Not Nvidia, Not AMD. Broadcom's Custom Silicon Business Is Quietly Becoming an AI Chip Powerhouse
Yahoo Finance ·
Nvidia ( NVDA +1.68% ) and Advanced Micro Devices are among the leading designers of chips used in artificial intelligence (AI) data centers, which helps explain why both companies have been posting healthy financial growth. The graphics processing units (GPUs) and server central processing units (CPUs) designed by both companies are deployed in AI data centers to perform tasks such as training AI models, running inference, and creating and deploying AI agents. Both semiconductor stocks have delivered incredible returns to investors in recent years, and they can keep flying higher over the long run amid the huge investments in AI infrastructure. However, Broadcom ( AVGO -0.92% ) is quietly giving Nvidia and AMD serious competition in AI chips. Let's take a closer look at Broadcom's AI business and find out why it is becoming a powerhouse in the AI semiconductor space. Broadcom designs application-specific integrated circuits (ASICs), which means it addresses a different niche than AMD and Nvidia, which design server CPUs and GPUs for AI data centers. The demand for these custom AI processors has taken off due to their cost efficiency, especially in inference.
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