By Keithen Drury
Publication Date: 2025-12-21 12:00:00
Key Points
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Broadcom’s custom AI chips are growing in popularity as an alternative to Nvidia’s.
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Now, Amazon has created its own custom AI chip, Trainium3, to carve out its own niche.
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Amazon needs to sustain its strong AWS growth in 2026 to be a successful stock pick.
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Semiconductor company Broadcom (NASDAQ: AVGO) has enjoyed an incredible year, rising some 50% so far, even after a large pullback due to poorly received fourth-quarter results. This has investors searching for the next Broadcom, as who wouldn’t want those incredible one-year returns?
The secret to Broadcom’s rise is tied to the custom artificial intelligence (AI) chips it’s developing. These compete directly against Nvidia‘s (NASDAQ: NVDA) graphics processing units (GPUs), which are incredibly costly due to their impressive performance and flexibility. Broadcom’s custom AI chips can outperform Nvidia’s GPUs at a lower price point when the…
