Broadcom (AVGO) AI ASIC Sales Surge, Analysts See Strong Growth and Value Over Nvidia (NVDA)

Broadcom (AVGO) is emerging as a rapidly growing player in the AI chip market, with analysts identifying its custom Application-Specific Integrated Circuits (ASICs) as a strategic investment opportunity over Nvidia's (NVDA) general-purpose GPUs. Broadcom's focus on cost-effective AI acceleration for large-scale deployment has attracted major clients like Google (GOOGL), Meta (META), OpenAI, and Anthropic. Broadcom's AI chip sales surged 65% to $20 billion in fiscal year 2025 (ending November 2025), representing 31% of total revenue. The company projects AI chip revenue to reach at least $100 billion by fiscal year 2027, comprising over 58% of total anticipated revenue. Analysts project Broadcom's revenue and EPS to grow at 53% and 66% CAGRs respectively from FY2025-2028. Its forward P/E of 25x is considered attractive, contrasting with Nvidia (NVDA)'s 46% CAGRs for revenue and EPS (FY2026-2029) and its 16x next year's estimated profit. Broadcom's estimated adjusted EBITDA multiple of 16x further underscores its relative value.