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Key Points
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Nvidia and Broadcom are in competition over GPUs and custom ASICs for AI workloads.
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Nvidia holds over 90% market share in the data center GPU market, while Broadcom is emerging in custom AI chips.
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Nvidia’s revenue grew 62% to $57 billion last quarter; Broadcom’s custom ASIC opportunities could exceed $60 billion by fiscal 2027.
Nvidia (NASDAQ: NVDA) maintains a dominant position in the AI infrastructure market, generating $57 billion in revenue last quarter with a 62% growth rate and more than tripling its revenue over two years. Broadcom (NASDAQ: AVGO) is capitalizing on its expertise in custom ASICs for AI, recently disclosing a $10 billion order and a potential $350 billion opportunity with OpenAI for custom AI chips to be deployed by 2029.
The competition intensifies as large data center operators, or hyperscalers, seek to decrease their dependence on Nvidia’s GPUs. Broadcom’s increasing partnerships for designing custom AI ASICs, which offer cost efficiency and lower power consumption, along with successful products like Alphabet’s Tensor Processing Units, position it as a growing threat to Nvidia’s market share.
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