Nvidia and Broadcom are facing off in a battle over GPUs versus custom ASICs for AI workloads. Nvidia is currently the dominant player in AI infrastructure, with over 90% market share in the data center GPU space. On the other hand, Broadcom has a significant opportunity with custom AI chips, especially in collaboration with hyperscalers like Alphabet.

While Nvidia’s GPUs have advantages over ASICs in flexibility and availability, Broadcom’s custom AI ASICs are gaining traction due to their power efficiency and cost-effectiveness. The success of Broadcom in designing chips like TPUs for hyperscalers has positioned it as a strong contender in the AI chip market. With a potential $60 billion opportunity in AI ASICs, Broadcom’s growth prospects are promising.

In the battle for AI chip dominance, Nvidia is expected to retain its position as the leader. However, Broadcom emerges as the better stock pick for 2026 due to its smaller revenue base and potential for explosive growth in the ASICs business. Both companies are poised for success as AI data center spending increases, but Broadcom’s growth potential makes it a more attractive investment choice.

Read more at Nasdaq: Nvidia vs. Broadcom: Which Is the Better AI Chip Stock to Own in 2026?