We recently published Top 10 Analyst Calls on Trending Stocks You Shouldn’t Miss. Broadcom Inc. (NASDAQ:AVGO) is one of the major analyst calls. Stacy Rasgon, Bernstein senior U.S. semiconductor analyst, said in a CNBC program in May that AI demand is “off the charts” and CapEx is not slowing as it was feared. Rasgon liked Broadcom Inc (NASDAQ:AVGO) amid the company’s AI and software exposure: “Look, I’ve liked the AI names. I felt that whereas for a lot of these other end markets people were really worr ...

Key Points Investing in the companies powering artificial intelligence (AI) models is a smart move. AI hyperscalers are spending billions on data centers, but are also recouping some of that investment by renting out computing power. 10 stocks we like better than Nvidia › Artificial intelligence (AI) investing remains a primary driver in the market, fueled by massive capital expenditures in data centers by AI hyperscalers. There are numerous AI stocks that investors can consider right now, and this ...

Core Viewpoint - Nvidia remains a leading player in the AI race, but its stock has declined by 25% to 30% from its all-time high, reflecting broader market trends [1][2] Group 1: Nvidia's Market Position - Nvidia's GPUs, originally designed for gaming, have found extensive applications in AI due to their parallel processing capabilities [4] - Nvidia holds a dominant market share in the data center GPU market, estimated to be above 90%, which has attracted competition [5] - The company's profit margins have increased significantly, leading some clients to seek alternatives due to high prices [6] Group 2: Competition and Alternatives - AI hyperscalers are exploring custom AI accelerators, such as those from Broadcom, which can outperform Nvidia GPUs in specific applications but lack flexibility [8] - While competition is expected to increase, it is unlikely to significantly undermine Nvidia's investment potential [9] Group 3: Future Revenue Projections - Data center capital expenditures are projected to rise from approximately $400 billion in 2024 to $1 trillion by 2028, which is crucial for Nvidia's revenue growth [10] - Nvidia generated $115 billion from its data center division over the past year, capturing nearly 30% of total data center spending [11] - If Nvidia maintains its market share, it could generate around $288 billion by 2028, although competition may limit this growth [11] Group 4: Market Dynamics - Broadcom estimates a $60 billion to $90 billion addressable market from three major clients by 2027, indicating a direct challenge to Nvidia's market share [12] - The future landscape will likely involve a mix of GPUs and custom AI accelerators, suggesting that both Nvidia and Broadcom could be successful investments [13] - If the data center market does not meet projected figures, Nvidia's stock may face challenges due to capped revenue and rising competition [14]