GPU vs. Custom ASIC; Broadcom says $60B-$90B+ Opportunity in 2027
It’s no longer just a GPU-driven world. While Nvidia’s GPUs continue to dominate AI workloads, cracks are forming in the market’s reliance on this single technology as the limitations of general-purpose GPUs become more apparent.
That is where our clients are asking about ASICs market. ASICs—custom-designed chips purpose-built for specific AI tasks. These chips are not only smaller and faster but also consume significantly less power. ASICs are emerging as the tailored solution to bridge the gap between performance and efficiency, challenging the GPU’s long-standing dominance in the AI hardware ecosystem.
In 2024, below is the GPU / Custom ASIC split look like:
Nvidia and Google’s TPU (powered by Broadcom) have dominated AI deployments so far, but the landscape is set to shift in the next 12–18 months. Custom solutions from Broadcom and Marvell are gaining traction at tech giants like Google, Meta, Bytedance AI, Amazon, and Microsoft, signaling a broader diversification in AI hardware strategies.
In this article, we will go through:
The Rise of Custom ASICs: Technology and Market Projections
GPU vs ASIC: Weighing the Pros and Cons for AI Workloads
ASIC as an Option to Enhance Reasoning Performance
Software Ecosystem and Tooling
Key Players in the ASIC Market
Broadcom’s 2025 and 2026 RoadMap with 3 HyperScaler Customers
Challenging Nvidia's Dominance: The Battle for AI Hardware Leadership
Supply Chain Constraints, Foundry Capacity & Geopolitical Risks
Please note: The insights presented in this article are derived from confidential consultations our team has conducted with clients across private equity, hedge funds, startups, and investment banks, facilitated through specialized expert networks. Due to our agreements with these networks, we cannot reveal specific names from these discussions. Therefore, we offer a summarized version of these insights, ensuring valuable content while upholding our confidentiality commitments.
The Rise of Custom ASICs: Technology and Market Projections
An ASIC is a highly specialized computer chip designed to perform a specific application or task. Unlike general-purpose processors like CPUs or GPUs, ASICs are purpose-built to execute a single function with exceptional efficiency and speed.
ASIC market is experiencing growth, driven by the increasing demand for customized solutions across various industries. According to Research and Markets, the ASIC market was valued at approximately $24.6B in 2023 and is projected to