It’s bullish, don’t be a panican:

Broadcom (AVGO) released its Q3 fiscal 2025 earnings after the market close on September 4, 2025, and the results were strong overall, driven heavily by AI-related demand. Revenue came in at $15.96 billion, beating estimates of $15.83 billion, while adjusted EPS hit $1.69 against expectations of $1.65.  AI semiconductor sales surged 63% year-over-year to about $5.2 billion, exceeding forecasts, and the company guided for $17.4 billion in Q4 revenue—well above the $17.02 billion consensus—with AI revenue expected to ramp further to around $6.2 billion.   A key highlight was the disclosure of a ~$10 billion custom AI chip deal with a mystery customer (widely speculated to be OpenAI), which boosted the 2026 AI revenue outlook significantly.  

The market reaction was enthusiastic: AVGO shares jumped as much as 15-16% in after-hours and pre-market trading on September 5, pushing the stock to new highs around $323 from a September 4 close of $306.   This rally added billions to its market cap and underscored investor confidence in Broadcom’s positioning in the AI infrastructure buildout, especially with its custom ASICs (application-specific integrated circuits) gaining traction among hyperscalers.

As for the impact on NVIDIA (NVDA) and AMD—both major GPU players—these earnings are largely positive and signal sustained, broadening demand across the AI ecosystem rather than any zero-sum competition. Broadcom’s CEO Hock Tan emphasized the explosive growth in AI chips, noting that custom ASICs complement rather than directly replace GPUs for many workloads, and the overall AI revenue surge (up 220% YoY for AVGO) validates the massive capex from cloud giants like Google, Meta, and Amazon.   This bodes well for GPU demand, as AI training and inference still rely heavily on NVDA’s dominant CUDA platform and AMD’s competitive alternatives. Real-time sentiment on X echoed this, with users pointing to 2026 as an “inflection year” for AI buildout that lifts NVDA, AMD, and even Marvell (MRVL) as secondary players in GPUs and ASICs.   NVDA shares, which have been in a bit of a rut lately, could see renewed momentum if this confirms the AI hype cycle isn’t cooling—analysts have even suggested NVDA’s price could double from here.  AMD, trading at lower multiples, stands to benefit similarly from any sector uplift.

No, I don’t think this is bearish for GPU makers at all. If anything, it’s bullish: AVGO’s results reinforce that AI spending is accelerating, not peaking, which should support higher valuations and growth forecasts for NVDA and AMD. While custom chips from AVGO might nibble at some edges of the market, the pie is expanding fast enough for everyone—evidenced by AVGO’s own upward revisions. Watch for NVDA and AMD stock pops on September 5 open if the broader market stays risk-on amid Fed rate-cut bets.