Did Nvidia Just Lose Its Spot as Wall Street’s AI Chip Darling? JPMorgan Says This ‘Overall Top Pick’ Is Better.

Broadcom ASIC Surge: Why Wall Street Is Re‑evaluating Nvidia’s Dominance in the AI Chip Market of 2025 { "@context": "https://schema.org", "@type": ["Article","FinancialAnalysis"], "headline": "Broadcom ASIC Surge: Why Wall Street Is Re‑evaluating Nvidia’s Dominance in the AI Chip Market of 2025", "description": "Broadcom ASIC leads AI inference in 2025, eclipsing Nvidia. Explore backlog dynamics, cost advantages, and portfolio strategies for enterprise leaders.", "author": {"@type":"Organization","name":"TechInsight Media"}, "datePublished": "2025-12-20", "publisher": { "@type": "Organization", "name": "TechInsight Media", "logo": {"@type":"ImageObject","url":"https://techinsight.com/logo.png"} } } Broadcom ASIC Surge: Why Wall Street Is Re‑evaluating Nvidia’s Dominance in the AI Chip Market of 2025 Executive Summary Broadcom (AVGO) has eclipsed Nvidia (NVDA) as the overall top pick for AI-chip investors, driven by a $73 billion order backlog and superior inference efficiency. Nvidia’s GPU‑centric strategy remains critical for training but faces higher cost‑per‑token and power consumption, limiting its appeal to hyperscalers focused on inference scale. For institutional investors and portfolio managers, the shift signals a rebalancing of risk exposure: Broadcom offers high‑margin ASIC contracts with concentrated hyperscaler demand, while Nvidia’s broader R&D spend and capital raise increase leverage risk. Enterprise technology leaders should consider hybrid silicon architectures—combining GPUs for training and ASICs for inference—to optimize total cost of ownership (TCO) and maintain vendor flexibility. Market Impact Analysis: Backlog, Valuation, and Sentiment Shift The most concrete indicator of Broadcom’s ascendancy is its six‑quarter AI order backlog of $73 billion—double Nvidia’s $35 billion. A 30 % YoY increase in AI orders for AVGO versus an 18 % rise for NVDA signals stronger demand traction for ASIC solutions among hyperscalers such as Google and Microsoft.