Broadcom Inc. (NASDAQ:AVGO) is emerging as a potential winner from NVIDIA Corp. (NASDAQ:NVDA)'s leadership turmoil, as analysts see the chipmaker gaining ground in the AI race while tech giants accelerate efforts to reduce their reliance on NVIDIA's processors.

Experts say Broadcom's growing role in developing custom AI chips for hyperscalers could help it capture more market share as NVIDIA faces mounting competition and leadership challenges.

Goldberg Sees Broadcom Gaining Market Share

Seaport Research's Jay Goldberg told CNBC on Friday that Broadcom has emerged as a strong competitor by helping major cloud companies develop custom AI chips.

Goldberg described Broadcom as "very, very capable" in helping major cloud companies develop custom AI chips.

He said the company was already gaining market share before NVIDIA's leadership troubles, which could accelerate the shift toward competing processors.

Goldberg said Broadcom and Advanced Micro Devices Inc. (NASDAQ:AMD) were already gaining market share before NVIDIA's leadership turmoil.

He believes the uncertainty could push customers to diversify their chip suppliers faster.

Goldberg said Broadcom has moved beyond its initial breakthrough in the market and has already "cracked it open," putting more pressure on NVIDIA.

McGough Sees Broadcom Gaining As NVIDIA's Dominance Weakens

Prime Capital Financial Chief Investment Officer Will McGough told CNBC on Friday that Broadcom could benefit as customers explore alternatives to NVIDIA's AI chips.

McGough said AMD is gaining ground, while Broadcom could "step in and fill some of the gap" during NVIDIA's leadership transition.

He also pointed to growing competition from custom chips developed by Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), Amazon.com Inc. (NASDAQ:AMZN) and Chinese companies.

McGough said advances in AI models could weaken NVIDIA's software advantage, making competing chips more attractive.

That shift could force investors to reassess NVIDIA's competitive position and create more opportunities for Broadcom.

Both experts see Broadcom benefiting as major cloud companies diversify their AI chip suppliers and invest in custom processors.

Earnings And Analyst Outlook

Broadcom is scheduled to report earnings on Dec. 9.

Analysts expect earnings of $3.81 per share, up from $1.95 a year earlier. Revenue is forecast to reach $34.89 billion, compared with $18.02 billion last year.

The stock trades at a price-to-earnings ratio of 46.5.

Analysts maintain a consensus Buy rating, with an average price forecast of $522.92.

Rosenblatt maintained its Buy rating with a $600 price forecast on Oct. 27. DA Davidson upgraded AVGO to Buy and raised its price forecast to $400 the same day. Tigress Financial initiated coverage with a Buy rating and a $600 price forecast on Oct. 22.

AVGO Stock Price Activity: Broadcom shares were down 1.40% at $359.25 during premarket trading on Friday, according to market data.