Broadcom’s AI Chip Leadership Gains Momentum with New Research

Broadcom US11135F1012

Recent market analyses underscore Broadcom's strengthening position within the specialized artificial intelligence semiconductor sector. Two separate reports highlight the company's projected market share dominance and improving cost competitiveness, painting a bullish picture for its future in powering AI infrastructure.

A study released by Counterpoint Research on January 28, 2026, delivers a striking forecast. Shipments of AI server ASICs among the top ten hyperscale companies are anticipated to triple between 2024 and 2027. Within this rapidly expanding market, Broadcom is identified as the dominant design partner, commanding an estimated 60 percent share by 2027.

This leading role is attributed to the strategic shift by major cloud providers—including Google, Amazon Web Services, Microsoft, Meta, and Apple—toward custom AI chips for specialized training and inference workloads. A key example is Google's Tensor Processing Units (TPUs), which power models like Gemini, with Broadcom serving as a critical design partner.

Key Data Points from the Report:
* Broadcom's projected 2027 market share: approximately 60%
* ASIC shipments expected to triple from 2024 to 2027
* Marvell Technology's share seen declining to ~8% despite a doubling of its shipments
* New competitive dynamics emerging from a Google-MediaTek alliance

Goldman Sachs Analysis Highlights Cost Parity

Supporting this outlook, Goldman Sachs reaffirmed its positive stance on Broadcom on January 20, 2026, following a detailed cost analysis of various AI chip solutions. The investment bank views Broadcom, alongside Nvidia, as a primary beneficiary of escalating AI infrastructure expenditure.

A notable finding from the analysis concerns cost efficiency. Google's latest TPU v7 is shown to reduce inference cost per token by roughly 70 percent compared to its TPU v6 predecessor. This performance brings its cost profile to a level comparable with—or even slightly below—that of Nvidia's GB200 NVL72 system. For context, Goldman's report indicates that alternatives like Amazon's Trainium and AMD's accelerators achieved only about a 30 percent cost reduction.

Upcoming Financials and Strategic Moves

Broadcom's recent corporate actions set the stage for its next phase. In early January 2026, the company issued bonds worth $4.5 billion. The capital raised is intended to fund general corporate purposes and to repay debt associated with the VMware acquisition.

Investor attention now turns to the upcoming quarterly results scheduled for March 4, 2026. Market participants are expected to scrutinize the revenue trajectory of the AI chip division and assess the performance of the infrastructure software segment following the integration of VMware.

@ boerse-global.de | US11135F1012 BROADCOM’S