NVIDIA - NVIDIA is the dominant player in AI infrastructure and GPUs, with no significant competition yet [1] - The company's GPUs are in high demand for accelerating AI workloads, a trend expected to continue [1] - NVIDIA has a P/E ratio of 53.92 and a projected earnings growth of 40.29% [1][16] - The stock has a 19.8% upside potential and a dividend yield of 0.03% [2][15] - NVIDIA's MarketRank™ is in the 98th percentile, indicating strong market performance [2] Broadcom - Broadcom is NVIDIA's main competitor in AI computing, focusing on ASICs for specific customers [5][17] - The company's Q3 revenue grew by 51%, with AI-driven revenues surging 220% [6] - Broadcom has a P/E ratio of 210.03 and a dividend yield of 0.98% [17] - The stock has a projected earnings growth of 35.88% and a MarketRank™ in the 94th percentile [6][17] - Broadcom acquired three new hyperscaler customers, potentially adding tens of billions in future revenue [6] TSMC - TSMC manufactures approximately 90% of the world's most advanced semiconductors [23] - The company is building facilities in the US to mitigate geopolitical risks, including a potential collaboration with NVIDIA for AI chips [25] - TSMC has a P/E ratio of 32.31 and a dividend yield of 1.09% [9][23] - The stock has a 6.1% upside potential and a projected earnings growth of 27.34% [10][23] - TSMC's MarketRank™ is in the 73rd percentile, with a moderate buy rating from analysts [10] Industry Trends - The AI arms race in big tech is driving demand for advanced semiconductors, benefiting companies like NVIDIA, Broadcom, and TSMC [14] - In 2024, chip stocks returned 182%, 123%, and 97%, reflecting strong market performance [14] - The AI revolution is expected to create real-world impacts by 2025, further boosting demand for advanced chips [3][14]
These 3 Chip Stock Kings Are Still Buys for 2025