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.

Nvidia was rising early Monday, with the chip company buoyed by a wider rally in technology stocks and positive assessments from Wall Street. Nvidia shares were up 1.3% at $136.38 in morning trading.

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

Microsoft leads in AI chip purchases from Nvidia, with rivals like Meta and Amazon also investing heavily. Read more.

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.