Did Nvidia Just Lose Its Spot as Wall Street’s AI Chip Darling? JPMorgan Says This ‘Overall Top Pick’ Is Better.

If someone asked you to name a large AI chip manufacturer, you’d probably say Nvidia (NVDA), Advanced Micro Devices (AMD), or maybe Taiwan Semiconductor (TSM). Your first thought probably wouldn’t be Broadcom (AVGO).

But Broadcom is actually a giant in the AI hyperscaler space with a $1.6 trillion market cap. Up 54% over the past year, the company has found defining success by pursuing only seven to 10 main customers who need billion-dollar buildouts rather than chasing many small $10 million contracts.

That strategy is paying off in a major way. Broadcom reported an AI order backlog of $73 billion to be delivered over the next six quarters, with management expecting that figure to continue growing as new orders roll in.

JPMorgan recently raised its price target on the stock and maintained its “Overweight” rating, calling the recent dip a buying opportunity. So what exactly does Broadcom do, and why are Wall Street’s biggest investors loading up on shares?

What Does Broadcom Do?

Broadcom has achieved its success through category-leading semiconductor and infrastructure software solutions. The company operates two primary business segments: Semiconductor Solutions and Infrastructure Software.

On the semiconductor side, Broadcom is the leader in custom ASICs (application-specific integrated circuits) designed specifically for data center AI workloads. 

ASICs are specialized chips built to exact…