AI Market in Motion: Nvidia Faces Competition from Broadcom and Lam Research

The artificial intelligence revolution has so far brought Nvidia into the spotlight, but other companies are now also claiming shares in the growing market. Nvidia remains the market leader in AI chips for the time being, but the stock trades at 62 times earnings, and competition is already at the starting line. Large cloud providers, including giants like Meta Platforms, are increasingly investing in their own AI chips to reduce costs. This is where Broadcom comes into play, providing key technologies for custom chips manufactured by Taiwan Semiconductor Manufacturing. Lam Research might also be more affordable. The semiconductor equipment company scores with its specialization in etching and coating machines, crucial for the production of cutting-edge logic chips and DRAM memory. Following a price decline in the summer, shares are 29% below their peak. Notably, Lam's advancements in artificial intelligence and vertical chip structures could offer the company considerable growth in the coming years. With new technologies such as gate-all-around transistors set to take off next year, Lam Research remains a significant player.