Broadcom Surges Past Nvidia with 36% Gain in Six Months

Broadcom has outperformed Nvidia by 36% over the past six months, driven by its positioning in the ASIC chip industry. The company's 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, which makes future outperformance more likely. The shift to custom-made chips may explain why Broadcom is doing so well and leaving Nvidia shares behind.

The company 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. These custom chips are designed by Broadcom and are used by top customers such as Microsoft and Amazon.

Broadcom's earnings demonstrate why it is the leading ASIC producer. The company recently delivered 48% year-over-year revenue growth in its fiscal 2026 second quarter, with net income almost doubling year over year.