Broadcom Emerges as Key Player in AI Chip Market with ASIC Dominance

Broadcom (AVGO) is solidifying its position as a critical enabler of AI infrastructure, with its application-specific integrated circuits (ASICs) gaining traction among tech giants like Google and Meta. The stock has surged 120% in the past year, drawing fresh bullish sentiment from Macquarie analyst Arthur Lai.

Lai predicts a seismic shift in the AI chip landscape, where ASICs will outpace GPUs in adoption. Hyperscalers and industries ranging from automotive to healthcare are driving demand, with the global AI ASIC market projected to grow at a 72% CAGR through 2028. Broadcom commands a near-monopoly in this space, controlling 70% of the market share alongside dominance in cloud networking and Ethernet technologies.

The complexity of AI models is accelerating demand for specialized chips, positioning Broadcom at the nexus of hardware innovation. Its vertical integration across switching, routing, and SerDes IP creates an unassailable moat—a rarity in the volatile semiconductor sector.