By Fahad Saleem
Publication Date: 2026-04-20 13:17:00
We just covered the
10 Best AI Stock Picks of Motley Fool Asset Management. Broadcom Inc. (NASDAQ:AVGO) ranks #7 (see the 5 Best AI Stock Picks of Motley Fool Asset Management).
Major companies are lining up for Broadcom’s custom AI chips. The company recently made headlines after signing deals with Meta, Google and Anthropic.
Broadcom is a leader in the custom AI chip market, where demand is rising as companies look to cut reliance on expensive Nvidia chips. According to a Deloitte report, the custom AI chip market is expected to exceed $50 billion in 2026, driven by a shift in workloads from training to inference, which will account for roughly two-thirds of all compute that year. While lighter inference tasks can be handled on PCs and smartphones with onboard accelerators, enterprise and hyperscale workloads still require high-performance, custom-designed chips to efficiently manage post-training and test-time scaling.
What’s Broadcom’s moat? There are only…
