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- 💥 Nvidia Dominates AI — But This Stock Might Grow Faster
💥 Nvidia Dominates AI — But This Stock Might Grow Faster
Broadcom’s AI networking and custom chip dominance could unlock even bigger upside.
Bensheares Parker
February 21, 2026
In partnership with
Hi Fellow Investors,
Nvidia (NASDAQ: NVDA) remains the undisputed leader in AI GPUs with over 90% market share.
However, Broadcom (NASDAQ: AVGO) may offer even more explosive growth potential as AI infrastructure spending accelerates.
Investors seeking diversified exposure to the AI buildout may find Broadcom particularly compelling at current levels.
Key Points:
Nvidia dominates AI GPUs, but Broadcom leads in networking and custom ASIC chips.
Custom silicon demand from Alphabet, Anthropic, and OpenAI could drive massive revenue growth.
Broadcom’s AI exposure spans multiple layers of the data center stack.
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Nvidia’s Moat Is Real — But Concentrated
Nvidia’s GPUs remain the primary engines powering AI workloads.
Its CUDA software ecosystem has entrenched developers across universities and research institutions.
This early advantage helped establish a powerful competitive moat in training large language models.
As AI infrastructure spending continues climbing, Nvidia should remain a primary beneficiary.
However, its dominance is heavily tied to GPU-based computing.
Investors looking for broader AI exposure may consider adjacent infrastructure plays.
Broadcom’s Networking Dominance Is Underappreciated
Broadcom has become a critical supplier of data center networking hardware.
Its Tomahawk Ethernet switches are widely adopted in hyperscale environments.
As AI clusters scale in size and complexity, networking throughput becomes mission-critical.
Broadcom also supplies fiber-optic interconnects, digital signal processors, and network interface cards.
These components ensure seamless data movement across increasingly dense AI compute clusters.
While smaller than the GPU market, networking demand may grow at an even faster pace.
The Explosive Custom Chip Opportunity
Broadcom is also a leader in application-specific integrated circuits (ASICs).
Unlike general-purpose GPUs, ASICs are optimized for specific workloads and can deliver superior energy efficiency.
Broadcom helped Alphabet develop its Tensor Processing Units, which now support internal AI workloads and Google Cloud customers.
Anthropic has reportedly placed multibillion-dollar orders for custom chips through Broadcom.
OpenAI’s planned deployment of custom silicon infrastructure represents another enormous opportunity.
With total revenue just under $64 billion last fiscal year, even incremental ASIC wins could materially accelerate growth.
Strengths
Diversified AI exposure across networking, ASICs, and data center infrastructure.
Deep hyperscaler relationships with Alphabet, Anthropic, and OpenAI.
Positioned at critical bottlenecks in AI cluster scalability.
Weaknesses
Heavy reliance on large hyperscaler customers introduces concentration risk.
ASIC success depends on sustained AI workload growth and design wins.
Valuation remains elevated relative to historical norms.
Potential
Custom silicon adoption could unlock multi-year explosive revenue expansion.
Networking demand may accelerate as AI clusters grow exponentially.
Broadcom could outpace GPU-focused peers if ASIC momentum intensifies.
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Conclusion
Nvidia remains a powerhouse in AI computing.
However, Broadcom’s exposure to networking and custom silicon creates a compelling alternative growth story.
For investors seeking broader participation in the AI infrastructure boom, Broadcom may offer superior upside over time.
Final Thought
AI revolutions rarely reward only one company.
The real winners often control the infrastructure behind the scenes.
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