Shares of Broadcom Inc. (AVGO, Financial) rose 11%, closing at $250, on Monday after the stock jumped 24% on Friday. Following the momentum, Broadcom's market capitalization rose above $1 trillion, making it the first corporation to do so.
On the other hand, Nvidia's (NVDA, Financial) shares fell by 1.7%, trailing off to finish at $132. Nvidia recorded its third straight day of losses, dragging its market cap closer to $3.232 trillion on Monday and pushing it out of the position of the U.S. company to Microsoft's (MSFT, Financial) position.
Stocks performing differently also suggest it's becoming more likely Broadcom will attack a market dominated by Nvidia in AI chips. Last month, Broadcom said it was working with top cloud service providers such as Google, Meta Platforms, and ByteDance to create AI chips. Hock Tan, CEO, said that these partners will use roughly 1 million custom AI chips per year by 2027 in their data centers.
Reports also assert that Apple (AAPL, Financial) is working with Broadcom to create an AI server chip, internally referred to as 'Baltra,' that will go into mass production by 2026. The maneuver aims to lower dependence on NVIDIA's processors.
What's notable about these developments is how they point to Broadcom as a growing player in the AI chip market, pitted more squarely against giants such as NVIDIA.
