Not Nvidia, Not AMD. Broadcom’s Custom Silicon Business Is Quietly Becoming an AI Chip Powerhouse – AOL

Key Points

• Broadcom expects AI chip revenue to double over the next couple of fiscal years, driven by its impressive clientele.

• The company’s custom AI chip customers are on track to ramp up the deployment of Broadcom chips.

• Broadcom offers a mix of growth and value compared to peers such as Nvidia and AMD.

Nvidia(NASDAQ: NVDA) and Advanced Micro Devices are among the leading designers of chips used in artificial intelligence (AI) data centers, which helps explain why both companies have been posting healthy financial growth.

The graphics processing units (GPUs) and server central processing units (CPUs) designed by both companies are deployed in AI data centers to perform tasks such as training AI models, running inference, and creating and deploying AI agents. Both semiconductor stocks have delivered incredible returns to investors in recent years, and they can keep flying higher over the long run amid the huge investments in AI infrastructure.

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