Custom AI Chips (ASICs) Projected to Surpass GPUs by 2027, Broadcom Emerges as Biggest Winner

According to JPMorgan, custom AI chips (ASICs) are projected to surpass graphics processing units (GPUs) in global shipment volume by 2027, marking a significant shift in the industry landscape. The bank estimates that ASICs will account for 53% of total AI chip shipments in 2027, up from an estimated 42% in 2026, officially displacing GPUs for the first time.

ASIC shipments are expected to grow at an annual rate of 109% in 2026, compared to just 39% for GPUs, according to the report. Major cloud providers including Google, Amazon Web Services, Microsoft, and Meta are accelerating deployment of proprietary chips—Google's TPU architecture reaching its seventh generation, AWS expanding Trainium production, Microsoft advancing Maia chips, and Meta pushing its MTIA roadmap. JPMorgan identifies Broadcom as the primary beneficiary, estimating the semiconductor company's AI ASIC and networking revenue will more than double from approximately 60 billion dollars in 2026 to over 150 billion dollars in 2027.