By Geoffrey Seiler
Publication Date: 2026-01-22 00:15:00
Broadcom is poised to be one of the biggest beneficiaries of increasing AI infrastructure spending.
Spending on artificial intelligence (AI) infrastructure is booming, but there is also a shift in the market. While Nvidia‘s graphics processing units (GPUs) continue to dominate the market, more and more large companies are turning toward developing AI ASICs (application-specific integrated circuits) to handle some of these workloads. ASICs are custom chips that have been preprogrammed for specific tasks, and because of that, they tend to have strong performance and are more energy efficient.
Meanwhile, the company that hyperscalers (owners of large data centers) are increasingly turning to to help them make custom AI chips is Broadcom (AVGO 1.25%). Broadcom is a leader in ASIC technology, where it can help turn customers’ designs into physical chips and get them manufactured at scale. It basically provides the building blocks and some of the important intellectual property (IP) for…
