This small AI company has the potential to take share away from Broadcom in custom AI chips.

Broadcom ( AVGO -0.48% ) is turning out to be one of the biggest beneficiaries of the artificial intelligence (AI) chip boom after Nvidia . That's because the application-specific integrated circuits (ASICs) that Broadcom designs have been a huge hit among cloud service providers looking for cheaper alternatives to the expensive graphics cards that Nvidia sells.

Not surprisingly, there are rumors that Nvidia has established a new department to focus on ASICs. The custom nature of these chips means that they can be programmed to perform specific tasks, which is why they are now gaining traction for AI inference applications.

The overwhelming performance per watt advantage that ASICs ar

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