Ai Chip Stocks To Buy

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Ai Chip Stocks To Buy

2 AI Chip Stocks To Buy In This Market

AI chip stocks seem to be cooling off, and the entire sector is under selling pressure. The sell-off is due to concerns that AI infrastructure spending might slow down.

However, hyperscalers have announced that their capex will increase in the next year. In addition, the Bank of America is also expecting the AI data center capex to reach $1.5 trillion in 2027.

So, this pullback should be viewed as a great opportunity to buy the AI chip stocks. With that in mind, we have picked 2 AI chip stocks that could give you a nice upside:

Advanced Micro Devices

The first name is AMD, which is also a big name like Nvidia. The company makes GPUs which has the ability to compete against Nvidia's products.

Sure, AMD is not as big as Nvidia, but it is catching up. Also, AMD has made partnerships with Meta Platforms and OpenAI.

This means we can expect big orders from these companies once AMD starts to ship its newest GPUs. There are also reports that AMD has a partnership with Anthropic.

Last but not least, AMD is also a leader when it comes to the data center CPUs. Right now, the one piece of hardware that's in demand for managing the AI agents is CPUs. So, that's also something which will drive strong growth for AMD.

Broadcom

Another good AI chip stock you can consider buying is Broadcom. It has posted strong revenue growth in the last few quarters. Also, the recent selloff in the AI chip stocks has sent the Broadcom stock valuation down to very reasonable levels.

For the next year, the estimated revenue from custom chips should be $100 billion. If this turns out to be true, it would be way higher than the total revenue of $64 billion generated last year.

The success of Alphabet TPUs is also big news for Broadcom. After all, Broadcom helped Alphabet make that chip.

Now, many other hyperscalers are also moving towards Broadcom's ASIC services. In this service, Broadcom helps them develop custom chips for AI purposes.

Last but not least, Broadcom is also a big player in data center networking. That's also a key business which will contribute to strong revenue growth.

So, another solid stock you can consider buying is Broadcom. It has strong revenue growth and is highly likely to post huge upside in the stock market.

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