Both stocks have had strong runs in 2024. Let's consider which semiconductor looks like the better buy heading into 2025.

Broadcom estimates revenue from its three existing hyperscale customers will range from $60 billion to $90 billion in 2027, up from $12.2 billion in 2024. In other words, the company anticipates that custom AI chip sales will increase at least 70% annually in the next three years, but perhaps as quickly as 95% annually.

Investment bank Morgan Stanley on Friday issued a bullish report on artificial intelligence chipmakers, calling Nvidia stock a top pick for 2025.

Broadcom may have had a volatile year, but the stock was rising on investor enthusiasm Tuesday as it headed for its best year on record. The California-based tech company is known for making application-specific integrated circuits,

Broadcom (NASDAQ: AVGO) has been an outstanding investment over the past three years, as shares of the semiconductor giant have shot up an impressive 240% during this time and outpaced the 27% gains clocked by the PHLX Semiconductor Sector index over the same period.