2 Artificial Intelligence (AI) Stocks to Buy as Demand for Custom Chips Soars

Broadcom reported 143% year-over-year growth in AI chip sales, reaching $10.8 billion, and expects over 200% growth next quarter as hyperscalers build custom silicon to reduce reliance on Nvidia GPUs. Marvell Technology posted record revenue of $2.4 billion with accelerating growth projected through fiscal 2027.

Both AVGO and MRVL are capturing orders from Alphabet, Amazon, and Microsoft as these tech giants increase capex spending on proprietary AI accelerators. The shift reflects hyperscalers' push to optimize workloads beyond general-purpose GPUs, opening a massive addressable market for custom chip designers.

Broadcom's sequential guidance—more than doubling AI chip revenue quarter-over-quarter—signals sustained momentum in ASIC design wins. Marvell's fiscal 2027 acceleration timeline suggests multi-year visibility into cloud infrastructure buildouts.

The custom chip wave represents a structural shift in AI infrastructure spending, with both companies positioned as critical partners to the largest cloud buyers. While Nvidia dominates training workloads, AVGO and MRVL are carving out inference and specialized compute niches.