AI Chip Stocks Nvidia, AMD, Broadcom Seen as Buys Amid Sell-Off

Industry
โดย Motley Fool·Read original
Summary · why it matters

AI chip stocks have faced increased selling pressure this summer on concerns that AI infrastructure spending could slow, but hyperscalers have largely indicated their capital expenditures will only increase next year, and Bank of America recently projected that worldwide cloud and AI data center capex will jump by 40% to 50% year over year to around $1.5 trillion in 2027. Nvidia remains the AI infrastructure leader, trading at just 15 times analysts' estimated earnings for its fiscal 2028, and has transformed itself into a complete AI infrastructure package spanning GPUs, networking, inference chips, and data center CPUs. AMD is riding two powerful trends in inference and agentic AI, with its GPU chiplet design competing well in inference and its data center CPU leadership poised to benefit as the GPU-to-CPU ratio in AI data centers shifts from 8:1 toward 1:1, driving a total addressable market AMD sees growing at a 35% annualized rate to $120 billion by 2030. Broadcom is trading at just 19 times analysts' earnings estimates for its fiscal 2027, with custom chip revenue expected to surge to well over $100 billion next year, more than its total revenue last year and five times its prior AI revenue, fueled by Alphabet's TPUs and other hyperscale customers turning to its ASIC services.

Impact on stocks 4

Artificial Intelligence▲ · 4 stocks
Advanced Micro Devices Inc
AMD
▲ PositiveDemandrelevance

AMD's GPU chiplet design competes well in inference and its data center CPU leadership poised to benefit from shifting GPU-to-CPU ratio, with TAM growing at 35% CAGR to $120B by 2030.

Broadcom Inc
AVGO
▲ PositiveDemandrelevance

Broadcom's custom chip revenue expected to surge to over $100B next year, fueled by Alphabet's TPUs and other hyperscale customers turning to its ASIC services.

NVIDIA Corporation
NVDA
▲ PositiveDemandrelevance

Nvidia remains AI infrastructure leader with complete package spanning GPUs, networking, inference chips, and data center CPUs, trading at just 15x FY2028 earnings.

Alphabet Inc Class C
GOOG
▲ PositiveDemandrelevance

Alphabet's TPUs are a key driver of Broadcom's custom chip revenue surge, indicating strong demand for its AI infrastructure.

Theme Impact 7

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