Google just told the market it could spend as much as $185 billion on capital expenditures this year, nearly double last year. Stocks reacted like someone handed out free GPUs: Broadcom jumped about 6% after hours, Nvidia rose ~2%. Simple math - more datacenters, more chips, more revenue for the supply chain.**AI finds religion:**Google is doubling down on custom hardware (TPUs) instead of relying only on off-the-shelf Nvidia silicon. Broadcom is in the middle of that build, helping design and ship the TPU racks Google uses for big models.
For Nvidia, this isn’t a cold shoulder. Google still uses Nvidia chips alongside TPUs, and a boom in datacenter buildouts generally fattens demand for accelerators, networking gear, and everything in between. The short version: Broadcom gets a rarer, lucrative slice of the custom-chip pie, Nvidia keeps selling the mainstream slices, and the hyperscalers win the compute arms race.
If you sell to big cloud builders, start practicing your elevator pitch and dust off those NDAs. This is where the real money lives.
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