Broadcom(US:AVGO) The Motley Fool·2025-03-12 12:30Core Insights - The AI market is experiencing rapid growth, with a projected compound annual growth rate of 36.6% from 2024 to 2030 as industries adopt AI technologies [2][3]. Group 1: Nvidia - Nvidia is the largest producer of discrete GPUs, which are essential for AI and machine learning tasks, and its chips are utilized by top AI companies like OpenAI and Microsoft [4][6]. - In fiscal 2025, Nvidia's data center chip sales surged 142%, accounting for 88% of total revenue, with overall revenue increasing by 114% and adjusted EPS rising by 130% [6]. - Analysts expect Nvidia's revenue and adjusted EPS to grow by 56% and 50%, respectively, in fiscal 2026, indicating continued strong performance in the AI sector [6][7]. Group 2: Broadcom - Broadcom is a diversified chipmaker and software company, producing a wide range of chips, including those for AI-oriented data centers [8][9]. - Sales of AI chips more than tripled in fiscal 2024, making up 24% of total revenue, with overall revenue and adjusted EPS increasing by 44% and 15%, respectively [9]. - For fiscal 2025, analysts project revenue and adjusted EPS growth of 21% and 36%, respectively, as Broadcom capitalizes on opportunities in the AI market [10][11]. Group 3: Taiwan Semiconductor Manufacturing (TSMC) - TSMC is the largest contract chipmaker, producing high-performance chips essential for companies like Nvidia, controlling nearly two-thirds of the global foundry market [12][13]. - In 2024, TSMC generated 51% of its revenue from high-performance computing, with revenue and EPS growth of 30% and 40%, respectively, driven by AI-oriented chipmakers [13]. - Analysts expect TSMC's revenue and EPS to grow by 28% and 29%, respectively, in 2025, as demand in both AI and non-AI markets increases [14][15].