What could Broadcom’s latest earnings report mean for Nvidia investors? | 25.12.24

Demand for chips needed to train and deploy artificial intelligence (AI) models and applications in data centers has grown at a remarkable pace over the past two years. Nvidia (NASDAQ: NVDA) has been the biggest beneficiary of this rapidly growing market as it left its fellow chipmakers in the dust by grabbing the lion’s share of the AI ​​semiconductor space . No other chipmaker comes close to Nvidia in terms of revenue generated from selling AI chips. For example, in the third quarter of fiscal 2025 alone (which ended October 27), Nvidia sold $30.8 billion worth of data center chips, a remarkable 112% increase over compared to the same period last year. Its closest rival in data center graphics processing units (GPUs) – Advanced Micro Devices – is forecasting $5 billion in data center GPU revenue this year. However, GPUs are not the only type of chip that cloud service providers use for AI. model training and inference. This is evident from the rapid growth reported by Broadcom (NASDAQ: AVGO) in demand for its application-specific integrated circuits (ASICs) over the last fiscal year, driven by AI-related demand.Continue ReadingMore articles on MotleyFool More articles on MotleyFool