Broadcom stock up 36% as AI chip sales jump 143%

Broadcom’s shares have surged 36% over the past six months, outpacing Nvidia and highlighting a shift in the AI chip market. The gains come as investors bet on Broadcom’s custom-built ASIC chips, which are powering AI systems at tech giants like Alphabet, Meta, Microsoft and Amazon. Nvidia remains the dominant name in AI hardware, but Broadcom’s specialized approach is drawing fresh attention—and money.

The rally reflects growing demand for AI chips optimized for narrow tasks rather than general-purpose processing. Broadcom designs application-specific integrated circuits (ASICs) tailored to individual customers, while Nvidia’s GPUs are built for broader workloads. That specialization is paying off: AI semiconductor revenue at Broadcom nearly tripled in the last year, and the segment now makes up almost half of total sales. Analysts say the trend is likely to continue as companies push for more energy-efficient, low-latency chips to run AI models in data centers.

Broadcom’s momentum is accelerating. In its latest quarter, revenue from AI semiconductors jumped 143% year over year, more than double Nvidia’s 92% growth in data center chips. The company now expects AI chip revenue to surge over 200% in the current quarter, forecasting $16 billion in sales alone. Overall revenue is projected to reach $29 billion, a figure that would mark an 84% increase from the same period last year. CEO Hock Tan has called the growth “meaningful” and “high sequential,” signaling confidence in sustained demand.

The shift matters because it shows the AI chip market is diversifying beyond Nvidia’s core GPU business. While Nvidia still leads in raw scale, Broadcom is carving out a critical niche in custom silicon, where speed and efficiency outweigh flexibility. As AI workloads become more specialized, companies are willing to pay for chips built exactly to their needs. That could keep Broadcom’s growth outpacing Nvidia’s—at least for now.