Part 3/8:
Custom Silicon Development: A pivotal theme is the increasing emphasis on customized silicon, particularly by hyperscalers like Amazon and Microsoft, who are harnessing proprietary chips to enhance AI operations. Monier contrasted Broadcom's conservative growth guidance of 60% over three years against Nvidia's more tempered expectations, suggesting a potential shift in investor focus.
Software Growth and Pullbacks: Monier indicated a modest anticipated revenue growth from software applications in the back half of 2024. He also flagged the likelihood of market corrections; historical patterns suggest that 10% pullbacks are typical in extended bull markets.
Market Dynamics: Historical Context and Future Uncertainties