Custom AI Chips Are Coming for Nvidia's Crown. Here Are 2 Companies Quietly Cashing In.

Broadcom and Marvell Technology are emerging as major beneficiaries of the custom AI chip buildout by hyperscalers looking to diversify beyond Nvidia. Broadcom reported AI revenue of $10.8 billion in its latest quarter, up 143% year-over-year, and disclosed over $30 billion in booked AI orders. Marvell's data center segment grew 27% as cloud providers tap the company to design proprietary silicon for their infrastructure.

The custom chip opportunity is scaling fast. Marvell expects its custom silicon business to surpass $10 billion in annual revenue by fiscal 2029, signaling sustained demand as Google, Amazon, Microsoft, and Meta build in-house accelerators to complement or replace Nvidia GPUs. Both Broadcom and Marvell command premium valuations reflecting this growth, but customer concentration remains a risk—hyperscaler capex cuts or design-win losses could swing revenue materially.

The dynamic puts pressure on Nvidia's data center dominance while creating a parallel revenue stream for chip design specialists with the engineering scale to support custom ASIC development.