Broadcom and TSMC Emerge as ‘Big Winners’ in Custom AI Chip Boom

Broadcom (NASDAQ:AVGO) and Taiwan Semiconductor Manufacturing (NYSE:TSM) are emerging as major beneficiaries of the custom AI chip boom, capturing value alongside NVIDIA’s continued dominance in the AI infrastructure market.

Broadcom just reported Q1 FY2026 revenue of $18.02B, up 28% year-over-year, with AI semiconductor revenue surging 74%. The company’s Q1 FY2026 guidance projects AI semiconductor revenue will double year-over-year to $8.2B, driven by custom AI accelerators and Ethernet AI switches. With 188% earnings growth in its most recent quarter and consistent gross margins around 68%, Broadcom is demonstrating exceptional pricing power as hyperscalers build proprietary chip architectures.

TSMC’s role as the manufacturing backbone is equally critical. The foundry giant posted Q4 2025 revenue of $33.73B, up 20.5% year-over-year, with 77% of wafer revenue coming from advanced 7nm and below processes. The company’s 3nm node…