2 Artificial Intelligence (AI) Stocks That Have Roughly Doubled or More in 2024 and Could Soar Even Higher in 2025, According to Wall Street

Core Insights - The year 2024 has been exceptionally favorable for AI stocks, with many companies experiencing significant gains [1] Company Performance - Broadcom's share price has nearly doubled year to date, although it faced a recent sell-off due to the Fed's cautious stance on rate cuts for 2025 [2] - Wall Street analysts remain overwhelmingly bullish on Broadcom, with 38 out of 43 analysts rating it as a buy or strong buy [3] - Nvidia's stock has seen remarkable growth, soaring nearly 239% in 2023 and over 160% year to date in 2024, despite recent corrections [4] - A significant majority of analysts, 62 out of 64, rate Nvidia as a buy or strong buy, with an average 12-month price target nearly 32% above its current share price [5] Market Opportunities - Broadcom is expected to benefit from the development of custom AI accelerators by large organizations, with management estimating a market potential of $60 billion to$90 billion by fiscal 2027 [7] - Nvidia's upcoming Blackwell chips are anticipated to drive sustained revenue and earnings growth, with demand for these GPUs described as "staggering" by CEO Jensen Huang [6][9] Financial Performance - Broadcom's recent quarterly results have not been outstanding when excluding the impact of its VMware acquisition, yet investor excitement remains high due to AI opportunities [12] - Nvidia's revenue surged by 94% year over year in Q3 to a record $35.1 billion, primarily driven by the demand for data center GPUs related to AI [14] Future Outlook - Analysts express mixed sentiments about the sustainability of the current momentum in AI stocks, with some expecting continued growth for Broadcom and Nvidia into 2025 [11] - Nvidia is viewed as the more favorable AI stock for 2025, with expectations of a potential 30% increase in share price over the next 12 months [10][16]