By Keithen Drury
Publication Date: 2025-12-01 12:41:00
Broadcom’s chips have made headlines in recent days.
Nvidia (NVDA 1.83%) has been one of the best stocks to own since the AI revolution kicked off in 2023. However, there are questions about its dominance heading into 2026. There is rising competition from AMD, but a relatively unheralded competitor could be challenging Nvidia.
Who is this competitor that is making headlines in recent weeks? It’s not Alphabet and its high-powered Tensor chips; it’s Broadcom (AVGO +1.36%).
Image source: Getty Images.
Alphabet and Broadcom are set to benefit from a new sales stream
Nvidia makes graphics processing units (GPUs), which are well-suited for any task that requires accelerated computing. These devices were the top picks for many companies looking to train artificial intelligence workloads, but they are incredibly expensive. While AMD has offered a cheaper alternative, their supporting hardware and software are not the same as Nvidia’s. However, there’s another option many companies are turning to.
Broadcom’s custom AI accelerators are a different style of computing unit than the GPU. Instead of being suited to run a wide variety of workloads, these custom AI accelerator chips are tailored to run a specific style of workload. This can increase performance and drive down cost, at the price of flexibility.
As we move toward an inference-heavy computing power deployment, the workloads are fairly known, so it doesn’t require as many Nvidia GPUs to train the AI model. In their place,…
