Broadcom Builds Custom Chips for Google, Meta, Anthropic, and OpenAI. At 25 Times Forward Earnings, It's the Cheapest Mega-Cap AI Stock Nobody Talks About.

Broadcom (AVGO) is building custom application-specific integrated circuits (ASICs) for Google, Meta, OpenAI, and Anthropic, positioning the chipmaker as a critical AI infrastructure play beyond Nvidia's dominance. The company's AI chip sales surged 65% to $20 billion in fiscal 2025, with management projecting revenue to hit $100 billion by fiscal 2027.

Despite this growth trajectory, Broadcom trades at just 25 times forward earnings—a valuation discount compared to peers in the AI semiconductor space. The company is forecasting a 66% earnings-per-share compound annual growth rate through fiscal 2028, driven by demand for custom chips tailored to specific AI workloads at hyperscale data centers.

The custom ASIC strategy differentiates Broadcom from GPU-focused competitors. Major tech platforms are increasingly designing proprietary chips optimized for their AI models, and Broadcom serves as the go-to manufacturing partner. This positions the company to capture spending across multiple AI architectures rather than betting on a single approach.