By Keithen Drury
Publication Date: 2025-12-21 12:00:00
Key Points
Broadcom’s custom AI chips are growing in popularity as an alternative to Nvidia’s.
Now, Amazon has created its own custom AI chip, Trainium3, to carve out its own niche.
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…
