Finance

AI Infrastructure: How Nvidia, Broadcom, and TSMC Are Shaping the Future of AI Dominance

Nvidia, Broadcom, and TSMC are key players in the growing AI infrastructure market, each with unique strengths.

byAndres Castro

November 2, 2025, 12:12 PM

The Nvidia company logo displayed on a mobile device. By gguy / Shutterstock.com

Executive Summary

Nvidia leads the AI infrastructure market through its CUDA software platform and GPU technology, establishing a significant barrier to entry for competitors.

Broadcom is expanding significantly in custom AI chip (ASIC) design for hyperscalers like Alphabet, Meta, and ByteDance, with projections indicating a market opportunity of $60 billion to $90 billion by fiscal 2027.

Taiwan Semiconductor Manufacturing (TSMC) plays a foundational role as the primary foundry for advanced AI chips, benefiting from the growth of both GPU and ASIC markets due to its technological expertise and indispensable manufacturing position.

The Story So Far

The artificial intelligence (AI) infrastructure market is undergoing significant expansion, driven by the indispensable roles of key players like Nvidia, which dominates with its proprietary GPU technology and CUDA software platform. Broadcom is capitalizing on the demand for custom AI chips (ASICs) by collaborating with major data center operators, securing substantial orders. Taiwan Semiconductor Manufacturing (TSMC) serves as the foundational manufacturing partner for both GPU and ASIC developers, positioning it as an essential and powerful entity in the production of advanced AI chips.

Why This Matters

The robust expansion of the AI infrastructure market is creating immense opportunities and strategic importance for Nvidia, Broadcom, and TSMC, effectively positioning them as foundational enablers of future AI development. Nvidia’s entrenched CUDA platform and GPU technology establish a high barrier to entry, while Broadcom is poised for significant revenue growth by designing custom AI chips for major hyperscalers and OpenAI. Meanwhile, TSMC’s indispensable role as the leading advanced chip foundry ensures it benefits from all facets of AI chip production, irrespective of market shifts, solidifying its pricing power and critical role in scaling AI capabilities.

Who Thinks What?

Nvidia maintains market leadership in AI infrastructure through its proprietary CUDA software platform and GPU technology, which creates a significant barrier to entry for competitors.

Broadcom is carving out a niche by designing custom AI chips (ASICs) for major data center operators and has secured substantial agreements with clients like OpenAI.

Taiwan Semiconductor Manufacturing (TSMC) is positioned to benefit regardless of whether GPUs or ASICs dominate the AI chip market, as it serves as the indispensable primary foundry for advanced chip manufacturing for companies like Nvidia and Broadcom.

The artificial intelligence (AI) infrastructure market continues to experience significant growth, with key players Nvidia, Broadcom, and Taiwan Semiconductor Manufacturing (TSMC) each holding strategic positions. As of November 2, 2025, these companies are identified as central to the ongoing expansion of AI capabilities, leveraging their distinct technological advantages and market leadership.

Nvidia’s Market Leadership

Nvidia maintains its leadership in the AI infrastructure sector, primarily through its widely adopted CUDA software platform. This platform is where much of the foundational AI code for graphics processing units (GPUs) is developed, creating a substantial barrier to entry for competitors. The flexibility of GPUs, combined with Nvidia’s proprietary NVLink interconnect system, further solidifies its market position amid rapid AI innovation.

Broadcom’s Custom Chip Niche

Broadcom is carving out a significant niche by assisting major data center operators, known as hyperscalers, in designing custom AI chips or application-specific integrated circuits (ASICs). The company has collaborated with clients such as Alphabet, Meta Platforms, and ByteDance on custom ASIC development. Projections indicate this segment could represent a market opportunity of $60 billion to $90 billion by fiscal 2027.

Broadcom has also secured agreements with OpenAI for custom AI accelerators through 2029, potentially exceeding $100 billion annually, alongside a $10 billion order from an undisclosed customer for the upcoming year. This growth potential is substantial when compared to the company’s current total revenue, which is on pace to be just over $63 billion this year.

TSMC’s Foundational Role

Taiwan Semiconductor Manufacturing (TSMC) stands to benefit irrespective of whether GPUs or ASICs dominate the AI chip market, as stated by CEO C.C. Wei during the company’s third-quarter earnings call. TSMC’s role as the primary foundry for advanced chip manufacturing means it produces chips for companies like Nvidia, Broadcom, and Amazon. Its technological expertise and scale enable it to consistently reduce node sizes while maintaining high yields, positioning it as an indispensable partner with strong pricing power.

Outlook

As AI infrastructure spending continues its robust expansion, these three companies are strategically positioned to capitalize on the sustained demand. Their respective strengths in GPU technology, custom chip design, and advanced manufacturing underscore their critical roles in the future development of artificial intelligence.