2 Artificial Intelligence (AI) Stocks That Could Be the Next Nvidia

Exploring two potential AI stocks that might replicate Nvidia's market success and dominate their respective niches.

Companies like Nvidia have taken advantage of the rapid growth of artificial intelligence (AI) technology, establishing themselves as key players in the market for AI chips. Nvidia's dominance in this sector has led to significant revenue and stock market performance. But are there other companies that could follow a similar path and achieve market dominance in their own niches? Let's explore two possibilities:

Key Points

NASDAQ: AVGO

"Shares of the graphics card specialist have shot up 115% in 2024 as of this writing. Nvidia's rally seems here to stay, with its dominant position in the AI chip market and strong revenue growth."

1. Broadcom

Like Nvidia, Broadcom specializes in semiconductors but focuses on application-specific integrated circuits (ASICs) designed for specific tasks. These chips are well-suited for AI workloads, with increasing demand projected to drive significant revenue growth for Broadcom.

Broadcom currently holds a 35% share of the AI-focused ASIC market and has secured major customers like Meta Platforms and Alphabet for its custom AI chips, indicating strong growth potential in the coming years.

Analysts forecast steady earnings growth for Broadcom, with its AI-related revenue expected to reach $20 billion by 2027. Investors can take advantage of the company's relatively lower valuation compared to Nvidia, potentially leading to significant stock price gains.

2. The Trade Desk

The adoption of AI in digital advertising is on the rise, with AI projected to drive substantial growth in marketing spending. The Trade Desk leverages AI tools to enhance ad targeting and optimize ad spending, leading to revenue growth that outpaces the industry average.

With the launch of its Kokai platform, capable of processing millions of advertising impressions per second, The Trade Desk aims to provide advertisers with advanced tools for improved audience engagement. Analysts anticipate accelerated earnings growth for the company, positioning it as a key player in the digital ad market.

While The Trade Desk may not achieve Nvidia's level of market dominance, its focus on AI-powered advertising tools could drive long-term success and stock price appreciation.