The Secret to Finding the Next Broadcom Is Hiding in Plain Sight

Semiconductor company Broadcom (NASDAQ: AVGO) has enjoyed an incredible year, rising some 50% so far, even after a large pullback due to poorly received fourth-quarter results. This has investors searching for the next Broadcom, as who wouldn't want those incredible one-year returns?The secret to Broadcom's rise is tied to the custom artificial intelligence (AI) chips it's developing. These compete directly against Nvidia's (NASDAQ: NVDA) graphics processing units (GPUs), which are incredibly costly due to their impressive performance and flexibility. Broadcom's custom AI chips can outperform Nvidia's GPUs at a lower price point when the workload is set up properly, giving them a huge advantage at the cost of flexibility.Designing custom AI computing units is going to become more popular, as Nvidia's chips are far too expensive not to explore this avenue. While many companies are choosing to partner with Broadcom, others are opting to do it themselves. One of these companies is hiding in plain sight, and its recent release is incredibly promising.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool