Broadcom Surpasses Nvidia with 36% Return Over Six Months

Broadcom's AI semiconductor segment is growing faster than Nvidia's data center revenue, making it more likely for Broadcom to outperform Nvidia in the future. Over the past six months, Broadcom has seen a 36% return, outpacing Nvidia.

The shift to custom-made chips may explain why Broadcom is doing so well and leaving Nvidia shares behind. Many tech giants have Broadcom create custom chips for them, including Alphabet's TPU chips and Meta Platforms' MTIA chips. The company also counts Microsoft and Amazon as top customers.

Broadcom's earnings demonstrate why it is the leading ASIC producer. In its fiscal 2026 second quarter, the company delivered 48% year-over-year revenue growth in its AI semiconductor segment, with net income almost doubling year over year. That's a faster growth rate than Nvidia's data center revenue.

Broadcom CEO Hock Tan even told investors to expect AI semiconductor revenue to surge by more than 200% in its fiscal 2026 third quarter. The forecast represents a meaningful improvement and high sequential growth, making it likely for Broadcom to continue outperforming Nvidia.