NVIDIA GPUs are the most commonly used AI models calculation devices.
Taiwan’s semiconductor is the main supplier of chips.
Broadcom optional PG accelerators are gaining in popularity.
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While investing in artificial intelligence (AI) is a lot of attention from the market, there is a good reason for it. Here, most of the cash flows are accumulated and, depending on the money where it is spent, is a genius investment strategy.
Currently, most AI hypercalers are still creating their calculation capacity, so companies that sell this equipment to large investments. I believe in stock as Nvidia(NASDAQ: NVDA)Is it Taiwan semiconductor(NYSE: TSM)and Broadcom(Nasdaq: Avgo) There are now some of the best purchases because they get a lot of these costs.
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NVIDIA has been included in the list of the best AI companies invested in the trend in 2023. At the beginning of the year. Its graphics processing devices (GPU) are the calculation muscles that experience most AI technology today and show no signs of slowing down. NVIDIA management projects that Ai hypercalers will spend $ 600 billion in capital expenditure this year in AI data centers, but this number can range from $ 3 trillion to $ 4 trillion to 2030.
Time will show whether NVIDIA can record a large part of those expected costs, and a significant proportion will depend on whether its products will be accepted back in China when the US government will provide an NVIDIA export license. However, I think NVIDIA still has the best general -purpose calculation technology in the world, making its products a more tasteless choice to create artificial intelligence calculation capacity.
NVIDIA remains the highest stock market in the AI area, even if it has been a huge success in the last few years.
Nvidia is what is called Fabless Chip Company. It creates products, but depends on other companies to produce components entering them. One of the most important companies in this setup is Chip Foundry, which produces a device microchip. Nvidia uses a Taiwan semiconductor for this job, and the TSMC made its name in the industry by providing the best -class technology and production yields.
Almost all of the leading technology companies use TSMC chips. Often two competitors use TSMC chips such as Nvidia and AMD(NASDAQ: AMD); Because the Taiwanese semiconductor acts as a neutral party production unit, this layout works well and allows him to use huge technology trends.
The investment in the Taiwan semiconductor is to bet that companies intend to use more sophisticated chips and larger quantities in the future. I think this is a very safe assumption, so the TSMC is a great stock that can now be bought.
Broadcom challenges NVIDIA dominance in the AI computing market, in collaboration with AI hypercalers to design optional AI accelerator chips.
The NVIDIA GPU is an undeniable leader of multifunctional calculation and can handle many types of workloads, whether it is AI training, cryptocurrency mining, or engineering modeling. However, if a customer uses only NVIDIA GPU for one workload, these options are wasted. By creating a chip, given one workload, Broadcom can achieve higher performance at a cheaper price.
This does the Broadcom optional AI accelerators with potentially massive business, and it starts showing the results of the company. In the third quarter 2025 in the Fiscal Year (ended on August 3), Broadcom revenue 63%per year, and NVIDIA 56%.
This shows that Broadcom occupies a market share in this area, and it can be a force that needs to be considered in the next five years. I think Broadcom will be a great investment over the next few years, so investors should consider linking shares with NVIDIA and Taiwan semiconductor.
Consider this before buying NVIDIA:
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Keithen Drury holds positions in the production of Broadcom, Nvidia and Taiwan semiconductor. Motley Fool has positions and recommends advanced micro -equipment, Nvidia and Taiwan semiconductor production. The Motley fool recommends Broadcom. The Motley fool has a disclosure policy.
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