From Nasdaq: 2025-02-16 10:15:00

Nvidia remains the top player in the AI trade, creating chips and network infrastructure for AI solutions. Competitors like Broadcom and AMD are also in the mix, with Broadcom’s stock up 86% and AMD’s down 36% over the last year. Analysts predict growth for both companies, but in different areas.

Broadcom focuses on custom chips for tech giants like Alphabet, Amazon, and Microsoft. With the rise of companies like DeepSeek and OpenAI, custom chips for AI are gaining traction. Broadcom’s stock is doing well, with a $1 trillion market cap and earnings growth expected.

AMD competes against Nvidia in the AI market, offering cheaper but less powerful chips. Despite recent earnings disappointment, analysts foresee growth from $1.00 to $2.47 in 2025. The company’s data center segment underperformed, but overall sentiment remains positive with 33% upside potential.

Investors are debating between Broadcom and AMD, with Broadcom trading at 37 times forward earnings and AMD at around 23 times. Both companies have potential for growth, but Broadcom seems better positioned for current AI market trends. Analysts see room for AMD to run in the near term.



Read more at Nasdaq: Broadcom vs. Advanced Micro Devices: Wall Street Sees Much Faster Earnings Growth for One, But Thinks the Other Stock Will Outperform