Nvidia has been the face of the AI boom, but a shift may be underway. Broadcom, a company specializing in custom AI chips called XPUs and networking equipment, is predicted to outperform Nvidia as the top AI stock on the Nasdaq this year. Broadcom's stock has already gained 16% in 2024, compared to Nvidia's 7%, and the company forecasts over $100 billion in AI chip revenue by 2027, with major customers like Meta and Alphabet. This comes as AI-linked stocks now make up a record 45% of the S&P 500 market cap, returning 45.6% year-to-date, while AI debt in US credit markets has grown to over $1.4 trillion.
In other hardware news, Intel's stock surged 26% after strong earnings, signaling a potential turnaround. Amazon and Meta signed a multi-billion dollar deal for Meta to rent AI chips from Amazon, validating Amazon's in-house chip development. Meta is spending tens of billions on AI infrastructure, and the deal highlights the growing demand for specialized AI hardware. Meanwhile, Google plans to invest up to $40 billion in Anthropic, a leading AI lab, to help it add computing power for running its AI models.
On the software side, OpenAI introduced two new custom GPT agents: Trove, which automates third-party risk analysis by searching the web and Google Drive, and Tally, which automates weekly product metrics reporting from Google Sheets. These tools aim to help businesses manage compliance and save time on repetitive tasks. However, a study by Arcada Labs found that six AI models, each given $10,000 to trade on prediction markets like Kalshi and Polymarket, lost between 16% and 30.8% over 57 days, showing that AI still struggles with real-time decision-making.
Despite strong earnings from software companies like ServiceNow and IBM, their stocks fell sharply—ServiceNow dropped 18% and IBM fell 9%—as investors worry that AI tools from companies like Anthropic and OpenAI could replace software applications. The selloff spread to other software stocks like Salesforce and Atlassian, which fell about 10%. CrowdStrike CEO George Kurtz discussed the company's new AI vulnerability tool, Project QuiltWorks, noting that the time to find and fix AI vulnerabilities has become very short.
In startup news, Yale seniors Nathaneo Johnson and Sean Hargrow raised $5.1 million for Series, an AI social network that works through iMessage. Users text a phone number to connect with others based on their interests, and the platform has 82% user retention after 30 days across 750 campuses. In a lighter note, 7-Eleven entered the wedding catering business with breakfast taco wedding boxes, and Procter & Gamble beat earnings expectations driven by its beauty division.
Key Takeaways
- Broadcom is predicted to outperform Nvidia as the top AI stock on the Nasdaq this year, with its stock up 16% vs. Nvidia's 7%.
- Broadcom forecasts over $100 billion in AI chip revenue by 2027, with customers including Meta and Alphabet.
- AI-linked stocks now make up a record 45% of the S&P 500 market cap, returning 45.6% year-to-date.
- Intel's stock surged 26% after strong earnings, signaling a potential turnaround.
- Amazon and Meta signed a multi-billion dollar deal for Meta to rent AI chips from Amazon.
- Google plans to invest up to $40 billion in Anthropic to help it add computing power for AI models.
- OpenAI launched Trove and Tally, custom GPT agents that automate risk analysis and metrics reporting.
- Six AI models lost between 16% and 30.8% trading on prediction markets over 57 days.
- Software stocks like ServiceNow and IBM fell sharply despite strong earnings, due to AI fears.
- Yale students raised $5.1 million for Series, an AI social network with 82% user retention after 30 days.
Broadcom may beat Nvidia as top AI stock this year
Nvidia has been the star of AI stock growth, but Broadcom might outperform it by the end of the year. Broadcom makes custom AI chips called XPUs and networking equipment, unlike Nvidia's general-purpose GPUs. Broadcom's stock has already gained 16% this year compared to Nvidia's 7%. The company predicts it will make over $100 billion from AI chips alone by 2027, with major customers like Meta and Alphabet.
Networking giant could outpace Nvidia in AI stock race
A company that specializes in networking equipment is predicted to be the best-performing AI stock on the Nasdaq by year-end, beating Nvidia. This company focuses on edge computing, which handles data from IoT devices. It has strong financials, a solid balance sheet, and a history of consistent profits. In contrast, Nvidia has faced slower revenue growth and market share challenges.
Broadcom predicted to outperform Nvidia as top AI stock
Nvidia has seen huge growth in earnings and stock price, but Broadcom may be the best-performing AI stock on the Nasdaq this year. Broadcom makes custom AI chips called XPUs and networking equipment, avoiding direct competition with Nvidia. The company forecasts over $100 billion in AI chip revenue by 2027. Broadcom's stock has gained 16% this year, while Nvidia is up 7%.
