By Trefis Team
Publication Date: 2026-04-21 16:21:00
Nvidia (NVDA) has established its position as the leading provider of hardware for AI training and is projected to achieve over $350 billion in revenue this year. Most investors are aware of this narrative.
However, fewer people are focusing on what comes after.
The Broadcom Inc logo is displayed on a smartphone screen in this photo illustration, as the company reports results and highlights growth in AI and cloud-related demand in Brussels, Belgium, on March 3, 2026. (Photo by Jonathan Raa/NurPhoto via Getty Images)
NurPhoto via Getty Images
The expense involved in training a model is primarily a one-time investment. Ongoing operation, however, incurs continuous costs.
Every query handled by ChatGPT, every AI-aided search result, and every action by automated agents represent inference, which runs ceaselessly across billions of users each day. At such volumes, the expense of each computation is not merely an engineering detail. It differentiates a lucrative AI product from one that fails to generate profits.
This is where Broadcom (AVGO) plays a crucial role.
What Function Does Broadcom’s Chip Division Serve?
Instead of offering a general-purpose GPU to any potential client, Broadcom collaborates directly with major tech firms to develop chips specifically designed for their unique workloads. The client retains ownership of the architecture and intellectual property. Broadcom translates those designs into manufacturable silicon, overseeing power requirements, thermal…
