Broadcom vs. Nvidia: 1 Critical Metric Shows Which Artificial Intelligence (AI) Chipmaker Is the Better Buy After Earnings

The article compares Broadcom and Nvidia by focusing on how each approaches AI hardware. It argues Nvidia’s GPUs are general-purpose accelerated compute units, while Broadcom designs ASICs (application-specific integrated circuits) tuned for narrower AI workloads, aiming to reduce wasted circuitry and cost. It says Broadcom has been serving hyperscalers and frontier labs with custom designs, citing partners such as Alphabet and Meta Platforms, plus AI labs including Anthropic and OpenAI. Financially, it notes Broadcom reported fiscal Q3 results on Sept. 2, with AI semiconductor division revenue up 221% year over year to $16.7 billion, while Nvidia’s data center revenue grew 117% to $89 billion. The piece concludes that custom chips could gradually shift data center demand toward Broadcom.