JP Morgan says Meta to use Broadcom’s custom chips and turn into billion-dollar customer

• Meta to use Broadcom’s 5nm and 3nm chips for its metaverse

• Broadcom has been developing custom chips for Google’s machine learning

Facebook’s parent company Meta Platforms Inc (NASDAQ: FB), could become Broadcom Inc’s (NASDAQ: AVGO) next billion-dollar, as the social media company may use the chipmaker’s custom semiconductors to build its metaverse hardware, J.P. Morgan analysts said on Tuesday.

The financial institution said the chipmaker would generate $2 billion to $2.5 billion in revenue from ASIC (application-specific integrated circuit) chips this year, helped by its deals with Meta and partnerships with Alphabet (NASDAQ: GOOGL) and Microsoft (NASDAQ: MSFT).