- Nvidia (NVDA) CEO Jensen Huang questions Broadcom’s (AVGO) $60 billion to $90 billion AI chip market forecast for 2027, doubting their ASIC approach’s competitiveness against Nvidia’s in-house AI chip expertise, as Nvidia stock rose 2% to $117.68 Wednesday.
- Huang unveiled Nvidia’s AI chip roadmap at GTC 2025, featuring Blackwell Ultra in H2 2025, Vera Rubin in H2 2026, and Vera Rubin Ultra in H2 2027, projecting a $1 trillion data center hardware market.
- Despite a 5% two-day stock dip post-GTC, Wall Street analysts like Citi’s Atif Malik reaffirmed Nvidia’s leadership with a $163 price target, countering concerns about AI demand as Huang dismissed Broadcom’s strategy.
According to a Barron’s report, Nvidia (NVDA) CEO Jensen Huang has voiced skepticism about Broadcom’s (AVGO) ability to gain significant traction in the AI chip market. He questioned CEO Hock Tan’s projection of a $60 billion to $90 billion opportunity for Broadcom’s top three customers by fiscal 2027. Huang highlighted Nvidia’s deep expertise in AI chip development, contrasting it with Broadcom’s position as an ASIC provider that designs custom chips for other companies. He remarked, ‘They don’t know what chip is being built,’ casting doubt on the competitiveness of Broadcom’s offerings compared to Nvidia’s well-established portfolio.
This rivalry comes as Nvidia’s stock rebounded nearly 2% to $117.68 by midday Wednesday, recovering from a 5% two-day decline caused by lukewarm market reactions to its GTC 2025 keynote. The stock’s recovery reflects Nvidia’s resilience amid broader market challenges.
Huang’s confidence stems from Nvidia’s commanding position in AI infrastructure, reinforced during his Tuesday GTC keynote in San Jose, where he unveiled a robust roadmap: the Blackwell Ultra chip launching in the second half of 2025, the Vera Rubin superchip in the second half of 2026, and the Vera Rubin Ultra in the second half of 2027. He reiterated his bold forecast of a $1 trillion data center compute hardware market, asserting, “I am fairly certain we’re going to reach that very soon.” This vision resonated with Wall Street, as Citi (C) analyst Atif Malik reiterated a ‘Buy’ rating and a $163 price target, applauding Nvidia’s expanding leadership.
Separately, Bernstein also maintained a ‘Buy’ rating on Nvidia, setting a higher price target of $185.00 in a note released today.
Despite concerns over long-term AI demand and efficiency trends potentially curbing hardware needs, Huang’s dismissal of Broadcom’s ASIC strategy – warning that “a lot of ASICs get canceled” unless they outshine the best – underscores Nvidia’s edge in building and scaling AI training chips.
The stock’s recovery reflects investor trust in Nvidia’s trajectory, buoyed by Huang’s strategic clarity and the company’s dominance in GPUs, even as Broadcom aims to carve out its “fair share” in a fiercely competitive landscape. There’s no question that Nvidia’s focus on innovation and market foresight positions it as a formidable force, with Huang’s remarks signaling both a defense of its turf and a challenge to rivals betting on custom solutions.
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