Broadcom CEO Hock Tan has predicted that his hyperscale semiconductor customers will continue to build AI clusters for another three to five years, with each generation of machines doubling in size.
Broadcom CEO Hock Tan sits down with Jim Cramer
Tan spoke with Jim Cramer of CNBC's Mad Money on Tuesday and was asked to explain the latest developments for Broadcom stock. The share price fell sharply after its third-quarter results were felt by some to indicate that its chips were out of whack as enthusiasm for AI eased. It rebounded a week later, after other market signals indicated that demand for custom AI silicon could be strong.
Tan liked that argument and told Cramer that he is aware of hyperscaler roadmaps that suggest a three-to-five-year plan "to build out these large clusters" that allow the development of new large language models.
The Broadcom executive said these builds could be annual, and each will require two or three times the computing power of its predecessors.
