Key Points
Over the past three years, it’s been hard to find a bigger market leader than Nvidia (NASDAQ: NVDA). Its computing units have helped drive the AI race to new heights, and it has risen to become the world’s largest company as a result.
However, another company in the top 10 has the potential to do that in 2026.
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Of the 10 largest companies in the world, Broadcom (NASDAQ: AVGO) is the most likely to be left off the list. It’s not as well-known as its peers, but that could change in 2026 once its AI computing units start to become more popular.
Image source: Getty Images.
Broadcom’s products tackle a different niche than Nvidia’s
Broadcom does a lot of different things as a company. However, the market is focusing on one area in particular to drive the stock higher in 2026 and beyond: Custom AI chips. Nvidia makes broad-purpose computing units that can be deployed in a wide variety of situations. This flexibility was key in the early days of AI, as nobody knew what workloads would look like and how they would evolve. While we’re still uncertain of exactly where AI is headed, some form factors have started to take shape.
This allows for specialized computing units to be deployed, and that’s where Broadcom comes in. Broadcom is partnering directly with AI hyperscalers to design its own AI computing chip, known as an ASIC (application-specific integrated circuit).
ASICs have been around for a long time, but Broadcom is the first to adapt them into the AI realm. When a workload is configured to the architecture of the chip, it can outperform broad-purpose computing units like those from Nvidia at a lower price point. The catch is, you’re locked into running that workload on that computing unit.
This specialty makes these chips suited for tasks like generative AI inference, where the inputs are fairly standardized. While they may not be a great fit for training AI models due to the wide variety of inputs they can see, they can still work in that application as well.
The most famous example of a custom AI chip is Google’s tensor processing unit (TPU). The TPU has allowed Google to catch up to its competition in generative AI throughout 2025, and could be the reason why it leads in 2026. Furthermore, Google may start selling the TPU because it’s a great alternative to more expensive GPUs from Nvidia, which could also boost Broadcom’s revenue stream.
For the first quarter, Broadcom’s management expects revenue from AI semiconductors to double year over year. As more custom AI chips launch throughout the year and into 2027, this will lead to an incredibly fast growth rate for Broadcom, allowing it to outperform Nvidia, at least from a growth standpoint.
This success will propel Broadcom into a market leadership position alongside Nvidia. By the end of 2026, I think a lot more people will be familiar with Broadcom, and I think now is still a great time to buy the stock.
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Keithen Drury has positions in Broadcom and Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.