By Daniel Foelber
Publication Date: 2026-06-02 06:00:00
Nvidia (NVDA +6.26%) delivered yet another blockbuster earnings report on May 20. The chip giant continues to rapidly grow its sales and earnings and distribute more cash to shareholders through buybacks and a 2,400% increase in its dividend. But Nvidia’s stock price has fallen since its earnings report as investor attention shifts toward the boom in artificial intelligence (AI) memory chips and application-specific integrated circuits (ASICs).
ASICs, like those designed by Broadcom (AVGO +2.94%), are cost-effective at scale for repetitive, high-volume workloads such as AI inference for chatbots, agentic AI, and search algorithm optimization.
Here’s what Nvidia and Broadcom investors should look for when Broadcom reports earnings on June 3.
Image source: Getty Images.
1. Custom chip demand
Broadcom is at the forefront of the ASIC boom. Its most high-profile partnership is with Alphabet.
For nearly a decade, Broadcom has collaborated with Alphabet-owned Google to develop Tensor Processing Units (TPUs). Google recently released two separate chips — the 8t for training and the 8i for inference. For example, the 8t could be used for training Google’s Gemini large language models (LLMs), while 8i would be good for Google Search, YouTube recommendations, and targeted ads.
On its first-quarter 2026 earnings call, Google said it would begin selling TPUs to a select group of customers. In early April, Anthropic, the maker of the Claude family of LLMs, announced an exclusive…