Broadcom's Custom AI Chip Empire: Why ASICs Are the Next $100B Market
Broadcom designs custom AI chips for Google, Meta, and others. The ASIC market could reach $100B by 2028.
While NVIDIA dominates general-purpose AI GPUs, a parallel revolution is happening in custom AI chips (ASICs). Broadcom sits at the center of this trend, designing bespoke AI accelerators for the world's largest tech companies.
Google's TPU v6, Meta's MTIA, and other hyperscaler custom chips are all designed with Broadcom's involvement. These ASICs offer 2-3x better performance per watt for specific AI workloads compared to general-purpose GPUs.
The addressable market is massive. Custom AI ASICs could grow from $15B in 2025 to $100B+ by 2028 as more companies seek to reduce NVIDIA dependence and optimize for their specific AI workloads.
Broadcom's VMware acquisition adds another growth vector - enterprise software recurring revenue that smooths out semiconductor cyclicality.
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