Nvidia Fell While AMD and Broadcom Jumped. Here’s What History Says Happens Next to All 3 Stocks.

Résumé détaillé

Nvidia (NASDAQ:NVDA) shareholders have had a rough few weeks. Nvidia's stock was a bit weak heading into November amid a marketwide AI sell-off, but in the days since news broke t…

Nvidia (NASDAQ:NVDA) shareholders have had a rough few weeks. Nvidia's stock was a bit weak heading into November amid a marketwide AI sell-off, but in the days since news broke that its CEO, Jensen Huang, had an affair with an alleged Chinese spy, the stock has taken a beating. That weakness has continued after Huang's announcement on Thursday that he was stepping down from the CEO role. CFO Colette Kress has been tapped to lead the company on an interim basis while the board searches for the next CEO.

Some companies' losses are others' gains, and while Nvidia is down 21% so far this month, AMD (NASDAQ:AMD) has risen by around 4% and Broadcom (NASDAQ:AVGO) is up about 6%. That's a major mismatch, but the question is: What happens next with this trio of chipmakers?

Missed AI's "Act 1"? Act 2 Could Be 16x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we're only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »

Let's take a look at what history has to say about what's going on, and consider which stock may be the best to buy of this trio right now.

These three companies are all competitors in the data center computing world. Nvidia and AMD design GPUs, which are broad-purpose computing units that excel at handling a wide range of computationally heavy workloads. However, that flexibility comes at a cost. GPUs are more expensive to manufacture, buy, and operate than chips that are purpose-built for narrow types of AI workloads. That's where Broadcom's application-specific integrated circuits (ASICs) come in — those custom AI chips are becoming quite popular with data center operators.

Nvidia has by far the largest data center segment of the three. During its most recently reported quarter, its data center revenue rose 117% year over year to $89 billion. Broadcom's AI semiconductor division is far smaller, with quarterly revenue of $16.7 billion.

AMD is in last place…

How…

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