- NVDA
- AVGO
- TSM
Artificial intelligence (AI) investing has been a top theme in the market since 2023, and that trend looks set to persist for at least the next few years. The reality is that AI innovation hasn’t stopped, and there are still countless use cases that haven’t been optimized. All of this requires more AI computing equipment, and with the AI hyperscalers projected to spend over a trillion dollars next year on data centers, there are a handful of companies primed to benefit.
Among the best buys now for stocks that are in line to thrive are Nvidia (NASDAQ: NVDA), Broadcom (NASDAQ: AVGO), and Taiwan Semiconductor Manufacturing (NYSE: TSM). All three of these have huge growth expectations over the coming years and are also reasonably priced despite their potential to skyrocket.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again.In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia.Continue »
Nvidia and Broadcom just announced incredible guidance
Nvidia and Broadcom are competitors but have different offers. Nvidia has thebest-in-class graphics processing units (GPUs), which are broad-purpose computing units that can handle just about any workload thrown at them. They have been dominant since the start of the AI arms race in 2023, and their industry dominance over that time frame has made their products synonymous with the industry.
Because GPUs are designed to handle all sorts of workloads, some features go to waste when a GPU performs the same workload for its entire lifespan. To combat that, AI hyperscalers are partnering with Broadcom to design custom AI chips. These computing units may not handle the wide variety of workloads a GPU can, but they can perform better and cost less than a GPU for the applications they’re built for.
The combination of these two computing units is the future of the industry, and both Nvidia and Broadcom are set to cash in, as is Taiwan Semiconductor.
Neither Nvidia nor Broadcom has the chip production facilities to fabricate the silicon wafers used in these chips. Instead, they outsource that work to chip foundries, primarily Taiwan Semiconductor. TSMC, as it’s also known, is by far the largest company in this space and has the production capacity to meet soaring AI demand. If Nvidia and Broadcom sell more chips, then TSMC is a direct beneficiary. Fortunately for it, these two project massive growth.
