By Unknown
Publication Date: 2026-08-09 13:46:00
Key Points
Broadcom’s positioning in the ASIC chip industry has helped it outperform Nvidia over the past six months.
AI semiconductor revenue more than doubled year over year, and it’s projected to more than triple year over year.
Broadcom’s AI semiconductor segment is growing faster than Nvidia’s data center revenue, which makes future outperformance more likely.
Nvidia(NASDAQ: NVDA) is one of the most well-known stocks due to its AI chips. It has become the world’s most valuable publicly traded company, but that doesn’t make it the best stock to hold.
Fellow semiconductor stock Broadcom(NASDAQ: AVGO) has outperformed Nvidia with a 36% return over the past six months. The shift to custom-made chips may explain why Broadcom is doing so well and leaving Nvidia shares behind.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again.In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
ASIC chips are poised to gain market share
Broadcom produces ASIC chips while Nvidia specializes in GPUs. Nvidia’s AI chips can handle a wide range of general tasks, but Broadcom’s chips are specialized for specific tasks.
Many tech giants have Broadcom create custom chips for them. Alphabet’s TPU chips and Meta Platforms‘ MTIA chips are designed by Broadcom, and the AI chipmaker also counts Microsoft and Amazon as…
