Nvidia dominates the AI infrastructure market but faces limitations due to its mammoth size. Smaller players like AMD and Broadcom have significant growth potential and could outperform Nvidia in the next five years. AMD is making strides in AI inference and CPUs, while Broadcom focuses on custom AI chips and networking components for AI clusters.

AMD’s AI opportunity is just beginning, with potential for growth in GPU market share. The UALink Consortium aims to challenge Nvidia’s interconnects. Broadcom excels in AI networking and ASICs, designing custom AI chips for hyperscalers. Its revenue growth from custom chips could reach $60-90 billion by 2027, excluding new wins like Apple.

Broadcom’s networking components support large AI clusters, with a 70% revenue increase in AI networking last quarter. Its custom AI chips, developed for hyperscalers, offer better performance and efficiency than GPUs. The company’s VMware acquisition strengthens its position in AI cloud environments, indicating substantial growth potential.

While Nvidia remains strong, its rapid growth may slow down due to its size. AMD and Broadcom, with smaller AI-related revenue streams, have the potential to outperform Nvidia. AMD’s growth in GPU market share and Broadcom’s custom chip revenue could drive significant gains in the next five years.

Read more at Nasdaq: Prediction: These 2 AI Chip Stocks Will Outperform Nvidia Over the Next 5 Years