tech
January 30, 2026
Buzz about Broadcom’s custom chips is testing, but not breaking Nvidia's dominance
As custom chips gain favor, the Street weighs what it really means for Nvidia.
TL;DR
- Custom chips are preferred for cutting-edge AI development when resources are not a constraint.
- Google used Broadcom-designed TPUs to train Gemini 3, positioning them as an alternative to Nvidia GPUs.
- Nvidia CEO Jensen Huang believes his company's GPUs are more versatile and cater to broader markets than custom chips.
- Google, Amazon, and Microsoft are developing their own custom chips while remaining significant Nvidia customers.
- Industry experts suggest Nvidia's market dominance is being tested, with hyperscalers seeking diversification from single vendors.
- Broadcom has seen significant AI revenue growth and secured a large order from Anthropic.
- Despite Broadcom's progress, Nvidia is expected to maintain a dominant market share for the foreseeable future.
- High barriers to entry, including cost and manufacturing capacity, favor established players like Nvidia.
- Analysts have mixed but generally positive ratings on both Nvidia and Broadcom, with some preferring Nvidia.
- Jim Cramer advises a 'buy the dip' strategy for both Broadcom and Nvidia, holding them as long-term investments.
Continue reading the original article