From Nasdaq: 2025-06-14 06:35:00

Nvidia (NASDAQ: NVDA) leads AI chip supply for data centers, reporting strong growth and nearing all-time stock highs. However, other companies like Google and Amazon are also making custom AI chips, creating opportunities for chip stocks like Broadcom (NASDAQ: AVGO) and Taiwan Semiconductor (NYSE: TSM) to capitalize on the growing demand for AI semiconductors.

Broadcom excels in supplying custom AI accelerators and networking solutions for data centers, with AI-related revenue up 46% year over year. The company’s strong growth in networking, with AI networking revenue growing 170%, indicates a significant increase in computing power for advanced AI applications and services.

Taiwan Semiconductor Manufacturing (TSMC) is a key player in the chip industry, supplying chips for companies like Nvidia and Apple. Despite seasonal trends affecting smartphone revenue, TSMC saw a 35% year-over-year growth in U.S. dollar revenue. The company’s investment in cutting-edge chip-making technology positions it well to meet the growing demand for AI chips.

Investors considering chip stocks like Broadcom and TSMC may find value in these companies as they ride the wave of AI chip demand. Despite trading at premium multiples, the growth potential for custom chip demand over the next few years could justify the investment. Joining platforms like Stock Advisor can provide insights into the best stocks to buy for potential high returns in the future.



Read more at Nasdaq: Should You Buy Nvidia? These Chip Stocks Are Soaring as AI Demand Remains Hot.