Wall Street analysts: AI stocks can recently skip Nvidia and focus on AMD, Broadcom, and ASML.

The current semiconductor industry is becoming the dominant force in the market, and with the continuous development of artificial intelligence (AI) technology, the demand for related chips is also driving the overall industry into a period of rapid growth. Although NVIDIA (NASDAQ: NVDA) currently maintains its position as the leader in the high-performance GPU market, investors are turning their attention to other potential competitors and upstream and downstream companies in the industry chain. Ali Moarabi, a senior stock analyst at West End Capital Management, recently stated in an interview that although NVIDIA has a leading advantage, there are now investment opportunities in the market that are not limited to it. He pointed out that companies like AMD, Broadcom, and ASML are also worth following, and in certain areas, they have begun to show challenging capabilities against NVIDIA. The following is a summary of the news translation, purely for market observation, not any investment advice.

Leader technology industry shifts to multi-supplier strategy to reduce dependency

NVIDIA’s growth in recent years has primarily come from high-performance GPUs required for AI model training, particularly the H100 chip, which has almost become the standard configuration for large tech companies deploying generative AI. The Q2 2025 financial report shows that AI-related business accounts for more than 60% of the company’s total revenue, with customers concentrated among major data center operators such as Microsoft, Amazon, and Google. However, Moarabi has made a key observation that these large clients are gradually adopting a multi-vendor strategy (Multi -Vendor Strategy) to reduce dependence on a single supplier. In this context, AMD has emerged as the most promising alternative.

The challenges from AMD and Broadcom are fierce.

As a major competitor of NVIDIA, Advanced Micro Devices, Inc. (NASDAQ code AMD) is actively strengthening its layout in the AI field. The MI355X accelerator chip launched by the company is considered a strong competitor to NVIDIA’s H100, particularly excelling in AI inference tasks. According to the company’s second-quarter financial report, revenue from the data center segment grew nearly 20% year-over-year, reflecting the increasing market recognition of its AI chips. Moarabi stated that this is a typical catch-up trade; while NVIDIA will maintain its leading position in the short term, AMD has the strength to capture a portion of the market share in specific areas, especially among enterprise users looking to adopt a multi-vendor system.

In addition to traditional GPU manufacturers, Broadcom (NASDAQ: ticker AVGO) is also regarded as an important player in the AI chip market. Unlike Nvidia and AMD, which focus on standardized GPUs, Broadcom has long collaborated with Google to assist in the design of its proprietary TPU (Tensor Processing Unit), a customized chip specifically designed for AI applications. Moarabi points out that companies like Google, Meta, and Apple are seeking more targeted chip solutions, and Broadcom, with its ASIC (Application-Specific Integrated Circuit) design and integration capabilities, has become one of the biggest beneficiaries in the wave of customized AI chips. As more companies lean towards creating dedicated chips to optimize performance and energy efficiency, Broadcom’s market position is expected to continue strengthening.

ASML in the Netherlands has lithography technology.

In the core equipment sector of chip manufacturing, the Dutch ASML Holding N.V. ( Nasdaq code ASML) is an irreplaceable key enterprise. ASML holds a global monopoly on extreme ultraviolet (EUV) lithography technology, and almost all advanced process chip production must rely on its equipment. Although geopolitical risks continue to affect its shipments to China, global advanced manufacturing still cannot bypass ASML, from TSMC and Samsung to Intel.

ASML equipment is exempt from the 15% tariff imposed by the US.

The United States and the European Union have reached a trade agreement that exempts tariffs on semiconductor production equipment manufactured in Europe (including ASML’s DUV and EUV lithography equipment), avoiding a potential 15% tariff. Without the exemption, the cost of a single EUV machine could increase by up to $40 million, significantly impacting U.S. wafer foundry and advanced manufacturing investments. This exemption helps maintain the economic viability and competitiveness of U.S. manufacturing. Whether it’s NVIDIA, AMD, or Broadcom, they ultimately need to use ASML’s equipment to achieve mass production of their products, demonstrating its foundational position in the overall AI chip industry.

From an investment perspective, analyst Moarabi suggests viewing the AI chip industry as a multi-layered ecosystem rather than focusing solely on NVIDIA. Although NVIDIA’s technological leadership and brand advantages remain significant, facing issues of high valuations and customer concentration, diversifying investments into companies like AMD, Broadcom, and ASML that possess technological strength and industry support may yield more stable returns in the long-term growth trend of AI chips. This competition in the chip industry is no longer just a solo performance by NVIDIA, but rather the entire industry chain collectively moving towards a golden age driven by artificial intelligence.

This article Wall Street analysts: AI stocks can skip NVIDIA for now and focus on AMD, Broadcom, and ASML first appeared on on-chain news ABMedia.