Prediction: This Trillion-Dollar AI Titan Will Outperform Nvidia Through the End of 2027 | The Motley Fool

Nvidia has been one of the best stocks to own since 2023. But I think it could give up that title this year to Broadcom (AVGO +4.99%). While I still think Nvidia is a great investment overall, I think Broadcom could outperform it over the next few years.

Nvidia’s computing ecosystem is still dominant, but with artificial intelligence (AI) workload starting to become more understood, custom AI chips, like those from Broadcom, could be the future. I think this will lead to monster growth for Broadcom and could easily allow it to outpace Nvidia’s stock through the end of 2027.

Broadcom’s custom chip business is booming

Nvidia’s graphics processing units (GPUs) are incredibly powerful computing units. Nothing compares to the ecosystem that Nvidia has created, and it can take a wide variety of workloads and perform a number of tasks on the same devices. However, this flexibility isn’t needed if the computing unit is going to run only one workload type for its entire service life. That’s where a custom AI chip from Broadcom shines.

Broadcom is partnering with AI hyperscalers to design application-specific integrated circuits (ASICs). These have been around for a long time and are commonly used for industry-specific equipment. Broadcom is taking this tried-and-true idea and adapting it for AI, a strategy that’s working.

Today’s Change

(4.99%) $16.66

Current Price

$350.63

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$1.7T

Day’s Range

$342.53 – $354.14

52wk Range

$161.61 – $