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On June 5, Broadcom CEO Hock Tan announced that the company's strategic focus has shifted from mergers and acquisitions to the artificial intelligence sector, as AI demonstrates stronger growth potential. Tan has transformed Broadcom into a chip industry giant through a series of acquisitions, but now he believes the surge in AI revenue has reduced the appeal of external deals. He stated that it is difficult to find acquisition targets that can match the growth potential of AI, and that acquisitions pose disruptions to both the company and its customers. Tan pointed out that there is strong market demand for AI infrastructure, and Broadcom has actively entered the AI market, selling network chips and custom accelerators used for developing and running AI models. He projects that by fiscal year 2027, the AI business will generate over $100 billion in revenue for Broadcom.
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