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Nvidia remains the market leader in AI infrastructure.
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Broadcom is carving out a powerful niche in helping companies design custom AI chips.
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Taiwan Semiconductor Manufacturing wins no matter who wins the battle between GPUs and ASICs.
The stock market keeps reaching new all-time highs in 2025, with growth stocks leading the way. Let’s look at three red-hot growth stocks that can continue to help lead the market higher in the coming years.
Nvidia (NASDAQ: NVDA) is the company everyone is trying to catch in the artificial intelligence (AI) infrastructure race. While new competition is brewing — from Qualcomm entering the market to companies looking to design their own custom chips — Nvidia continues to have a wide moat in the space. It all starts with its CUDA software platform, which is where most foundational AI code for graphics processing units (GPUs) was written specifically for its chips. This is huge, as most developers were trained on its software, and new code would have to be written from scratch for customers to switch.
Meanwhile, while ASICs (application-specific integrated circuits) are starting to gain some ground, these custom chips are preprogrammed and thus don’t have the flexibility of GPUs, which is important given the pace of innovation with AI. Nvidia has also established a networking advantage through its proprietary NVLink interconnect system, which essentially allows its chips to act as one big unit.
With AI infrastructure spending continuing to rise, Nvidia still finds itself in a great position to see strong growth well into the future. That makes it a growth stock to own.
While Nvidia is the GPU leader, Broadcom (NASDAQ: AVGO) has become the go-to company to help hyperscalers (companies that own large data centers) design custom AI chips. While GPUs should remain the main chips powering AI, companies are increasingly looking to diversify their chip supply chain and have some cheaper alternatives. This is where Broadcom comes in.
The company helped Alphabet develop its highly successful Tensor Processing Units, which led to a slew of new customers enlisting Broadcom for its help in designing their own custom AI ASICs. Meta Platforms and TikTok owner ByteDance were the first two to follow suit, which, together with Alphabet, helped Broadcom pencil in what has been forecasted as a $60 billion to $90 billion market opportunity in its fiscal 2027.
The company has added other big-name customers as well. This includes OpenAI in a deal to deploy 10 gigawatts of custom AI accelerators through 2029, which could become more than $100 billion worth of chips a year. It also announced another mystery customer had completed its design and had placed a $10 billion order for next year.
