This Trillion-Dollar Stock Could Be the Next Nvidia

• Alphabet and Broadcom collaborated connected tensor processing units.

• Meta Platforms whitethorn beryllium purchasing TPUs from Alphabet.

• Broadcom's concern isn't arsenic focused connected artificial quality (AI) gross arsenic Nvidia.

• 10 stocks we similar amended than Broadcom ›

Nvidia (NASDAQ: NVDA) has been 1 of the champion stocks to ain since the AI gyration kicked disconnected successful 2023. However, determination are questions astir its dominance heading into 2026. There is rising contention from AMD, but a comparatively unheralded rival could beryllium challenging Nvidia.

Who is this rival that is making headlines successful caller weeks? It's not Alphabet and its high-powered Tensor chips; it's Broadcom (NASDAQ: AVGO).

Nvidia makes graphics processing units (GPUs), which are well-suited for immoderate task that requires accelerated computing. These devices were the apical picks for galore companies looking to bid artificial quality workloads, but they are incredibly expensive. While AMD has offered a cheaper alternative, their supporting hardware and bundle are not the aforesaid arsenic Nvidia's. However, there's different enactment galore companies are turning to.

Broadcom's customized AI accelerators are a antithetic benignant of computing portion than the GPU. Instead of being suited to tally a wide assortment of workloads, these customized AI accelerator chips are tailored to tally a circumstantial benignant of workload. This tin summation show and thrust down cost, astatine the terms of flexibility.

As we determination toward an inference-heavy computing powerfulness deployment, the workloads are reasonably known, truthful it doesn't necessitate arsenic galore Nvidia GPUs to bid the AI model. In their place, companies tin deploy customized AI chips from Broadcom.

Broadcom and Alphabet collaborated to plan the promising tensor processing units (TPUs). Alphabet has been utilizing these for a agelong clip for interior use. These days, outer clients tin adjacent rent entree to them via its unreality computing platform, Google Cloud.

However, that entree whitethorn beryllium changing. Reportedly, Alphabet is successful talks with Meta Platforms to merchantability billions of dollars worthy of TPUs to them. While this volition payment Alphabet, it besides boosts Broadcom. It gets a chopped of each TPU Alphabet acquisition (or sale) due to the fact that it is simply a codesigner of the chip.

It's chartless if this woody volition spell done oregon however overmuch Meta volition buy, but if it does travel to fruition, don't beryllium amazed if deals similar this commencement to get announced much frequently. This could besides thrust different AI hyperscalers to enactment straight with Broadcom to spec successful their customized AI chip, which volition further boost its sales.