Could This Unstoppable Company Dethrone Nvidia as the Top AI Stock Investment?
Nvidia (NASDAQ: NVDA) has been the top AI investment since the AI arms race kicked off in 2023. Over that time frame, Nvidia's stock has risen over 800%, turning every $10,000 invested into over $90,000. There aren't many stocks that can claim returns like that, let alone any that have grown to the size of Nvidia.However, some troubles are brewing over at Nvidia that investors must know about. Nvidia has essentially been the sole source of AI computing hardware, allowing it to charge a premium price for its graphics processing units (GPUs). This has caused Nvidia's margins to soar, and its customers are aware of this. The old saying, "Your margins are my opportunity," rings true here, and many of its clients are starting to investigate using custom AI accelerators instead of GPUs.Broadcom (NASDAQ: AVGO) has become a valuable partner in designing these custom AI accelerators, which it calls XPUs. A massive market for this hardware could emerge over the next few years, as companies are now ready to optimize their AI training after the valuable lessons learned since 2023.Continue reading
Nvidia (NASDAQ: NVDA) has been the top AI investment since the AI arms race kicked off in 2023. Over that time frame, Nvidia's stock has risen over 800%, turning every $10,000 invested into over $90,000. There aren't many stocks that can claim returns like that, let alone any that have grown to the size of Nvidia.
However, some troubles are brewing over at Nvidia that investors must know about. Nvidia has essentially been the sole source of AI computing hardware, allowing it to charge a premium price for its graphics processing units (GPUs). This has caused Nvidia's margins to soar, and its customers are aware of this. The old saying, "Your margins are my opportunity," rings true here, and many of its clients are starting to investigate using custom AI accelerators instead of GPUs.
Broadcom (NASDAQ: AVGO) has become a valuable partner in designing these custom AI accelerators, which it calls XPUs. A massive market for this hardware could emerge over the next few years, as companies are now ready to optimize their AI training after the valuable lessons learned since 2023.
