By Justin Pope
Publication Date: 2026-05-05 17:00:00
While Nvidia gets most of the attention as Wall Street’s AI kingpin because of its prolonged dominance in AI data center GPU chips, a competitor has been building something special. Broadcom (AVGO +3.47%) has landed major chip deals with various major AI companies, including Alphabet, Meta Platforms, Anthropic, and OpenAI.
With these deals, Broadcom might actually be the better AI stock to own. The best part? Broadcom is winning in ways that can be difficult for Nvidia to counterpunch. Broadcom has become the leader in custom AI chips, purpose-built for each customer’s needs.
Here is just how big Broadcom’s AI opportunity could be, and why the stock price doesn’t yet factor in all of the upside.
Image source: The Motley Fool
Don’t sleep on Broadcom’s explosive XPU growth
Broadcom has developed what it calls XPUs. Whereas Nvidia sells standardized GPU chips for AI applications, Broadcom’s XPUs are customized, designed specifically for each customer’s needs. That benefits Broadcom’s customers in multiple ways, including cost and efficiency, and ensures an AI company doesn’t depend solely on Nvidia for all its AI chips.
The company earned $20 billion from its AI business in 2025, but that’s poised to soar as multiple chip deals with prominent AI companies ramp up. CEO Hock Tan noted that AI revenue could grow to well above $100 billion by the end of next year.
That’s a fivefold increase from 2025 AI sales for those not keeping track of the numbers. Broadcom’s entire…
