Broadcom (AVGO) Is Gaining Market Share in the AI-Chip Space, Tech Researcher Says
Broadcom Inc. (NASDAQ:AVGO) is gaining market share in the AI-chip space as more tech giants look to obtain fewer of their AI chips from Nvidia Corporation (NASDAQ:NVDA) by making their own semiconductors, Gil Luria of investment bank DA Davidson said on CNBC recently.
Luria is the Head of Technology Research at DA Davidson.
A technician working at a magnified microscope, developing a new integrated circuit.
With Broadcom Inc. (NASDAQ:AVGO)'s help, Amazon.com (NASDAQ:AMZN) and Alphabet Inc. (NASDAQ:GOOG) are increasing the production of their own AI chips, Luria said. Meanwhile, Tesla, Inc. (NASDAQ:TSLA), Meta Platforms, Inc. (NASDAQ:META), and Microsoft Corporation (NASDAQ:MSFT) are evaluating AI chips that they've developed and are attempting to produce more of them, the researcher noted.
"Broadcom Inc. (NASDAQ:AVGO) has an opportunity to grow its (market) share (further) as it helps other companies make their own chips," Luria contended.
In the last month, the shares have climbed 22%, while they have advanced 11% in the last three months.
While we acknowledge the potential of AVGO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AVGO and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: The author owns shares of AMZN but has no intention of trading them in the next 48 hours. This article is originally published at Insider Monkey.
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