Broadcom and AMD Gain Ground as Micron Forecasts Memory Shortages

While Nvidia Corporation maintained 80% to 90% control of the AI data center GPU market in the first half of 2026, competitors are successfully carving out significant niches. Nvidia Corporation's data center segment generated approximately $194 billion in its most recent fiscal year, and the company has transitioned its Vera Rubin platform into full production.

Broadcom Inc is emerging as a primary alternative by focusing on custom application-specific integrated circuits for clients including Alphabet, Meta Platforms, OpenAI, and Anthropic. Broadcom reported a 143% year-over-year increase in AI semiconductor revenue to $10.8 billion in its fiscal 2026 second quarter and projects that revenue will exceed $100 billion by the end of fiscal 2027.

Advanced Micro Devices, Inc. has gained momentum with a 57% increase in data center revenue and triple-digit stock growth. Advanced Micro Devices, Inc. secured multiyear commitments from Meta Platforms and OpenAI for its Helios server racks and upcoming MI400 chip lineup, which will utilize up to 432 gigabytes of HBM4 memory. In contrast, Intel's Gaudi accelerators have failed to generate meaningful revenue, though its stock rose 340% on confidence in its foundry turnaround.

This infrastructure expansion has triggered widespread shortages of high bandwidth memory (HBM) chips. Micron Technology expects supplies of DRAM and NAND to remain tight beyond 2027 due to skilled worker shortages, energy infrastructure needs, and long foundry construction times. Analysts project 81% revenue growth for Micron in fiscal 2027 as demand surges for the HBM4 memory required by the latest hardware from Nvidia Corporation and Advanced Micro Devices, Inc.