of AI adoption, seeking more energy-efficient alternatives, and Broadcom (NASDAQ: AVGO) is profiting from this shift. The company's Application-Specific Integrated Circuits (ASICs) can be customized to a specific task, making them more cost-effective for those instances. The increasing adoption was clear in its financial report.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool