Emphasizing their critical roles in advancing AI and GPU technologies, Bernstein has listed Nvidia (NVDA, Financials) and Broadcom (AVGO, Financials) as top semiconductor stocks for 2025.

Purchasing VMware and increasing demand for AI-optimized integrated circuits and networking solutions has helped Broadcom’s market situation be considerably better. Broadcom’s development phase, according to analysts, echoes the changing events Nvidia experienced on its climb to industry leadership.

Nvidia has confirmed its dominance in the AI market meantime by means of full-scale manufacture of its Blackwell GPUs. This manufacturing effort helps the firm to be known as cornerstone of artificial intelligence development. Broadcom’s non-AI business lines struggle, but due to investor hope about its potential in the expanding AI sector, the company has experienced tremendous stock increase concurrently.

Even if there are sporadic transitory market downturns, Nvidia’s strategic emphasis permits it to be a prominent player in the evolving AI sector.

Bernstein has also concentrated on Qualcomm (QCOM, Financials), noting PC and edge artificial intelligence industry development opportunities. Qualcomm is trying with aggressive long-term objectives of major income and sales expansion by 2029.

Still, Apple’s (AAPL, Financials) future in the semiconductor business is unknown based on supply chains and ongoing legal disputes. These challenges might change its path particularly with regard to PC chip development and licensing agreements. While setting a $215 price objective based there, Bernstein has maintained Qualcomm’s “Outperform” rating. This gives promise for Qualcomm’s ability to expand in a tech world molded by constant invention.

This article first appeared on GuruFocus.