Broadcom, a custom chip maker for Google, Meta, OpenAI, and Anthropic, is growing its AI business faster than Nvidia but trades at a cheaper valuation—making it an overlooked opportunity in the AI boom.

What happened: Broadcom's AI chip sales surged 65% to $20 billion（約3.2兆円） in fiscal 2025 (ended last November), making up 31% of its revenue. The company expects that figure to rise to at least $100 billion（約16兆円） in fiscal 2027, accounting for more than 58% of its projected revenue. Unlike Nvidia's general-purpose GPUs, Broadcom builds custom chips (ASICs) tailored for specific AI tasks, which large cloud providers can use to reduce infrastructure costs.

Why it matters: Broadcom trades at 25 times next year's earnings, making it one of the market's cheapest mega-cap AI stocks relative to its growth rate. Analysts expect Broadcom's revenue and EPS to grow at CAGRs of 53% and 66%, respectively, from fiscal 2025 to fiscal 2028—faster than Nvidia's projected 46% CAGR for revenue and EPS over a similar timeframe. This gap between growth rate and valuation suggests the market is overlooking Broadcom's potential.

What to watch: Broadcom expects AI chip sales to reach at least $100 billion（約16兆円） by fiscal 2027. The company also trades at 16 times next year's adjusted EBITDA, reflecting its competitive positioning as hyperscale customers (large cloud providers) ramp up purchases of custom AI accelerators to reduce their long-term dependence on Nvidia.