The Circuit EP 133: Broadcom Earnings, More on ASICS vs. GPUs, Google Selling TPUs?
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Sep 8, 2025 The discussion kicks off with Broadcom's impressive earnings, sparking excitement in the semiconductor market. The hosts analyze the competitive landscape, noting how new customers could reshape industry dynamics. They dive into the showdown between ASICs and GPUs for AI workloads, raising concerns about the sustainability of investments. The evolving definitions of processors are also explored, suggesting GPUs be rebranded as AI accelerators. Finally, Google's strategy for selling TPUs unfolds, highlighting challenges amid fierce competition.
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Broadcom’s $10B Custom-ASIC Win Moves Markets
- Broadcom announced a fourth custom-ASIC customer worth about $10B, which materially shifted sentiment despite a modest beat/raise.
- That win signals hyperscalers are seriously pursuing first-party ASICs as a second source to NVIDIA for large AI spend.
Hock Tan’s Candid Call And Extended Tenure
- Hawk Tan's candor on Broadcom's call and his decision to stay as CEO until 2030 energized investors.
- His explicit claim about a $10B customer and board engagement changed sentiment and drove the stock reaction.
Lumpiness, Not Cyclicality, For ASIC Adoption
- Custom ASIC adoption is lumpy, not cyclical: tape-out and real workload testing decide scale, so many projects may never scale.
- GPUs are likely to retain the majority share through 2030 because merchant accelerators offer strong performance-per-watt and wide applicability.