Nvidia maintains its AI dominance with a software moat tied to its GPUs. However, Broadcom is challenging this with its AI market share growth, bolstered by partnerships with major companies like Google, Meta Platforms, and ByteDance for custom AI chips. Broadcom recently secured a deal with OpenAI for over $10 billion in AI racks.

Broadcom reported Q3 earnings of $15.95 billion, up 22% YoY, with net income of $4.14 billion. CEO Hock Tan projects AI semiconductor revenue to reach $6.2 billion next quarter. The company also announced a partnership with a new customer for AI accelerators, rumored to be OpenAI.

Following the earnings report, analysts estimate Broadcom’s AI market share at around 11% for 2025, with potential sales approaching $100 billion by 2027. With Google accounting for a significant portion of Broadcom’s sales, competition from Nvidia is rising in the networking market. Analysts reaffirm a buy rating for Broadcom with a target price increase to $400.

Read more at Yahoo Finance.: Analysts revamp Broadcom price target on OpenAI deal