By Harsh Chauhan
Publication Date: 2026-04-20 19:30:00
Nvidia and Broadcom have been at the forefront of the artificial intelligence (AI) semiconductor revolution thanks to their leading-edge chips that handle workloads such as model training and inference in the data centers of major hyperscalers and AI companies.
While Nvidia makes graphics processing units (GPUs) and server processors deployed in AI data centers, Broadcom’s custom AI processors have become quite popular due to their performance and cost advantages in inference applications. Not surprisingly, both companies anticipate a significant increase in AI chip sales over the next couple of years.
Both Nvidia and Broadcom are pick-and-shovel AI companies that provide the critical infrastructure needed for the proliferation of this technology. However, their success in the AI chip market wouldn’t have been possible without foundry giant Taiwan Semiconductor Manufacturing (TSM 1.10%).
Let’s take a closer look at TSMC’s role in Nvidia and Broadcom’s remarkable growth and check why this Taiwan-based company could be the ultimate pick-and-shovel AI stock for 2026 and beyond.
Image source: TSMC.
TSMC has a wider reach in AI chips than Nvidia and Broadcom
Nvidia and Broadcom are fabless chipmakers, which means they only design AI chips. The manufacturing of their chips is outsourced to TSMC, whose leading-edge processes enable Nvidia and Broadcom to design advanced chips with high computing power and low power consumption. For instance, Nvidia’s latest Vera Rubin AI…