Nvidia, Broadcom, and Qualcomm are the best chip ideas, said semiconductor analyst Stacy Rasgon. He has Outperform ratings on all three companies. The analyst has price targets for Nvidia, Broadcom, and Qualcomm of $175,

Shares of chip makers tied to the AI trade will continue to surge in the first half of 2025 before investor interest shifts, BofA said.

One analyst noted that the type of AI chip Broadcom makes could pick up market share relative to “costly” graphics processing units.

Broadcom backed up Nvidia’s projections that large technology companies have an appetite for building data centers with up to 10 times as many AI chips as today.

Shares of Nvidia fell over 2% in midday trading on Friday, diverging from a broader rally in semiconductor stocks led by Broadcom’s milestone entry into the trillion-dollar valuation club. Nvidia’s drop followed the U.