By Justin Pope, The Motley Fool
Publication Date: 2026-06-06 05:50:00
Nvidia still dominates the market for chips used in artificial intelligence (AI) data centers. But AI is such a tremendous opportunity that second place isn’t so bad in this case. Statista estimates that the AI chip market will continue to grow, reaching $333 billion by the end of the decade.
That leaves plenty of room for other companies to make investors quite a bit of money over the coming years. Broadcom (NASDAQ: AVGO) and Advanced Micro Devices (NASDAQ: AMD) would be two prime candidates. Both have made inroads with their AI chips, but when it’s all said and done, one stands out above the other. Here’s why Broadcom is likely the better AI chip stock to own.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
AMD is picking the harder fight
The million-dollar question is, how does a smaller company compete with the industry giant? Advanced Micro Devices, or AMD for short, is primarily competing head-to-head with Nvidia in general-purpose AI chips. To its credit, AMD has gotten some traction; data center revenue grew by 57% year over year to $5.8 billion in the first quarter of 2026.
AMD is naturally going to see some opportunities from the AI hyperscalers who don’t want to put all their…