Broadcom Leaves Nvidia Behind with 36% Six-Month Gain

Broadcom is outperforming Nvidia in the AI chip market, gaining a 36% return over six months. The company's positioning in the ASIC chip industry has helped it excel.

The AI semiconductor revenue more than doubled year over year and is projected to more than triple year over year. Broadcom's AI semiconductor segment is growing faster than Nvidia's data center revenue, making future outperformance likely.

Broadcom produces ASIC chips while Nvidia specializes in GPUs. Many tech giants have Broadcom create custom chips for them, including Alphabet's TPU chips and Meta Platforms' MTIA chips. The company recently delivered 48% year-over-year revenue growth in its fiscal 2026 second quarter.