CNBC Televisionยท2025-07-24 16:16Market Trends & Industry Dynamics - Google's increased capital expenditure (capex) forecast by $10 billion to $85 billion for the year is boosting shares of Nvidia and Broadcom [1] - Google and Broadcom have been collaborating since 2016 to develop Google's AI chips, known as TPUs [2] - Reports suggest Google and Meta are considering MediaTek for cheaper AI chips, with Meta potentially using MediaTek for an AI inference chip by 2027 [3] - The custom chip race is intensifying for both Nvidia and Broadcom as MediaTek gains traction [7] Competitive Landscape & Potential Risks - MediaTek's cost advantage in custom silicon could put pressure on Broadcom's margins and increase competition in the coming years [4] - Custom chips (ASICs) can offer greater efficiency for specific data center tasks, potentially challenging Nvidia's GPU dominance as AI workloads mature [5] - Nvidia's CEO downplays the threat of custom chips, emphasizing Nvidia's scale and CUDA software advantage [6] Company Strategy & Outlook - Broadcom remains confident due to its strong pipeline, despite the increasing competition in custom chips [6]