currently dominates the market for custom chips for internal workloads, but they cautioned that there is some risk from the “stiff competition against NVDA’s stronghold in merchant silicon and enterprise customers.” Morgan Stanley analysts said Broadcom’s commentary around AI will likely add to long-term enthusiasm around the company, which they expect will continue to build. They said Broadcom remains “one of the most compelling ways to play AI semis” over the next two to three years. “Overall, the quarter itself will provide a relief vs. low nearer term expectations, and the longer term commentary around AI will stoke enthusiasm for custom AI chip longer term prospects — enthusiasm that was already at a fever pitch,” the analysts wrote in a Friday note. — CNBC’s Michael Bloom and Kif Leswing contributed to this report.