2 Top Artificial Intelligence (AI) Stocks to Buy Before 2025

Core Insights - The demand for AI infrastructure is driving significant growth in revenue and earnings for tech companies, particularly in data center chips and server solutions [1][2] - Capital expenditures for hyperscale cloud companies are expected to increase by 41% in 2024 and 15% in 2025, with potential for even higher spending on GPUs and custom AI chips [1][2] Group 1: Broadcom - Broadcom specializes in application-specific integrated circuits (ASICs), which are projected to dominate AI workloads by 2030 due to their energy efficiency and performance advantages over GPUs [3][4] - The ASIC market is estimated to be worth $20 billion to $30 billion, with a long-term growth rate exceeding 20% [3] - Broadcom holds a dominant market share of 55% to 60% in ASICs and expects to generate $12 billion in revenue from AI-related products in the current fiscal year, a significant increase from $4.2 billion last year [4][5] - AI revenue is projected to account for 23% of Broadcom's total revenue in fiscal year 2024, up from 14% the previous year, with networking revenue increasing by 43% year over year [4][5] - Analysts anticipate Broadcom's earnings to grow at an annual rate of 20% over the next five years, with potential for growth to exceed current expectations [5][6] Group 2: Dell Technologies - Dell Technologies has benefited from increased spending on AI infrastructure, particularly in its infrastructure solutions group (ISG), which saw a 38% revenue growth to $11.6 billion [7][8] - The company shipped $3.1 billion worth of AI servers last quarter and received $3.2 billion in new orders, indicating strong demand from cloud service providers [8] - The AI server market is expected to grow at an annual rate of 18% through 2032, potentially reaching $183 billion in annual revenue [8] - Dell's fiscal 2025 revenue guidance of $97 billion represents a 10% improvement from the previous year, marking a turnaround from a 14% decline in fiscal 2024 [9] - Earnings are expected to grow at an annual rate of almost 11% over the next five years, a significant improvement from the previous five years of earnings erosion [9][10]