Broadcom achieved $51.6B in FY24 revenue, driven by VMware integration and 44% YoY growth. Click here to find out why AVGO stock is a Buy.

Nvidia supplies leading hyperscalers with AI chips, but Broadcom's latest sales figures may not bode well for the company.

We recently published a list of Wall Street Is Focusing on These 10 AI Stocks as New Year Begins. In this article, we are going to take a look at where Broadcom Inc. (NASDAQ:AVGO) stands against other stocks Wall Street is focusing on as the new year begins.

Both stocks have had strong runs in 2024. Let's consider which semiconductor looks like the better buy heading into 2025.

The company recently wrapped up its year-end results for fiscal 2024 (which ended Nov. 3). Sales totaling $51.6 billion rose by 44% year over year, largely driven by a 181% increase in infrastructure software sales ($21.5 billion) -- due in large part to the closing of the acquisition of VMware in November of 2023.

Since AI emerged as the world's next megatrend about two years ago, one product in particular has become the technology sector's holy grail.

In 2024, the U.S. tech sector had a tumultuous year for semiconductor companies, with Nvidia and Broadcom succeeding in AI while Intel fell behind. Broadcom joined Nvidia and TSMC in the $1 trillion club,

Chip stocks surged Monday, led by Broadcom and Advanced Micro Devices following bullish calls from analysts, citing their potential to gain from booming demand for artificial intelligence.

Broadcom (NASDAQ: AVGO) has been an outstanding investment over the past three years, as shares of the semiconductor giant have shot up an impressive 240% during this time and outpaced the 27% gains clocked by the PHLX Semiconductor Sector index over the same period.

Do Custom AI Chips Make Marvell Stock A Buy? For instance, Broadcom’s sales from its custom AI chips and networking processors surged by 220% to $12.2 billion in 2024, up from $3.8 billion in revenue that the company generated from AI silicon in FY’23.

Nvidia is one of the most popular AI stocks right now because of its lead in the semiconductor space. The company's graphics processing units (GPUs) have been used in data centers for years, and once tech giants began competing for generative AI dominance, the chips were even more in demand.

We recently published a list of Wall Street Is Focusing on These 10 AI Stocks as New Year Begins. In this article, we are going to take a look at where Broadcom Inc. (NASDAQ:AVGO) stands against ...