- Broadcom AI revenues have jumped 77% in annual shift, increasing its shares after a volatile 2025 so far.
- Broadcom’s personalized AI fleas, designed with cloud companies, offer lower cost options than Nvidia.
- Analysts predict that the ASIC market will double this year.
No matter where the leaders of Nvidia go, they receive questions about the personalized AI fleas. Broadcom made sure that this will not stop anytime soon.
Broadcom published quarterly profits on a market reaction and elegant criticism – in large part thanks to its AI business on Thursday.
Broadcom burst In the consumer conversation of the AI in December, when she entered the market capitalization club of 1 Billion for the first time. Like most AI shares, Broadcom had a Volatil 2025, although the action jumped more than 10% after hours Thursday after the company said $ 4.1 billion in IA revenue in the last quarter – an increase of 77% of income from the same period last year.
Broadcom, led by the CEO Hock Tan, is one of the best players in the integrated circuit activity (ASIC) specific to the application. These personalized AI chips are generally designed in partnership with cloud companies and are not as versatile as the coveted chips of Nvidia. They are designed to perform specific AI tasks at high volume at a much lower cost.
As AI workloads develop and develop, analysts expect ASICs to be an increasingly attractive option for customers, who, even if they build their personalized programs, often place large orders with Nvidia.
Morgan Stanley analysts have planned that the market Asics Will be almost double for $ 22 billion this year. Broadcom has projected its own AI business with its three largest hyperscal customers would bring between $ 60 billion and $ 90 billion over the next two years.
Synovus Senior Portfolio, Dan Morgan, wrote to investors on Thursday that Broadcom is a “convincing way to play” in AI investment because he is “less volatile than the merchant Act race.”
Analysts say that Broadcom’s biggest customers for AI fleas are Google, Bytedance and Meta. Tan said that the company was engaged with four others, although it hesitated to call them customers on the call. He highlighted the difference between the development and test of a new chip and order it on a large scale for deployment.
CEO of Nvidia Jensen Huang had a similar warning in his remarks last week during the Company profits call.
“Just because the chip is designed that it is deployed. And you saw it again and again,” said Huang.
Asked about the competitive threat of the ASIC, Huang said: “We are general, we are from start to finish and we are everywhere.”
The story of personalized fleas is not entirely uniform. Marvell, another leading player who makes Amazon Personalized fleas, missed expectations in his report on results on Wednesday.