Nvidia Faces Market Challenges as Broadcom Rises in AI Chip Sector

Nvidia's stock enters correction territory while Broadcom's custom AI chips fuel a surge in its market value.

• Nvidia's stock has dropped 17% from its November high, entering correction territory, as concerns grow about slowing AI spending and rising competition.
• Broadcom's stock has surged, gaining over 120% this year, driven by a 220% increase in AI-related revenue and strong demand for its custom AI chips.
• Analysts estimate Microsoft purchased more Nvidia Hopper GPUs than any other company in 2024, but rivals like Amazon and Google are investing in custom AI chips to reduce reliance on Nvidia.
• Delays in Nvidia's AI chip production, including its Thor automotive chip, have led some customers, such as Chinese automakers, to explore alternatives.
• While Nvidia remains a dominant player with a significant market share in AI chip training, competitors like Broadcom and Marvell are gaining traction in the growing custom AI chip market.

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