Broadcom Named Top Chip Pick Over Nvidia at Jefferies
An analyst note cited Broadcom's "greater magnitude of estimate upside" from custom AI chip deals.
Analyst's New Pick
Jefferies analyst Blayne Curtis moved Broadcom (AVGO) to his top pick in the semiconductor space, replacing longtime AI leader Nvidia (NVDA).
Curtis wrote that while Nvidia "remains the leader," Broadcom "has a greater magnitude of estimate upside". The reasoning is based on a structural shift in the market where Nvidia's largest customers are now aggressively funding Broadcom to develop custom-designed chips, known as ASICs (Application-Specific Integrated Circuits).
The Custom ASIC Trend
The analyst note stated that ASICs, which are custom-built for specific AI tasks, "have hit an inflection point". This is driven by hyperscale companies …
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