The demand for custom AI chips is surging, with companies like Amazon, Broadcom, and Marvell Technology poised to benefit. Amazon is in early talks to sell its custom AI chip, Trainium, to other data centers. Broadcom's AI chip business grew 143% year over year to $10.8 billion in its latest quarter, with expectations to top $100 billion in fiscal 2027.
Microsoft and Adobe, despite being near 52-week lows, are considered solid investments. Microsoft's core businesses are thriving, trading at just over 19 times next year's expected earnings. Adobe's stock trades for just 8 times forward earnings, making it a long-term grower.
The AI data center boom is driving demand for gas turbines, with GE Vernova seeing significant growth. Hyperscalers like Amazon, Google, Microsoft, and Oracle are lining up to buy these turbines to power AI data centers. GE Vernova's order book is full until 2029, with orders going as far out as 2031.
Other notable developments include OpenAI and Broadcom unveiling a custom AI chip called Jalapeño, and Nvidia's data center revenue topping $75 billion in a single quarter. AI models like GLM 5.2 are also making strides, placing second on the Vending Bench benchmark.
Startups like Attention are raising funds, with $30 million for its AI sales software. Meanwhile, advertisers are struggling to influence AI models as the digital landscape shifts, and companies like Bitzero are positioning themselves to benefit from the AI boom and energy trade.
Key Takeaways
- Amazon is in talks to sell its custom AI chip, Trainium, to other data centers.
- Broadcom's AI chip business grew 143% year over year to $10.8 billion.
- Broadcom expects its AI chip revenue to top $100 billion in fiscal 2027.
- Nvidia's data center revenue topped $75 billion in a single quarter.
- Microsoft and Adobe are near 52-week lows, but considered solid investments.
- GE Vernova's order book is full until 2029, with orders going as far out as 2031.
- OpenAI and Broadcom unveiled a custom AI chip called Jalapeño.
- GLM 5.2, an AI model, placed second on the Vending Bench benchmark.
- Attention raised $30 million for its AI sales software.
- The AI boom is driving a significant increase in demand for energy.
Two AI Stocks to Buy as Custom Chip Demand Soars
Broadcom and Marvell Technology are two AI stocks that could benefit from the rising demand for custom chips. Both companies have developed custom AI chips for major hyperscalers and are rapidly growing their revenue and earnings. Demand for their services is expected to increase substantially over the next few years. Amazon is in early talks to sell its custom AI chip, Trainium, to other data centers, indicating a growing demand for custom AI chips.
OpenAI and Broadcom Unveil Custom AI Chip
OpenAI and Broadcom have unveiled a custom AI chip called Jalapeño. Broadcom expects its AI chip revenue to top $100 billion in fiscal 2027. Nvidia's data center revenue topped $75 billion in a single quarter. The custom-chip threat is real, but Nvidia's scale and software layer keep it in a different league.
Two AI Stocks to Buy as Demand for Custom Chips Soars
Broadcom and Marvell Technology are two leaders in the custom AI chip market. Broadcom's AI chip business grew 143% year over year to $10.8 billion in its latest quarter. Marvell expects year-over-year revenue to accelerate in each quarter of fiscal year 2027. Both companies are well-positioned to benefit from the growing demand for custom AI chips.
Two Battered AI Stocks Near 52-Week Lows
Microsoft and Adobe are two AI stocks that are near 52-week lows and are screaming buys now. Microsoft's core businesses are thriving, and its stock trades at just over 19 times next year's expected earnings. Adobe's stock trades for just 8 times forward earnings, making it a solid, long-term grower.
How GE Vernova Builds Gas Turbines for AI Data Centers
GE Vernova builds massive gas turbines that power AI data centers. Hyperscalers like Amazon, Google, Microsoft, and Oracle are lining up to buy these turbines to help power AI data centers. GE Vernova's order book is full until 2029, with orders going as far out as 2031.
AI Data Centers Fuel Boom for Gas Turbine Industry
The AI data center boom is driving demand for gas turbines, with companies like GE Vernova seeing significant growth. Hyperscale data centers consume vast amounts of electricity, and gas turbines are being used to meet this demand. GE Vernova's stock has seen substantial growth, with its stock price rising nearly 60% in the last six months.
Cisco Among 15 Best AI Stocks to Invest In
Cisco Systems is one of the 15 best AI stocks to invest in, according to KeyBanc. The company has a strong track record of innovation and a solid financial position. Cisco's AI capabilities and partnerships make it an attractive investment opportunity.
Apple's AI Obsession Drives Price Hikes
Apple is asking consumers to pay more for its products due to its AI obsession. The company's price hikes are driven by the increasing cost of components, such as RAM and storage. Apple's decision to raise prices is also driven by its desire to maintain profit margins.
GLM 5.2 Places 2nd on Vending Bench
GLM 5.2, an AI model, has placed second on the Vending Bench benchmark, ahead of Google and OpenAI models. The model has shown consistent improvement across successive releases, with a linear trend of gaining roughly $995 in simulated balance per month.
Attention Raises $30M for AI Sales Software
Attention has raised $30 million in funding for its AI sales software. The company's platform uses AI to automate CRM updates, coach sales reps, and generate performance scorecards. Attention's agentic tools have executed over 20 million agent actions each month.
Connecticut State Report Uses AI
A 2,000-page report by the Connecticut State Colleges and Universities system used AI in its writing process. The report's author, Terrence Cheng, admitted to using AI, sparking concerns about transparency and accountability.
Advertisers Struggle to Influence AI Models
Advertisers are finding it challenging to influence AI models as the digital landscape shifts. The conversation has turned from winning human attention to influencing AI models. This change has significant implications for Fortune 500 corporations, publishers, and political strategists.
The $7 Trillion AI Boom and Energy Trade
The AI boom is driving a significant increase in demand for energy, creating a new trade in the energy sector. Companies like Bitzero are well-positioned to benefit from this trend, with its focus on providing energy infrastructure for AI data centers.
Leopold Aschenbrenner's Top AI Stock Pick
Leopold Aschenbrenner's Situational Awareness has identified Hive Digital Technologies as a top AI stock pick. The company has AI capabilities, including natural language processing and computer vision, and is a renewable energy Bitcoin miner.
Sources
- 2 Artificial Intelligence (AI) Stocks to Buy as Demand for Custom Chips Soars
- OpenAI Is Building Its Own AI Chip With Broadcom. Should Nvidia Investors Be Worried?
- 2 Artificial Intelligence (AI) Stocks to Buy as Demand for Custom Chips Soars
- 2 Battered Artificial Intelligence (AI) Stocks Near 52-Week Lows That Are Screaming Buys Now
- How GE Vernova builds the massive gas turbines powering the AI data center boom
- AI Data Centers Fuel Boom for Gas Turbine Industry
- Here’s Why Cisco (CSCO) is Among the 15 Best AI Stocks That Will Make You Rich in 10 Years
- Why is Apple asking me to pay more for Big Tech’s AI obsession?
- GLM 5.2 Places 2nd On Vending Bench, Ahead Of All Google, OpenAI Models
- Leopold Aschenbrenner’s Situational Awareness Top Crypto and AI Stock Pick You Shouldn’t Miss
- Funded: Attention raises $30M as AI sales software shifts from note-taking to action
- State leaders weigh in on use of AI to write 2,000-page CSCU report
- Advertisers Are Good at Getting Human Attention. Can They Stand Out to A.I.?
- The $7 Trillion AI Boom Is Turning Into The Energy Trade of the Century
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