Broadcom Stock Rises After Meta Hints Increasing Usage Of Its Custom-Designed MTIA Chips: Retail’s Extremely Bullish

Shares of Broadcom Inc. (AVGO) surged more than 4% in pre-market trade on Thursday after Meta Platforms Inc. (META) revealed that it is ramping up the use of its custom-designed chips.

During its fourth-quarter earnings call, Meta CFO Susan Li revealed that it will expand its use of MTIA chips – also known as Meta’s Training and Inference Accelerator.

Meta and Broadcom have co-designed the MTIA chips, and a ramp-up is positive for the San Jose, California-based semiconductor manufacturer.

Li said Meta is expanding its philosophy of pursuing cost efficiencies to chip usage by finetuning it for the company’s workloads.

"In 2024, we started deploying MTIA to our ranking and recommendation inference workloads for ads and organic content,” said Li.

“We expect to further ramp adoption of MTIA for these use cases throughout 2025 before extending our custom silicon efforts to training workloads for ranking and recommendations next year,” she added.

Retail sentiment on Stocktwits around the Broadcom stock remained in the ‘extremely bullish’ (87/100) territory, edging up from a day ago. Message volume also remained in the ‘extremely high’ zone.

Users were similarly bullish about Broadcom stock’s performance.

Broadcom’s share price has surged nearly 44% over the past six months, while its one-year returns have been far more stellar, with gains of nearly 71%.

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Also See: Broadcom Launches Quantum-Resistant Network Encryption, Enables Real-Time Ransomware Detection: Retail Stays Extremely Bullish