Broadcom(AVGO) ZACKS·2024-12-29 00:01Broadcom (AVGO) - Broadcom is a key supplier to Apple and has secured two hyper-scale data center customers, rumored to be Alphabet and Meta Platforms or similar companies like Amazon and Microsoft [1] - The company is considered the second-largest AI semiconductor supplier, making its growth narrative very appealing [11] Nvidia (NVDA) - Nvidia is the largest AI chipmaker, with its Blackwell series AI chips being the highest-performing on the market despite some overheating challenges [3] - Nvidia's H100 and H200 series chips have driven significant growth, with total sales projected at 10.91 billion [15] - Nvidia's price performance has more than doubled its top-line growth, with FY26 sales projected to increase by 48% to $191.84 billion [9] - YTD performance: +176% [5] Taiwan Semiconductor (TSM) - Taiwan Semiconductor is the world's largest provider of integrated circuit foundries and a key supplier for Apple [14] - The company provides foundries for other companies to produce AI chips, including Nvidia [14] - Taiwan Semiconductor has the cheapest P/E valuation on the list at 29.2X forward earnings and is expected to post double-digit top and bottom-line growth this year and in FY25 [17] - YTD performance: +116% [8] Industry Overview - The global market for artificial intelligence is presumed to be worth trillions in the coming years, making semiconductor stocks like Broadcom, Nvidia, and Taiwan Semiconductor lucrative investments going into 2025 [7] - Semiconductor stocks are particularly targeted due to their role in configuring artificial intelligence [18] - YTD performance of Nvidia: +94% [4]