Nvidia’s getting all the attention. Broadcom’s quietly taking over the custom AI chip market — and it owns 70% of it.
Here’s the shift: Companies are tired of paying premium prices for off-the-shelf Nvidia GPUs. They want custom chips built for their specific workloads. That’s where Broadcom comes in. The company dominates custom AI silicon with over 70% market share, leaving its closest rival Marvell fighting for scraps at 20%.
But Broadcom isn’t just making chips. Its Tomahawk 5 and Jericho networking chips are becoming the industry standard for connecting thousands of AI GPUs inside massive data centers. That’s a brand-new, high-margin revenue stream that didn’t exist two years ago.
Then there’s the VMware play. Broadcom’s aggressively pushing VMware’s customer base to subscription-only licenses, phasing out perpetual deals. That’s setting up double-digit revenue growth in the software segment — predictable, recurring cash flow that Wall Street loves.
Billionaire Ken Griffin holds over $1.3 billion in Broadcom — ranked #6 in his portfolio. When you see that kind of conviction from Citadel, combined with a 70% market share in custom AI chips, you’ve got a name worth watching.
