Meta will become Broadcom’s next billion-dollar customer: JP Morgan

Facebook parent Meta Platforms Inc will use Broadcom Inc’s custom chips to build its metaverse hardware, becoming the chipmaker’s next billion-dollar ASIC customer, analysts at JP Morgan said on Tuesday.

ASIC (application-specific integrated circuit) chips will drive $2 billion to $2.5 billion in revenue for Broadcom this year, helped by its deals with Meta and partnerships with Alphabet and Microsoft, the analysts said.

“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.