According to an analysis by Counterpoint Research, Broadcom (AVGO.US) is expected to maintain its leading position in the artificial intelligence server computing ASIC design partner field by 2027, with its market share reaching 60%.

Counterpoint stated that as companies including Google (GOOGL.US), Amazon (AMZN.US), Apple (AAPL.US), Microsoft (MSFT.US), ByteDance, and OpenAI accelerate the deployment of chips for training and inference workloads, shipments of AI server computing ASICs are projected to triple by 2027.

This rapid growth stems from demand for Google's TPU infrastructure (used to support the Gemini project), the continued expansion of Amazon's Trainium clusters, and the capacity increases from Meta's MTIA and Microsoft's Maia chips as their internal product lines expand.

Neil Shah, an analyst at Counterpoint, commented, "The growth in internal AI server computing ASIC designs is validating the arrival of the era of internal custom XPUs, where AI accelerators are tailored for specific workloads (training or inference) and are no longer architecturally reliant solely on general-purpose GPUs. As power and space become bottlenecks, migrating some AI workloads to vertically integrated chips not only gives hyperscale data center operators greater control and advantages but also brings substantial software support to optimize AI workloads and enjoy performance and efficiency gains."

Furthermore, Counterpoint anticipates that by 2028, shipments of AI server computing ASICs will exceed 15 million units, surpassing shipments of data center GPUs.

Shah pointed out, "The top ten AI hyperscale data center operators are projected to cumulatively deploy over 40 million AI server computing ASIC chips between 2024 and 2028. Supporting this unprecedented demand are AI hyperscale data center operators who have built massive rack-scale AI infrastructures based on their own technology stacks, such as Google's TPU Pods and AWS's Trainium UltraClusters, enabling them to operate like a single supercomputer."

Taiwan Semiconductor Manufacturing Company (TSM.US) holds nearly 99% of the wafer manufacturing share for the top ten companies by AI server computing ASIC shipments.

Although Google and Amazon still dominated AI server computing ASIC shipments in 2024, the market landscape is rapidly diversifying as Meta, Microsoft, and others enter the field.

By 2027, Google's market share is expected to decline from 64% to 52%, while Amazon's share is projected to drop from 36% to 29%.

Shah stated, "Although Google's market share is expected to fall to 52% by 2027 due to the expanding market size and competing hyperscalers adopting in-house chips in collaboration with design firms like Broadcom, Marvell Technology (MRVL.US), and Alchip, its TPU chip clusters will remain the undisputed core pillar and guiding beacon for the industry. This baseline is built upon the massive and sustained computational intensity required to train and run the next-generation Gemini models, which necessitates continuous and aggressive enhancement of in-house chip infrastructure."

This indicates that hyperscale data centers are gradually reducing their over-reliance on NVIDIA (NVDA.US) and instead seeking self-developed custom chips to meet part of their computing needs.

By 2027, Broadcom and Alchip are expected to continue holding the majority share of these hyperscale data center ASIC design service partnerships, at 60% and 18%, respectively.

However, Marvell Technology's share is projected to decline from 12% to 8% during this period.

Gareth Owen, an analyst at Counterpoint, noted, "Nevertheless, Marvell Technology's end-to-end custom chip portfolio appears more robust than ever, benefiting from its custom silicon innovations, such as custom HBM/SRAM memory and PIVR solutions, and the acquisition of Celestial AI, all of which expand Marvell's potential market in scaled connectivity. Celestial AI could not only bring Marvell billions of dollars in annual revenue growth but also potentially propel Marvell to a leading position in optical scaled connectivity in the coming years."