Broadcom CEO Hock Tan quells rumors of an Intel acquisition. The company has its hands full designing AI chips.
Broadcom has been regularly linked to Intel in recent months. The rumors stemmed from the turbulent situation at the chipmaker. But Broadcom has no interest in a takeover, CEO Hock Tan made clear in an interview with Financial Times. Broadcom has “its hands” full” designing AI chip technology, Tan said.
Like any technology company, Broadcom is trying to fully capitalize on the AI hype. According to Tan, companies are going all-in on AI and will keep investing “until their money runs out or shareholders put a stop to it. Broadcom is marketing itself as the most interesting alternative to Nvidia. With Apple, Broadcom has already caught a big fish.
Club of 1 trillion
Broadcom is having a good year. The company announced last week that its AI revenues increased 220 percent in one year, to $12.2 billion. Tan expects to add tens of billions more by 2027.
Investors rewarded Broadcom by giving the company’s shares a 24 percent push, pushing its market value past the $1 trillion mark for the first time. Broadcom joins a select club of companies that includes Apple, Microsoft, Google, Amazon and Nvidia.
Although Tan did not rule out acquisitions in the interview, there are no plans to make an attempt at Intel. In doing so, the CEO says he learned from the failed acquisition of Qualcomm in 2018. “I only close a deal when someone comes to ask me for something. Since Qualcomm, I have learned one thing: no hostile offers.” That same Qualcomm was also linked to Intel, but backed out.
He who laughs last
Broadcom did not make itself popular, to say the least, by acquiring VMware. Both VMware’s portfolio and pricing were lumped together to appease the very largest customers. Smaller customers, however, were left with higher rates and imposed bundles. By the end of 2024, though, it will be Broadcom and Tan laughing in their fists.
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