OpenAI launches Trove agent for automated risk analysis
OpenAI introduced Trove, a custom GPT agent that automates third-party risk analysis. Trove uses web search, Google Drive, and Google Docs to assess vendor risk. It takes vendor details, searches for information, and compares it against a risk criteria spreadsheet. The agent then creates a detailed report in Google Docs, helping businesses manage compliance more efficiently.
OpenAI agent Tally automates weekly metrics reporting
OpenAI demonstrated a custom agent called Tally that automates weekly product metrics reporting. Tally reads data from Google Sheets, computes weekly metrics, and drafts updates with week-over-week comparisons. The agent can be scheduled to run automatically, for example every Friday at noon. This helps teams save time on repetitive data analysis tasks.
AI traders lose money testing prediction markets
Researchers at Arcada Labs tested six AI models by giving each $10,000 to trade on prediction markets like Kalshi and Polymarket. Over 57 days, every model lost money, between 16% and 30.8% on Kalshi. The models performed better on Polymarket, possibly because they could choose from more markets. The study aimed to see how AI handles real-time decisions and information.
CrowdStrike CEO discusses AI vulnerability tool Project QuiltWorks
CrowdStrike CEO George Kurtz appeared on CNBC's Money Movers to talk about the company's new tool, Project QuiltWorks. He also discussed Anthropic's Mythos. Kurtz noted that the time to find and fix AI vulnerabilities has become very short.
Yale students raise $5.1 million for AI social network Series
Yale seniors Nathaneo Johnson and Sean Hargrow raised $5.1 million for Series, an AI social network that works through iMessage. Users text a phone number to connect with others based on their interests. Series offers shares of 10 images from other users, and people can start private conversations without sharing phone numbers. The platform has 82% user retention after 30 days and is used across 750 campuses.
Intel stock surges 26 percent as Amazon and Meta strike AI chip deal
Intel's stock jumped 26% after strong earnings, signaling a potential turnaround. Amazon and Meta signed a multi-billion dollar deal for Meta to rent AI chips from Amazon. Procter & Gamble also beat earnings expectations, driven by its beauty division. In a surprising move, 7-Eleven entered the wedding catering business with breakfast taco wedding boxes.
Software stocks fall despite good earnings due to AI fears
Software companies like ServiceNow and IBM reported earnings that beat Wall Street estimates, but their stocks dropped sharply. ServiceNow fell 18% and IBM fell 9% after their reports. The selloff spread to other software stocks like Salesforce and Atlassian, which fell about 10%. Investors are worried that AI tools from companies like Anthropic and OpenAI could replace software applications, hurting the industry.
AI stocks now make up record 45 percent of S&P 500 market cap
Artificial intelligence-linked stocks now represent a record 45% of the S&P 500 index. These stocks have returned 45.6% year-to-date, outperforming the broader market's 24.1% return. AI debt in US credit markets has also grown to over $1.4 trillion, a 25% increase from last year. This shows the growing influence of AI on the stock market and financial sector.
Google plans to invest up to $40 billion in Anthropic
Google is set to invest up to $40 billion in Anthropic, a leading AI lab. The investment will help Anthropic add computing power to run its AI models. Anthropic was founded in 2021 and has developed advanced AI models for tasks like answering questions and generating text. This deal shows Google's strong commitment to advancing AI technology.
Meta signs deal with Amazon for AI chips
Meta Platforms announced it will use Amazon's AI chips for some of its computing needs. The deal is seen as validation of Amazon's in-house chip development. Meta is spending tens of billions on building AI infrastructure. The agreement highlights the growing demand for specialized AI hardware.
Sources
- Prediction: The Best-Performing Artificial Intelligence (AI) Stock on the Nasdaq by Year-End Won't Be Nvidia
- Prediction: The Best-Performing Artificial Intelligence (AI) Stock on the Nasdaq by Year-End Won't Be Nvidia
- Prediction: The Best-Performing Artificial Intelligence (AI) Stock on the Nasdaq by Year-End Won't Be Nvidia
- OpenAI's Trove Agent Automates Third-Party Risk Analysis
- OpenAI Agents Automate Weekly Metrics Reporting
- AI traders are already testing prediction markets—and losing money
- CrowdStrike CEO on Project QuiltWorks: The window to find & patch AI vulnerabilities has collapsed
- Two college kids raise a $5.1 million pre-seed to build an AI social network in iMessage
- Intel, Meta, and 7-Eleven Make Market Moves
- AI Fears Keep Hammering Software Stocks—Even Those Reporting Good Earnings
- AI Swallows Wall Street: Stocks Hit Record 45% of S&P 500 Market Cap
- Google to invest up to $40bn in Anthropic
- Meta Strikes a Deal With Amazon for AI Chips. What It Means for the Stocks.
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