Today, Broadcom Inc (NASDAQ: AVGO) is getting attention from JPMorgan analysts who believe it is preparing to start its 3nm AI accelerator custom chip programs.

An investment bank predicts that the company will release its AI TPU ASIC with Google (TPU v6) and Meta (MTIA TPU) before the end of this year, and production will increase until 2025.

According to research, Google and Meta are expected to bring in over $9 billion in revenue for Broadcom from AI ASIC chips this year, an increase of nearly 2.5 times from 2023.

This news comes after Broadcom noted artificial intelligence trends when reporting better-than-expected financial results for the first quarter.

JPMorgan anticipates Meta Platforms becoming a significant customer for Broadcom in the AI ASIC market, potentially contributing billions each year starting in 2025.

The bank also believes that Broadcom, headquartered in San Jose, California, could earn up to $12 billion in revenue from AI semiconductor deliveries in 2024.

JPMorgan's analysts are positive about the demand for Broadcom's solutions, including PCIe Gen5/Gen6 switching products like Jericho 3 and Tomahawk 5, fueled by the increasing focus on artificial intelligence.

Previously, JPMorgan labeled Broadcom as the leading AI company after Nvidia and sees the potential for Broadcom's stock to rise by 15% to $1,550.