Broadcom Challenges Nvidia and AMD as a Rising Force in AI Chips

Broadcom's custom silicon business is rapidly gaining ground in the AI chip market.

The company has secured six major customers for its custom AI chips, including Alphabet's Google and Meta Platforms, which have been deploying Broadcom's technology in large volumes.

In the third quarter of fiscal 2026, Broadcom's custom AI processor shipments increased by 3.5x year over year, leading to a 221% year-over-year increase in the company's AI semiconductor revenue to $16.7 billion.

Broadcom expects its key customers to continue ramping up their use of custom AI processors, resulting in a 236% year-over-year increase in AI revenue in the current quarter to $21.7 billion and projected AI revenue of $58 billion in fiscal 2026, surpassing the company's original estimate.

Broadcom also forecasts exponential growth in demand for its custom chips from its AI customers, with plans to deploy 1 gigawatt of custom AI chips for Anthropic in 2026, followed by 5 gigawatts in 2027 and 10 gigawatts in 2028.