It is expected that the world’s artificial intelligence (AI) will be strong in 2025, and the market research company IDC pours $ 337 billion into this technology when the organization integrates the AI tool into business management. It is presumed that it is highly possible.
It should be noted that IDC is estimated that 67%of the AI spending of this year will be “from a company that incorporates AI functions into the core business, and exceeds investing in major cloud and digital service providers.” There is. At the same time, cloud computing giant will continue to invest a huge amount of money to build AI infrastructure.
NVIDIA has stood at the forefront of the AI boom in a powerful graphics processing unit (GPU) that supports the training of large -scale language models (LLM) by major high -tech companies. And there is a good chance that this chip manufacturer will continue to witness the remarkable growth of profits and profits.
However, you will see the other two companies that are trying to benefit from the spread of AI in various fields, and see why they can be the top candidate for 2025 AI.
Broadcom: Solid AI chip stock to buy
While NVIDIA monopolizes the AI GPU market, Broadcom (AVGO 1.84%) Is the lead in the field of integrated circuit (ASIC) for specific applications. These are custom chips that allow you to run multiple tasks, and, unlike GPUs used for general computing purposes, you can program to execute specific tasks.
Due to the special properties of ASIC, ASIC has more energy efficiency and can work well on designed tasks. This is the explanation of the reasons why the cloud computing giants use Broadcom’s custom AI processor, which is known as XPU, to supply data centers.
According to reports, Broadcom may be producing meta platforms, Google under the alphabet, Ticktock’s parent company byte dance, and open AI chips. It has been revealed that Apple could use Broadcom to manufacture AI server chips.
At the company’s financial meeting in December 2024, Broadcom management pointed out that it has supplied its custom AI chips to three cloud hyperscale customers. The company states that these customers will introduce 1 million custom AI chip cluster in the next three years. “Broadcom is selected by two hyper scalers and (they are) developing their own next -generation AI XPU.”
This expanding AI customer base may lead to the prominent growth of Broadcom in the next three years. This is due to the fact that the AI market, which can be used by the company, reaches $ 60 billion to $ 90 billion in the 2027 fiscal year. For comparison, Broadcom’s AI revenue was $ 12.2 billion in the recently terminated 2024 accounting year, an increase of 220% year -on -year. The previous year.
According to JP Morgan, especially in consideration of Broadcom dominating the estimated 55 % to 60 % of the ASIC market, AI accelerates the growth of Broadcom even after 2025. It suggests that it is highly possible. Naturally, analysts are raising the earnings forecast for the fiscal year and the two -year fiscal year in the future.
AVGO earning prediction data for this fiscal year by YCharts
However, Broadcom may be able to grow more powerful than the analyst forecasts in response to the potential increase of new customers. Furthermore, according to Yahoo!, the company’s stock price return (PEG ratio), which is based on the expected profit growth rate in the next five years, is only 0.7 at this time. finance.
The PEG ratio is less than 1 means that the shares are underestimated compared to the expected growth of the expected profits, and even after Broadcom has increased the remarkable profit of 108 % in the past year. , Growth investors suggest that they can still consider purchasing Broadcom. 。
Snowflake: Applying AI to corporate data will be a tailwind for the company
Broadcom and NVIDIA are producing chips for major cloud computing companies to train LLM, but snowflake is. (snow -0.47%) Provides customers to integrate data into a single platform. After that, customers can use this data to build a generated AI app, get insight into data, and solve business -related issues by applying AI to that data.
Therefore, considering that most of the IDCs are expected to incorporate AI functions into corporate operations, SnowFlake has a huge market that can be pioneered in 2025. The good thing is that solutions focusing on SnowFlake AI have already gained healthy support among customers.
For example, the company’s Cortex AI platform states that it has shown significant recruitment. You can analyze data using Cortex AI, build a generated AI app, search for specific information in the document, and access popular LLMs such as LLAMA and Anthropic Claude. can. After all, it was found that more than 3,200 of SnowFlake customers had already used the AI and machine learning (ML) functions.
This is impressive, given that SnowFlake started the development of AI products in the mid -2023 and continued to add services so that users could access more tools.
The company also entered the rapidly growing AI agent market with the SnowFlake Intelligence platform announced last November. This platform allows companies to analyze and summarize data in a safe environment, and create AI agents that can use those insights to perform actions.
The Agent AI Market is expected to reach $ 45 billion in 2025, and ideally, SnowFlake -focused opportunities should be expanded. As a result, there is a good chance that the company will grow higher than expected in the future.
In the end, SnowFlake’s duty to fulfill the residual performance (RPO) showed a tremendous growth of 55% in the third quarter of the 2025 fiscal year (ended on October 31, 2024), which was $ 5.7 billion. This was a significant over 900 million dollars, up 29%year -on -year. RPO refers to a corporate undecided agreement, but will be recognized as a revenue in the future when the contract is fulfilled. Thus, compared to SnowFlake sales, the faster growth of this indicator indicates that growth may accelerate.
Existing customers spent a lot of money on the platform, as the net income maintenance rate in the quarter was 127%. This indicators indicate that more than 100% has increased the adoption of services by existing customers, as comparing the quarterly expenditure by SnowFlake customers in the same period of the previous year.
This tendency will continue as more snowflake customers start using AI services. The number of customers in SnowFlake was over 10,600 as of the end of the previous quarter, of which 30% used the company’s AI/ML solution. As a result, the company may greatly improve both profits and profits by uploading AI products to more customers.
All of these explain why Snowflake is expected to achieve more than 40% of revenue growth in the future.
Snow EPS estimation of this year’s data by YCharts
As a result, Snowflake is likely to have a steadily expanding market market in 2025 thanks to the addition of AI -centered tools to the company’s data cloud platform, and will be a prominent profit growth in the future. Considering this, it looks like the top of the AI shares to buy. forward.
