By Micah Zimmerman, The Motley Fool
Publication Date: 2026-06-08 19:50:00
For three years, the artificial intelligence (AI) trade was simple: Buy Nvidia, collect the upside, repeat. The graphics processing unit (GPU) was the atom of modern AI; everything else seemed to be organized around it.
That story is not over. But something structural is shifting beneath it, creating one of the more compelling investment setups of the next decade.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
The largest technology companies on Earth are no longer content to simply buy Nvidia’s chips off the shelf. They are designing their own, purpose-built silicon tuned to their specific models, workloads, and cost structures.
Custom application-specific integrated circuits (ASICs) are projected to account for 27.8% of the AI server compute market in 2026, growing 44.6% year over year, nearly triple the growth rate for merchant GPUs. That gap is going to keep widening.
Two companies sit at the center of this shift, and together they control roughly 95% of the custom AI ASIC co-design market.
Broadcom: The architect hyperscalers can’t quit
Broadcom (NASDAQ: AVGO) has been designing Alphabet‘s Tensor Processing Units (TPUs) since TPUv2. Most people who follow AI loosely know this. What…
