By Anthony Di Pizio
Publication Date: 2026-01-01 10:15:00
Broadcom stock has soared by almost 700% over the last five years.
Artificial intelligence (AI) development requires an astronomical amount of computing power, which can only be delivered through large, centralized data centers fitted with thousands of specialized chips. Nvidia (NVDA 0.56%) CEO Jensen Huang predicts annual spending on this infrastructure could hit $4 trillion by 2030, creating a massive financial opportunity for hardware suppliers.
Nvidia’s graphics processing units (GPUs) are currently the best chips in the world for AI development, but Broadcom‘s (AVGO 1.07%) alternative chips — called AI accelerators — are increasing in popularity among tech giants because they can be fully customized.
Broadcom stock soared by 50% in 2025, comfortably beating Nvidia stock, which climbed by 36%. But is it too late for investors to board this train, or are the best gains yet to come?
Image source: Getty Images.
Serving some of the biggest AI companies
Nvidia’s data center GPUs are a great plug-and-play solution for most AI companies, but as workloads become more complex, some developers see value in custom solutions that can be tailored to their specific needs. Alphabet, for instance, enlisted Broadcom’s help to create its own AI accelerators called Tensor Processing Units (TPUs), which it used to develop its industry-leading Gemini family of AI models.
Alphabet recently started selling its latest Ironwood TPUs to other developers, which is a big win for Broadcom as…