Broadcom is reportedly on the verge of receiving a major boost, thanks to Meta’s efforts to build out the necessary hardware to power the metaverse.
Broadcom is a leading semiconductor maker, with its chips used in a wide array of industries, including networking. According to Reuters, J.P. Morgan analysts believe Meta is poised to become Broadcom’s next billion-dollar customer.
The deal will revolve around ASIC (application-specific integrated circuit) chips. Between Meta, Microsoft, and Alphabet, ASIC could be worth some $2 billion to $2.5 billion in revenue for Broadcom in 2022.
“We believe these wins are primarily at 5 nanometre and 3 nanometre and will be used to power Meta’s metaverse hardware architecture that it will deploy over the next few years,” analyst Harlan Sur said.
Meta, specifically, will become Broadcom’s next $1 billion-a-year customers over the course of the next several years.