2 Artificial Intelligence (AI) Stocks to Buy as Demand for Custom Chips Soars
It's not too late to invest in these high-flying stocks.
Overview
According to some reports, Amazon (NASDAQ: AMZN) is in early talks to sell Trainium, a line of ASICs (Application-Specific Integrated Circuits) -- or custom chips designed to handle specific tasks. The fact that Amazon is exploring selling Trainium to other data centers, even though it has only used it in-house so far, suggests that demand for custom AI chips is rising. And if that's the case, it might not be such a bad idea to invest in stocks that could capitalize on this trend. Let's consider two leaders in this niche that may be worth investing in right now: Broadcom (NASDAQ: AVGO) and Marvell Technology (NASDAQ: MRVL).
Image source: The Motley Fool.
Broadcom is one of the companies that could be a big winner from the rising demand for custom AI chips. The company already has several notable partners for whom it develops products. The list includes Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) -- with whom it has a contract extending through the next five years -- Meta Platforms (NASDAQ: META), and OpenAI. Broadcom is already cashing in on its work in this area: The company's revenue, earnings, and cash flow have been growing at a good clip.
Details
Source
Originally published at www.fool.com.
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