Key Points Nvidia remains the leader in AI infrastructure. Broadcom has a big opportunity in front of it with custom AI chips. Growing its share of the huge GPU space would be a big growth driver for AMD. 10 stocks we like better than Nvidia › With spending for artificial intelligence (AI) infrastructure still on the rise, now looks like a good time to invest in the space. Let's look at three stocks set to be AI infrastructure winners. Nvidia Nvidia (NASDAQ: NVDA) remains the king of AI infrastr ...

Core Viewpoint - The market is increasingly driven by companies involved in artificial intelligence (AI), particularly those focused on AI infrastructure, which are expected to present investment opportunities as the year concludes [1]. Group 1: Nvidia - Nvidia is the leading company in AI infrastructure, holding over 90% market share in the GPU sector [2]. - The company's data center revenue has increased nearly fourfold over the past two years, indicating strong growth potential as AI spending rises [2]. - Nvidia's CUDA software platform creates high switching costs for customers, while its NVLink interconnect system enhances chip performance, solidifying its market position [4][5]. Group 2: Broadcom - Broadcom has emerged as a significant player in AI infrastructure, with large hyperscalers seeking to reduce reliance on Nvidia by developing custom ASICs for AI workloads [6]. - The company has a potential market opportunity of $60 billion to $90 billion by fiscal 2027, driven by partnerships with major clients like Alphabet, Meta Platforms, and ByteDance [8][9]. - Broadcom's recent $10 billion order from a potential customer, possibly Apple, and a deal with OpenAI could further enhance its growth prospects [9]. Group 3: Taiwan Semiconductor Manufacturing (TSMC) - TSMC is well-positioned to benefit from the increasing demand for GPUs and AI ASICs, as it manufactures advanced chips designed by companies like Nvidia and Broadcom [10]. - The company has established itself as the leader in advanced chip manufacturing, benefiting from its scale and technical expertise, which provides strong pricing power [12]. - TSMC anticipates a mid-40% compound annual growth rate (CAGR) in demand for AI chips over the next five years, indicating robust growth potential [13].

Core Viewpoint - Palantir Technologies and Nvidia are two prominent stocks in the AI sector, but Wall Street analysts have differing opinions on their investment potential [1][2]. Palantir Technologies - Palantir has experienced significant revenue growth, with a 48% increase last quarter, reaching $1 billion, driven by its U.S. commercial segment [3][5]. - The company's AI Platform (AIP) serves as an AI operating system, organizing data across organizations and enhancing the utility of large language models [4]. - Despite strong growth, Palantir's valuation is a concern, trading at over 100 times 2025 analyst revenue estimates, leading to a consensus rating of "hold" among analysts [6][7]. - Analysts appreciate Palantir's growth potential but caution that the stock's current valuation may not be sustainable, suggesting a wait for a price pullback before investing [8]. Nvidia - Nvidia is viewed more favorably by analysts, with 37 out of 46 recommending it as a "buy" due to its dominant position in AI infrastructure [2][9]. - The company has established a robust ecosystem around its graphics processing units (GPUs), which are essential for training AI models [10]. - Nvidia's networking solutions, bolstered by its acquisition of Mellanox, have contributed significantly to its growth, with data center networking revenue nearly doubling to $7.3 billion last quarter [11]. - The AI infrastructure market is projected to grow from approximately $600 billion to as much as $4 trillion, presenting a substantial opportunity for Nvidia [12]. - Nvidia's valuation remains reasonable, with a forward P/E of 30.5 and a PEG ratio under 0.9, indicating it is undervalued relative to its growth prospects [13].