Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St.
Broadcom is projected to dominate the custom AI chip market as hyperscalers expand internal AI chip programs.
Microsoft, Google, Amazon, and Meta are reported as key customers for Broadcom’s custom AI server compute ASICs.
Broadcom is said to hold about 60% projected market share in AI server compute ASICs by 2027, with expectations of tripling ASIC shipments.
The company is a primary supplier for Microsoft’s Maia AI chip initiatives and is linked to multi year AI infrastructure buildouts.
For investors watching NasdaqGS:AVGO, the focus is on Broadcom’s role behind the scenes in powering hyperscale data centers. The company sits at the center of custom AI chip efforts at Microsoft, Google, Amazon, and Meta, with these relationships tied directly to infrastructure spending. With a current share price of $333.24 and a very large 3 year and 5 year return, Broadcom has already drawn significant market attention.
The projected 60% share of the AI server compute ASIC market by 2027 and expectations for tripling ASIC shipments highlight the scale of AI related demand Broadcom is positioned to serve. If hyperscalers continue prioritizing in house AI chips for performance and cost control, Broadcom’s role as a design and manufacturing partner could remain important for data center build plans and long term hardware roadmaps.
Stay updated on the most important news stories for Broadcom by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Broadcom.
How Broadcom stacks up against its biggest competitors
For Broadcom, being projected as the leading custom AI chip partner for hyperscalers links directly to how AI-focused data centers are being built, because custom application-specific integrated circuits, or ASICs, are a way for Microsoft, Alphabet, Amazon, and Meta to tailor cost and power use for their own models instead of relying only on general-purpose GPUs from companies like Nvidia and AMD. If hyperscalers scale these in house AI programs as flagged, Broadcom’s role in supplying both accelerators and Ethernet connectivity could deepen its presence across the full AI rack, not just individual chips.
This projected leadership in custom AI silicon lines up with the existing narratives that highlight Broadcom as a key supplier of AI accelerators and networking for large cloud and AI platforms, while also leaning on its infrastructure software portfolio. The news about Broadcom’s work tied to Microsoft’s Maia AI chips, Google’s tensor-style processors, and a broader AI-specific backlog supports the idea that custom silicon demand is a central driver in both the more optimistic and more cautious AVGO narratives you have seen.
