AI chips built in-house by Big Tech are projected to take a larger slice of the AI server market, and Nvidia's share is expected to fall from around 70%. Broadcom, Marvell and TSMC design and build those chips. Nvidia has also put $2 billion into Marvell.
Custom ASICs are expected to capture ~27.8% of the AI server market by 2026, alongside a projected reduction in Nvidia's share from around 70%. Big Tech companies are building chips tuned to their own workloads, and the design and manufacturing partners behind them are collecting the gains.
Citing TrendForce, The Motley Fool reports that custom processors will grow by an estimated 45% this year, while GPUs will rise by just 16%.
Broadcom and Marvell design the chips
Broadcom holds a 60-70% share of the custom AI ASIC design services market as of October 2026. Its AI semiconductor revenue hit $16.7 billion in fiscal Q3 2026, up 221% year over year, and it carries an estimated backlog of ~$73 billion in AI-related contracts.
Alphabet also signed a multiyear deal with Broadcom for custom processors through 2031, according to The Motley Fool.
Marvell, meanwhile, designs custom chips for Amazon's Trainium and Microsoft's Maia AI processors. At its Investor Day in October 2026, it disclosed revenue targets of $70 billion to $90 billion by fiscal 2031.
TSMC manufactures the chips either way
TSMC's revenue grew 53% year over year in August 2026, driven by demand for AI-related wafers. The Motley Fool adds that TSMC manufactures about 73% of the world's processors, and an estimated 90% of the most advanced ones.
Nvidia backs a custom-chip designer
Nvidia is not standing apart from the shift. Marvell secured a $2 billion investment from Nvidia, which gives Nvidia's customers access to Marvell's custom processors.
The Motley Fool notes that the rise of custom AI processors could eventually erode Nvidia's market share. Crypto Briefing calls the projected slide from around 70% worth watching, though it unfolds inside a market that is growing quickly.
Sources: Crypto Briefing, The Motley Fool
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