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Keithen Drury, The Motley Fool
Fri, March 13, 2026 astatine 10:52 AM CDT 3 min read
There's not a batch of statement that Nvidia (NASDAQ: NVDA) has been the champion mode to put successful the AI buildout since it kicked disconnected successful 2023. Its banal has soared implicit 1,100% since then, but it has delivered comparatively lackluster returns since astir August of past year.
There's a wide sentiment successful the marketplace that Nvidia can't support this up and is primed to beryllium disrupted. I don't needfully hold with that and inactive deliberation Nvidia is simply a worthy concern prime -- but truthful is this institution that's trying to disrupt Nvidia's business.
Will AI make the world's archetypal trillionaire? Our squad conscionable released a study connected the 1 little-known company, called an "Indispensable Monopoly" providing the captious exertion Nvidia and Intel some need. Continue »
The biggest rival to Nvidia close present is Broadcom (NASDAQ: AVGO). Broadcom is taking a antithetic attack to AI computing, and it's unsocial capable that it tin carve retired its ain niche that allows Nvidia to marque a ton of wealth still, but besides present monster maturation for Broadcom investors.
Nvidia makes graphics processing units (GPUs), which are fantastic for handling aggregate types of workloads. This makes Nvidia's computing hardware the go-to enactment for galore clients, arsenic they tin bash astir thing they privation connected these units. However, GPUs aren't ever the astir businesslike choice. If a GPU is lone going to spot 1 benignant of workload passim its work life, past these other capabilities are wasted.
That's wherever a customized AI spot from Broadcom comes in. It's partnering straight with AI hyperscalers to plan customized chips that are suited to their specifications. While these don't person the flexibility that a GPU does, they tin present akin to amended show successful immoderate applications astatine a cheaper terms point. The astir well-known illustration of a customized AI spot is Google's Tensor Processing Unit (TPU). The TPU has allowed Google to surge backmost into the apical positions of the generative AI buildout, and is simply a fashionable computing enactment to rent retired from its unreality computing platform.
Broadcom expects monster maturation from its AI semiconductor part implicit the adjacent fewer years. During Q1 of fiscal twelvemonth 2026 (ending Feb. 1), Broadcom generated $8.4 cardinal successful AI semiconductor revenue, up 106% twelvemonth implicit year. Next quarter, it expects this fig to emergence 76% twelvemonth implicit twelvemonth to $14.8 billion. By the extremity of 2027, this concern portion expects to make implicit $100 cardinal successful revenue.
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