The company Broadcom is positioning itself as one of the most promising players in the Artificial Intelligence (AI) industry, with predictions that it could surpass Nvidia Corporation in performance by 2025. This perspective, supported by prominent fund managers and influential investor movements (such as a former speaker of the US House of Representatives), is driving market attention to the semiconductor giant, company that can be operated from Argentina through the Cedars.
Cedears: a new opportunity in the chip market
Stephen Yiu, manager of Blue Whale Growth Fund, anticipated that Broadcom will have significant gains in the coming years. According to Yiu, technology companies such as Microsoft, Amazon, Google and Meta are expanding their supply sources for AI chips, reducing your dependence on Nvidia and exploring custom options including Broadcom.
“No one wants to depend exclusively on a single supplier”Yiu explained. “Nvidia GPUs are powerful, but also expensive. Broadcom, with its strategic alliances and tailored solutions, presents itself as a solid alternative.”
Broadcom has seen its stock rise 103.42% this year. Its market capitalization exceeded $1 trillion in 2024 after announcing that its AI revenue tripled, reaching $12.2 billion. The company collaborates closely with technology giants such as Meta, Alphabet and ByteDance to develop custom chips that optimize AI capabilities, Benzinga reported.
Nancy Pelosi’s bet on Broadcom
Attention on Broadcom has also intensified after it was learned that Nancy Pelosi, former speaker of the United States House of Representatives, acquired purchase options on the company in June. These options, with a strike price of $80 after a 10-to-1 split, expire in 2025. Pelosi, known for her strategic investments, has generated interest and speculation about Broadcom’s future among followers of its portfolio.
Nvidia vs. Broadcom: Which one will lead the AI market?
Despite maintaining investments in Nvidia, Yiu has reduced his stake in the latter due to its size and associated growth limitations. According to Yiu, it is more likely that Broadcom, with a more modest valuation, could see significant percentage growth compared to Nvidiawhose current size requires much larger increments to achieve similar results.
“For Broadcom to grow 50%, it would need to add $500 billion, something reasonable. Instead, Nvidia would need to double its valuation, which represents a bigger challenge.”Yiu explained.
Broadcom CEO Hock Tan has been optimistic about the sustained growth of AI. Leading companies like Google and Meta have increased their investments in custom processors, and companies like OpenAI and Apple have also started working with Broadcom to develop their server chips.
High demand in the AI sector, coupled with limited supply, has favored companies like Broadcom and Nvidia. According to Howard Chan, CEO of Kurv Investment Managementthese companies are leading the technological transformation, while cloud computing services complement their developments.
Source: Ambito
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