The latest theme in the AI trade has been simple: Google’s ecosystem is winning, and anything tied to OpenAI is not. Broadcom $AVGO ( ▲ 1.98% ) has been one of the biggest beneficiaries of that split, thanks to its role in codesigning the TPUs that power Google’s Gemini 3. Nvidia $NVDA ( ▲ 3.74% ) , meanwhile, has been under pressure as investors worry that the rise of custom chips could chip away at its AI dominance.
According to Bank of America analyst Vivek Arya, the stock market is already pricing in a major shift. He notes that Nvidia now trades at its widest ever forty percent valuation discount to Broadcom, a sharp break from the slight discount or premium it’s historically held. In his view, consensus expectations are implicitly shifting more than ten points of future AI chip market share toward Broadcom.
That dramatic divergence is taking a breather today. Nvidia is ticking higher, while Broadcom is slipping, as traders reassess just how much of the AI chip pie Google’s partner can realistically claim.