Broadcom (AVGO · NASDAQ)

Broadcom Designs Chips Challenging NVIDIA for Hyperscalers
OpenAI Taps Broadcom to Co-Design Custom Chips in Bid to Lower Costs and Diversify Suppliers
Bull case for Broadcom
Broadcom Owns Most of the Custom Chip Share
Dominates custom ASIC market with multi-year hyperscaler contracts worth billions.
Google Token Processing Tripled in Six Months
Gemini adoption drives 171% surge in TPU-powered token processing through October.
AI Revenue Hits $20 Billion, Doubling Annually
$110 billion backlog with 67% margins provides multi-year revenue visibility.
Bear case for Broadcom
Three Customers Drive AI Revenue
Heavy reliance on Google, Meta, ByteDance creates concentration risk.
NVIDIA and Intel Enter Custom Silicon Market
NVIDIA's custom unit and Intel's competitive pricing threaten custom chip making monopoly.
Price Hikes Drive Customers Away
VMware's 500-600% price increases push enterprises to Nutanix and open-source alternatives.