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Nvidia CEO Downplays Broadcom Chip Threat
2 Dec
Summary
- Nvidia CEO states their GPUs are more versatile than custom ASICs.
- Google's Gemini 3 AI model was trained on chips co-designed by Broadcom.
- Analysts remain bullish on both Nvidia and Broadcom stocks.
Nvidia CEO Jensen Huang recently stated that Broadcom's custom application-specific integrated circuits (ASICs) do not present a threat to his company's dominance in the AI chip market. Huang highlighted that Nvidia's graphics processing units (GPUs) possess a much higher degree of versatility and fungibility, enabling them to cater to a wider array of industries beyond specialized AI tasks like chatbots.
This perspective comes as Google's latest AI model, Gemini 3, was trained on tensor processing units (TPUs) co-designed by Broadcom. While this collaboration underscores Broadcom's growing influence, Huang maintains that Nvidia's all-purpose GPUs remain the industry's premier commodity. He pointed to a new multi-year partnership between Nvidia and Synopsis to develop AI-focused tools as evidence of Nvidia's expansive capabilities.
Despite the competitive landscape, financial analysts express continued confidence in both tech giants. Morgan Stanley and Bank of America have both raised price targets for Broadcom, citing the success of Gemini 3 and potential for TPU rentals. Similarly, Nvidia's price target was also increased, with analysts affirming its position as a dominant force in AI, though noting its GPUs are considered a generation ahead of Google's custom chips.
