Counterpoint Research reports that the race to develop custom AI silicon is accelerating, with hyperscalers scaling their internal chips to meet the soaring demand. Hyperscalers Expanding Custom AI Chip Deployments Top cloud and AI providers, such as Alphabet Inc. (NASDAQ: GOOGL) with Google; Amazon. com, Inc. (NASDAQ: AMZN) through Amazon Web Services; Microsoft Corp (NASDAQ: MSFT); OpenAI; ByteDance; and Apple Inc. (NASDAQ: AAPL), are rapidly increasing their use of AI server compute Application-Specific Integrated Circuit (ASIC) systems. These specialized chips handle training and inference workloads, according to Counterpoint Research. Don’t Miss: The AI Marketing Platform Supported by Insiders from Google, Meta, and Amazon — Investment Opportunity at $0. 85/Share Would you invest if Jeff Bezos backed a new fund targeting 7-9% yield with monthly dividends? Projections show that shipments of AI server compute ASICs among the leading 10 hyperscalers will triple from 2024 to 2027.

This growth is driven by the surging demand for Google's Tensor Processing Unit (TPU) infrastructure that supports Gemini, the ongoing expansion of AWS Trainium clusters, and increased volume from Meta Platforms Inc. (NASDAQ: META) with its MTIA chips, alongside Microsoft’s Maia chips, as these companies broaden their internal silicon development. Broadcom Dominates While Competition Grows Counterpoint forecasts that Broadcom Inc. (NASDAQ: AVGO) will maintain its position as the top AI server compute ASIC design partner, capturing about 60% market share in 2027 despite mounting challenges from the expanding Google–MediaTek alliance. Meanwhile, Marvell Technology Inc. (NASDAQ: MRVL) is expected to face pressure on design wins, with its design services share likely falling to around 8% by 2027—even though its shipment volumes are projected to double in that period. Trending: Blue-chip art has outperformed the S&P 500 since 1995, and fractional investing is now enabling everyday investors to access this institutional asset class. Google TPUs Continue to Anchor Market Dynamics According to Counterpoint, Google’s TPU fleet will remain central to industry volumes, as increasing compute demands for training and serving next-generation Gemini models drive sustained internal silicon investments. Although Google’s market share may decline somewhat as the total addressable market grows and competitors scale their chips, TPUs will continue to be the core foundation of AI server compute ASIC deployments. The market is undergoing structural change. AI server compute ASIC shipments are shifting from a concentrated duopoly dominated by Google and AWS in 2024 toward a more diversified landscape by 2027, Counterpoint states. See Also: Wall Street's $12B Real Estate Manager Opens Access to Individual Investors — Without Crowdfunding Middlemen The firm notes significant contributions from Meta and Microsoft as they accelerate internal chip initiatives. This trend reflects a wider hyperscaler strategy aimed at reducing reliance on merchant GPUs and enhancing performance per watt through custom silicon optimized for specific workloads. On the manufacturing side, Taiwan Semiconductor Manufacturing Company Ltd (NYSE: TSM) remains the leading foundry, responsible for nearly all wafer fabrication for the top 10 players’ AI server compute ASICs, covering front-end and most back-end production, according to Counterpoint. Read Next: Americans With a Financial Plan Can 4X Their Wealth — Get Your Personalized CFP Pro Plan Photo: Shutterstock UNLOCKED: Receive 5 NEW TRADES EACH WEEK. Click to get top trade ideas daily plus unlimited access to advanced tools and strategies for market advantage. Latest stock analysis from Benzinga: APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article, “Broadcom Set To Dominate Custom AI Chip Market With 60% Share By 2027, Counterpoint Says, ” originally appeared on Benzinga. com.