<ul><li>Broadcom's stock surged recently, pushing its market value over $1 trillion after a strong earnings report.</li><li>The company’s custom AI chips, particularly ASICs (application-specific integrated circuits), saw a 220% revenue growth. Broadcom and competitors like Marvell are leading the rise in custom chips, which are gaining traction as tech companies seek alternatives to Nvidia’s dominance in AI chips.</li><li>Custom chips offer better performance for specific workloads, increasing bargaining power for firms like AWS, Google, and Apple when negotiating with Nvidia. While ASICs won’t replace Nvidia’s GPUs, they are reshaping the chip market, with growth expected to reach $22 billion next year.</li></ul>

A chip company you probably never heard of is suddenly worth $1 trillion. Here's why, and what it means for Nvidia

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