Chip market high isn't over says Broadcom CEO, with million-accelerator clusters on the horizon

Broadcom CEO Hock Tan has predicted that demand for AI clusters will continue for another three to five years as companies continue to battle with the resource- and power-intensive compute needs of AI.

Speaking with Jim Cramer in an interview on CNBC’s Mad Money, Tan outlined how customers plan to build increasingly larger AI clusters, doubling in size with each new generation of machines.

The prediction suggests a steady rise in demand for custom AI silicon and other advanced semiconductors, which Tan sees as beneficial for Broadcom.

Broadcom isn’t worried about the chip market

Tan explained that ongoing developments and advancements of large language models will mean that large-scale builds will be required annually in order to keep up with pace. As such, hyperscale AI clusters, which currently use 100,000 accelerators, may one day grow to include one million accelerators, believes Tan.

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